Carbonite 2011 Annual Report Download - page 12

Table of Contents
for us to compete effectively, including on the basis of price, sales and marketing programs, technology, or service functionality. We expect these trends
to continue as companies attempt to strengthen or maintain their market positions.
Employees
As of December 31, 2011, we had 342 full-time and 22 part-time employees. Of our full-time employees, 196 were in operations and support, 32
were in sales and marketing, 96 were in technology, and 18 were in general and administrative functions. None of our employees are covered by
collective bargaining agreements.
Available Information
We file reports with the Securities and Exchange Commission (“SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K any other filings required by the SEC. We make available on our website (www.carbonite.com) our annual report on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after
such material is electronically filed with or furnished to the SEC. These materials are available free of charge on or through our website via the Investor
Relations page at www.carbonite.com. References to our website address in this report are intended to be inactive textual references only, and none of
the information contained on our website is part of this report or incorporated in this report by reference.
The public may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC
20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains
an Internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file
electronically with the SEC.
ITEM 1A. RISK FACTORS
An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below and the other
information in this Annual Report on Form 10-K before making an investment decision. Our business, prospects, financial condition, or operating
results could be harmed by any of these risks, as well as other risks not currently known to us or that we currently consider immaterial. The trading
price of our common stock could decline due to any of these risks, and, as a result, you may lose all or part of your investment.
Risks Related to Our Business
We have experienced losses and negative cash flow since our inception, and we may not be able to achieve or sustain profitability or positive cash
flow in the future.
We experienced net losses of $19.2 million for 2009, $25.8 million for 2010, and $23.5 million for 2011, respectively, and have an accumulated
deficit of $100.4 million as of December 31, 2011. We have not generally achieved positive cash flow from our operations or reported net income, and
we do not expect to be profitable for the foreseeable future. We expect to continue making significant expenditures to develop and expand our business,
including for advertising, customer acquisition, technology infrastructure, storage capacity, product development, and international expansion, in an
effort to increase and service our customer base. In 2011, we incurred increased expenses associated with relocating our customer service operations
from India to the U.S., which adversely affected our operating results for 2011. In 2012, we expect to continue to incur increased expenses associated
with the relocation of one of our data centers to a new facility. We also expect that our quarterly results may fluctuate due to a variety of factors
described elsewhere in this Annual Report on Form 10-K, including the timing and amount of our advertising expenditures, which are seasonal, as well
as the
9