Earthlink 2013 Annual Report Download - page 63

Table of Contents
Cautionary Note Concerning Factors That May Affect Future Results
The Management's Discussion and Analysis and other portions of this Annual Report on Form 10-K include "forward-
looking" statements
(rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described.
Although we believe that the expectations expressed in these forward-
looking statements are reasonable, we cannot promise that our
expectations will turn out to be correct. Our actual results could be materially different from and worse than our expectations. With respect to
such forward-
looking statements, we seek the protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include,
without limitation (1) that we may not be able to execute our strategy to be a leading communications and IT services provider, which could
adversely affect our results of operations and cash flows; (2) that we may not be able to grow revenues from our growth products and services to
offset declining revenues from our traditional products and services, which could adversely affect our results of operations and cash flows; (3)
that our failure to achieve operating efficiencies will adversely affect our results of operations; (4) that as a result of our continuing review of our
business, we may have to undertake further restructuring plans that would require additional charges, including incurring facility exit and
restructuring charges; (5) that we may be unsuccessful integrating acquisitions into our business, which could result in operating difficulties,
losses and other adverse consequences; (6) that if we are unable to adapt to changes in technology and customer demands, we may not remain
competitive, and our revenues and operating results could suffer; (7) that unfavorable general economic conditions could harm our business; (8)
that we may be unable to successfully identify, manage and assimilate future acquisitions, which could adversely affect our results of operations;
(9) that we face significant competition in the communications and IT services industry that could reduce our profitability; (10) that failure to
retain existing customers could adversely affect our results of operations and cash flows; (11) that decisions by legislative or regulatory
authorities, including the Federal Communications Commission relieving incumbent carriers of certain regulatory requirements, and possible
further deregulation in the future, may restrict our ability to provide services and may increase the costs we incur to provide these services; (12)
that if we are unable to interconnect with AT&T, Verizon and other incumbent carriers on acceptable terms, our ability to offer competitively
priced local telephone services will be adversely affected; (13) that our operating performance will suffer if we are not offered competitive rates
for the access services we need to provide our long distance services; (14) that we may experience reductions in switched access and reciprocal
compensation revenue; (15) that failure to obtain and maintain necessary permits and rights-of-
way could interfere with our network
infrastructure and operations; (16) that we have substantial business relationships with several large telecommunications carriers, and some of
our customer agreements may not continue due to financial difficulty, acquisitions, non-
renewal or other factors, which could adversely affect
our wholesale revenue and results of operations; (17) that we obtain a majority of our network equipment and software from a limited number of
third-
party suppliers; (18) that work stoppages experienced by other communications companies on whom we rely for service could adversely
impact our ability to provision and service our customers; (19) that our commercial and alliance arrangements may not be renewed or may not
generate expected benefits, which could adversely affect our results of operations; (20) our consumer business is dependent on the availability of
third-
party network service providers; (21) that we face significant competition in the Internet access industry that could reduce our profitability;
(22) that the continued decline of our consumer access subscribers will adversely affect our results of operations; (23) that potential regulation of
Internet service providers could adversely affect our operations; (24) that cyber security breaches could harm our business; (25) that privacy
concerns relating to our business could damage our reputation and deter current and potential users from using our services; (26) that interruption
or failure of our network, information systems or other technologies could impair our ability to provide our services, which could damage our
reputation and harm our operating results; (27) that our business depends on effective business support systems and processes; (28) that if we, or
other industry participants, are unable to successfully defend against disputes or legal actions, we could face substantial liabilities or suffer harm
to our financial and operational prospects; (29) that we may be accused of infringing upon the intellectual property rights of third parties, which
is costly to defend and could limit our ability to use certain technologies in the future; (30) that we may not be able to protect our intellectual
property; (31) that we may be unable to hire and retain sufficient qualified personnel, and the loss of any of our key executive officers could
adversely affect us; (32) that government regulations could adversely affect our business or force us to change our business practices; (33) that
our business may suffer if third parties are unable to provide services or terminate their relationships with us; (34) that we may be required to
recognize impairment charges on our goodwill and intangible assets, which would adversely affect our results of operations and financial
position; (35) that we may not realize our deferred tax assets, we may have exposure to greater than anticipated tax liabilities and we may be
limited in the use of our net operating losses and certain other tax attributes in the future; (36) that our indebtedness could adversely affect our
financial health and limit our ability to react to changes in our industry; (37) that we may require substantial capital to support business growth,
and this capital may not be available to us on acceptable terms, or at all; (38) that our debt agreements include restrictive covenants, and failure
to comply with these covenants could trigger acceleration of payment of outstanding indebtedness; (39) that we may reduce, or cease payment
of, quarterly cash dividends; (40) that our stock price may be volatile; (41) that provisions of our certificate of incorporation, bylaws and other
elements of our capital structure could limit our share price and delay a change of control of the company; and (42) that our bylaws designate the
Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by
our stockholders, which could limit our stockholders’
flexibility in obtaining a judicial forum for disputes with us or our directors, officers or
employees. These risks and uncertainties are described in greater detail in Item 1A of Part I, "Risk Factors."
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