Earthlink 2014 Annual Report Download - page 57

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 successfully transition to a leading managed network, security and cloud
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 failure to achieve operating efficiencies would adversely affect our results of operations and cash flows; (4)
that we may have to undertake further restructuring plans that would require additional charges; (5) that is 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; (6) that we may be
unable to successfully divest non-
strategic products, which could adversely affect our results of operations(7) that we may be unable to
successfully make or integrate acquisitions, which could adversely affect our results of operations; (8) that we face significant competition in the
communications and managed services industry that could reduce our profitability; (9) that failure to retain existing customers could adversely
affect our results of operations and cash flows; (10) 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; (11) 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; (12) 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; (13) that we may experience reductions in switched access and reciprocal compensation revenue; (14) that failure to
obtain and maintain necessary permits and rights-of-
way could interfere with our network infrastructure and operations; (15) 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; (16)
that we obtain a majority of our network equipment and software from a limited number of third-
party suppliers; (17) that our commercial and
alliance arrangements may not be renewed or may not generate expected benefits, which could adversely affect our results of operations; (18)
our consumer business is dependent on the availability of third-
party network service providers; (19) that we face significant competition in the
Internet access industry that could reduce our profitability; (20) that the continued decline of our consumer access subscribers will adversely
affect our results of operations; (21) that potential regulation of Internet service providers could adversely affect our operations; (22) that cyber
security breaches could harm our business; (23) that privacy concerns relating to our business could damage our reputation and deter current and
potential users from using our services; (24) 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; (25) that our business depends on
effective business support systems and processes; (26) 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; (27) 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; (28) that we may not be able to protect our intellectual property; (29) 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; (30) that unfavorable general economic
conditions could harm our business; (31) that government regulations could adversely affect our business or force us to change our business
practices; (32) that our business may suffer if third parties are unable to provide services or terminate their relationships with us; (33) that we
may be required to recognize impairment charges on our goodwill and other intangible assets, which would adversely affect our results of
operations and financial position; (34) that 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; (35) that our indebtedness could adversely affect our financial health and
limit our ability to react to changes in our business and industry; (36) 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; (37) that our debt agreements include restrictive covenants, and failure to
comply with these covenants could trigger acceleration of payment of outstanding indebtedness; (38) that we may reduce, or cease payment of,
quarterly cash dividends; (39) that our stock price may be volatile; (40) 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 (41) 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."
52