eBay 1999 Annual Report Download - page 31

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relationship. Under this new agreement, eBay will pay AOL $75 million over the four-year term of the contract.
See Notes 7 and 10 of Notes to Consolidated Financial Statements.
The Company believes that its existing cash, cash equivalents and investments, and any cash generated from
operations will be sufficient to fund its operating activities, capital expenditures and other obligations for the
foreseeable future. However, if during that period or thereafter the Company is not successful in generating
sufficient cash flow from operations or in raising additional capital when required in sufficient amounts and on
terms acceptable to the Company, the Company’s business could suffer.
Year 2000
The Company reviewed and tested its internal programs and those of its newly-acquired businesses and
determined that there were no significant Year 2000 issues within its or their mission critical systems or services.
During the Company’s review of third-party software, the Company and its subsidiaries identified certain
software ‘‘patches’’ for third-party software that needed to be implemented for Year 2000 compliance. All of
these patches were implemented prior to January 1, 2000. Total out-of-pocket costs associated with Y2K
remediation efforts were less than $1.5 million. Although the Company has not experienced any significant
Year 2000 problems in its own software or third-party systems, it is possible that such problems still exist. If so,
the Company could face unexpected expenses to fix such problems or suffer unexpected outages, either of which
would harm its business.
Risk Factors
The risks and uncertainties described below are not the only ones facing our company. Additional risks and
uncertainties not presently known to us or that we currently deem immaterial also may impair our business
operations. If any of the following risks actually occur, our business could be harmed.
We have a limited operating history
Our company was formed as a sole proprietorship in September 1995 and we incorporated in May 1996.
We have only a limited operating history on which you can base an evaluation of our business and prospects. As
an online commerce company in the early stage of development, we face substantial risks, uncertainties, expenses
and difficulties. You should consider an investment in our company in light of these risks, uncertainties, expenses
and difficulties. To address these risks and uncertainties, we must do the following:
●maintain and increase our number of registered users, items listed on our service and completed sales;
●expand into new markets;
●maintain and grow our website and customer support operations at a reasonable cost;
●continue to make trading through our service safer for users;
●maintain and enhance our brand;
●successfully execute our business and marketing strategy;
●continue to develop and upgrade our technology and information processing systems;
●continue to enhance our service to meet the needs of a changing market;
●provide superior customer service;
●respond to competitive developments; and
●attract, integrate, retain and motivate qualified personnel.
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