Carbonite 2011 Annual Report Download - page 30

Table of Contents
significant fluctuations in response to various factors, some of which are beyond our control. Some of the factors that may cause the market price for
shares of our common stock to fluctuate include:
In addition, the stock market in general, and the market for internet-related companies in particular, has experienced extreme price and volume
fluctuations that have often been unrelated or disproportionate to the operating performance of those companies. Securities class action litigation has
often been instituted against companies following periods of volatility in the overall market and in the market price of a company’s securities. This
litigation, if instituted against us, could result in very substantial costs, divert our management’s attention and resources, and harm our business,
operating results, and financial condition. In addition, recent fluctuations in the financial and capital markets have resulted in volatility in securities
prices.
If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which
could harm our operating results, our ability to operate our business, and investors’ views of us.
Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial
statements on a timely basis is a costly and time-consuming effort that needs to be evaluated frequently. As part of our process of documenting and
testing our internal control over financial reporting, we may identify areas for further attention and improvement. Implementing any appropriate changes
to
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fluctuations in our quarterly financial results or the quarterly financial results of companies perceived to be similar to us;
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actual or anticipated fluctuations in our key operating metrics, financial condition, and operating results;
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loss of existing customers or inability to attract new customers;
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actual or anticipated changes in our growth rate;
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announcements of technological innovations or new offerings by us or our competitors;
• our announcement of actual results for a fiscal period that are lower than projected or expected or our announcement of revenue or earnings
guidance that is lower than expected;
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changes in estimates of our financial results or recommendations by securities analysts;
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failure of any of our solutions to achieve or maintain market acceptance;
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changes in market valuations of similar companies;
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success of competitive products or services;
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changes in our capital structure, such as future issuances of securities or the incurrence of debt;
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announcements by us or our competitors of significant products or services, contracts, acquisitions, or strategic alliances;
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regulatory developments in the U.S. or foreign countries;
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actual or threatened litigation involving us or our industry;
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additions or departures of key personnel;
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general perception of the future of the online backup market or our solutions;
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share price and volume fluctuations attributable to inconsistent trading volume levels of our shares;
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sales of our shares of common stock by us or our stockholders; and
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changes in general economic, industry, and market conditions.