Enom 2010 Annual Report Download - page 36

Table of Contents
cause us to incur substantial costs and may cause us to suffer data loss or delays or interruptions in service. These delays or interruptions in our service may
cause our consumers, advertisers, customers and freelance content creators to become dissatisfied with our offerings and could adversely affect our business.
Failure to update our technology infrastructure as new technologies become available may also put us in a weaker position relative to a number of our key
competitors. Competitors with newer technology infrastructure may have greater flexibility and be in a position to respond more quickly than us to new
opportunities, which may impact our competitive position in certain markets and adversely affect our business.
We are currently expanding and improving our information technology systems. If these implementations are not successful, our business and operations
could be disrupted and our operating results could suffer.
We recently deployed the first phase of our enterprise reporting system, Oracle Applications ERP and Platform, to assist us in the management of our
financial data and reporting, as well as to automate certain business wide processes and internal controls. We anticipate that this system will be a long-term
investment and that the addition of future build-outs, customizations and/or applications associated with this system will require significant management time,
support and cost. Moreover, there are inherent risks associated with developing, improving and expanding information systems. We cannot be sure that the
expansion of any of our systems, including our Oracle system, will be fully or effectively implemented on a timely basis, if at all. If we do not successfully
implement informational systems on a timely basis or at all, our operations may be disrupted and or our operating results could suffer. In addition, any new
information system deployments may not operate as we expect them to, and we may be required to expend significant resources to correct problems or find
alternative sources for performing these functions.
Changes in regulations or user concerns regarding privacy and protection of user data, or any failure to comply with such laws, could diminish the value
of our services and cause us to lose customers and revenue.
When a user visits our websites or certain pages of our customers' websites, we use technologies, including "cookies," to collect information related to
the user, such as the user's Internet Protocol, or IP, address, demographic information, and history of the user's interactions with advertisements previously
delivered by us. The information that we collect about users helps us deliver appropriate content and targeted advertising to the user. A variety of federal, state
and international laws and regulations govern the collection, use, retention, sharing and security of data that we receive from and about our users. The existing
privacy-related laws and regulations are evolving and subject to potentially differing interpretations. We post privacy policies on all of our owned and
operated websites which set forth our policies and practices related to the collection and use of consumer data. Any failure, or perceived failure, by us to
comply with our posted privacy policies or with industry standards or laws or regulations could result in a loss of consumer confidence in us, or result in
actions against us by governmental entities or others, all of which could potentially cause us to lose consumers and revenues.
In addition, various federal, state and foreign legislative and regulatory bodies may expand current or enact new laws regarding privacy matters. Recent
developments related to "instant personalization" and similar technologies potentially allow us and other publishers access to even broader and more detailed
information about users. These developments have led to greater scrutiny of industry data collection practices by regulators and privacy advocates. New laws
may be enacted, or existing laws may be amended or re-interpreted, in a manner which limits our ability to analyze user data. If our access to user data is
limited through legislation or any industry development, we may be unable to provide effective technologies and services to customers and we may lose
customers and revenue.
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