eFax 2015 Annual Report Download - page 9

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among others, laws and regulations addressing privacy, data storage, retention and security, freedom of expression, content, taxation, numbers, advertising and intellectual property.
We are not a regulated telecommunications provider in the U.S. For information about the risks we face with respect to governmental regulation, please see Item 1A of this Annual
Report on Form 10-K entitled Risk Factors.
Seasonality
Our Business Cloud Services revenues are impacted by the number of effective business days in a given period. We traditionally experience lower than average Business
Cloud Services usage and customer sign-ups in the fourth quarter. Revenues associated with our Digital Media operations are subject to seasonal fluctuations, becoming most active
during the fourth quarter holiday period due to increased retail activity.
Research and Development
The markets for our services are evolving rapidly, requiring ongoing expenditures for research and development and timely introduction of new services and service
enhancements. Our future success will depend, in part, on our ability to enhance our current services, to respond effectively to technological changes, to sell additional services to our
existing customer base and to introduce new services and technologies that address the increasingly sophisticated needs of our customers.
We devote significant resources to develop new services and service enhancements. Our research, development and engineering expenditures were $34.3 million , $30.7
million and $25.5 million for the fiscal years ended December 31, 2015 , 2014 and 2013 , respectively. For more information regarding the technological risks that we face, please
refer to the section entitled Risk Factors contained in Item 1A of this Annual Report on Form 10-K.
Employees
As of December 31, 2015, we had approximately 1,608 employees, the majority of whom are in the U.S.
Our future success will depend, in part, on our ability to continue to attract, retain and motivate highly qualified technical, marketing and management personnel. Our
employees are not represented by any collective bargaining unit or agreement. We have never experienced a work stoppage. We believe our relationship with our employees is good.
Web Availability of Reports
The Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a)
and 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are filed with the Securities and Exchange Commission (the "SEC"). The Company is subject to
the informational requirements of the Exchange Act and files or furnishes reports, proxy statements and other information with the SEC. Such reports and other information filed by
the Company with the SEC are available free of charge on the Company's website at www.j2.com as soon as reasonably practicable after such reports are available on the SEC's
website. The information on our website is not part of this report. The SEC maintains an Internet site that contains reports, proxy and information statements and other information
regarding our filings we file electronically with the SEC at www.sec.gov .
Item 1A. Risk Factors
Beforedecidingtoinvestinj2Globalortomaintainorincreaseyourinvestment,youshouldcarefullyconsidertherisksdescribedbelowinadditiontotheothercautionary
statementsandrisksdescribedelsewhereinthisAnnualReportonForm10-KandourotherfilingswiththeSEC,includingoursubsequentreportsonForms10-Qand8-K.The
risksanduncertaintiesdescribedbelowarenottheonlyonesweface.Additionalrisksanduncertaintiesnotpresentlyknowntousorthatwecurrentlydeemimmaterialalsomay
affectourbusiness.Ifanyoftheseknownorunknownrisksoruncertaintiesactuallyoccurs,ourbusiness,prospects,financialcondition,operatingresultsandcashflowscouldbe
materiallyadverselyaffected.Inthatevent,themarketpriceofourcommonstockwilllikelydeclineandyoumaylosepartorallofyourinvestment.
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