Support.com 2007 Annual Report Download - page 26

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loss of alliance partners;
•
failure to realize the potential financial or strategic benefits of the acquisition; and
•
failure to successfully further develop the combined technology, resulting in the impairment of amounts recorded as goodwill or other
intangible assets.
We must compete successfully in the markets in which we operate or our business will suffer.
We compete in markets that are highly competitive, subject to rapid change and significantly affected by new product introductions and other market
activities of industry participants. We compete with a number of companies in the market for automated delivery of support and service automation and other
vendors who may offer products or services with features that compete with specific elements of our software products and services. In addition, our customers
and potential customers have developed or may develop internally similar software systems.
The markets for our products are still rapidly evolving, and we may not be able to compete successfully against current and potential competitors. Our
ability to expand our business will depend on our ability to maintain our technological advantage, introduce timely enhanced products to meet growing support
needs, deliver on-going value to our customers and scale our business. Our potential competitors may have longer operating histories, significantly greater
financial, technical and other resources, stronger strategic alliances or greater name recognition than we have. Competition in our markets could reduce our
market share or require us to reduce the price of products and services, which could harm our business, financial condition and operating results.
As we further expand our business into the market for premium technology support, we expect new competitors, including electronics retailers that offer
premium technology support services, companies that offer online technology support and local computer repair shops. Certain of these competitors have longer
operating histories, significantly greater financial, technical and other resources, stronger strategic alliances or greater name recognition than we have.
The integration of new management and the loss of key personnel may affect our ability to achieve our business goals.
Our success depends on the skills, experience and performance of our senior management, engineering, sales, marketing and other key personnel. Many
members of senior management have been appointed within the last 2 years. Our success will depend to a significant extent on the ability of these executives to
function effectively in their new roles and to work together successfully. If these executives do not function and work together successfully, or if we lose the
services of one or more of our executives or key employees, our business could be harmed. In addition, we have reduced our workforce. Reductions in our
workforce could make it difficult to motivate and retain remaining employees or attract needed new employees, and could also affect our ability to deliver
products and services in a timely fashion.
Our reorganization efforts may strain our management and our administrative, technical, operational and financial infrastructure.
In January 2008, we reorganized the company and began operating in two business units, the Consumer Solutions Group (composed of operations relating
to the consumer initiative we launched in 2007), and the Enterprise Solutions Group (composed of our traditional business). And we also appointed an executive
vice president to lead each of the business units. We made this change in an effort to ensure that each part of our business is focused, accountable and transparent.
In connection with this change we made several management and organizational changes. We are also focused on increasing our operating margins and
improving our operating efficiencies, particularly in our enterprise
22
Source: SUPPORTSOFT INC, 10-K, March 13, 2008