Incredimail 2009 Annual Report Download - page 15

Termination of our agreement with Commtouch could result in lost revenues and loss of market share.
We launched our anti-spam solution JunkFilter Plus
in the third quarter of 2005. This solution has provided a material portion of our
revenues. We amended our agreement with Commtouch Ltd., the developer of the anti-
spam software development kit, on July 15, 2008 and
extended it for two additional years. If our agreement with Commtouch were to terminate, we would be required to redevelop our
JunkFilter
Plus
anti-
spam product, or retain a new provider of a development kit, and, as a result we would likely suffer lost revenues and the potential loss
of market share. In addition, to the extent Commtouch is unable to continue and support the service, and we are unsuccessful in providing an
equivalent alternative, we may have to refund some of the outstanding subscription fees.
Our products operate in a variety of computer configurations and could contain undetected errors or defects that could result in
product failures, lost revenues and loss of market share.
Our software may contain undetected errors, failures or defects, especially when the products are first introduced or when new versions
are released. Our customers’ computer environments are often characterized by a wide variety of standard and non-
standard configurations that
make pre-release testing for programming or compatibility errors very difficult and time-
consuming. Therefore, there could be errors or failures
in our products. In addition, despite testing by us and beta testing by some of our registered users, errors, failures or bugs may not be found in
new products or releases until after commencement of commercial sales. In the past, we have discovered software errors, failures and defects in
certain of our product offerings after their introduction and have likely experienced delayed or lost revenues during the period required to correct
these errors.
Errors, failures or defects in products released by us could result in negative publicity, product returns, loss of or delay in market
acceptance of our products, loss of competitive position or claims by customers. Alleviating any of these problems could require significant
expense and could cause interruptions.
Due to our evolving business model and rapid changes in the Internet, we may not be able to predict our future performance or continue
our revenue growth or profitability.
Since beginning operations in 2000, we have introduced new products and initiatives almost every year, some of which have been
unsuccessful. Consequently, we have a limited history of ongoing operations from which to predict our future performance. The future viability
of our business will depend on our ability to increase product sales, introduce new products appealing to the Internet market, increase search
generated, affiliate and advertising revenues, exploit our brand name and control our costs, which we may be unable to do. As a result, we may
not be able to continue our revenue growth or profitability.
We may have difficulty managing our growth, which could limit our ability to increase our sales and control our costs.
We have been experiencing significant growth in the scope of our operations. This
growth, required in order to achieve our business
objectives, has placed increased demands on our management and on our operational resources. This growth has, and continues to increase the
challenges involved in:
If we cannot scale and manage our business appropriately, we will not experience our projected growth and our financial results will
suffer.
A decline in market acceptance for Microsoft technologies on which our products rely could have a material adverse affect on us .
Our products currently run on Microsoft Windows operating systems. Our web client interfaces are supported on certain browsers
which run on Windows, Mac and Linux. A decline in market acceptance for Microsoft technologies or the increased acceptance of other server
technologies could cause us to incur significant development costs and could have a material adverse effect on our ability to market our current
products. Although we believe that Microsoft technologies will continue to be widely used by businesses, we cannot assure you that businesses
will adopt these technologies as anticipated or will not in the future migrate to other computing technologies that we do not currently support. In
addition, our products and technologies must continue to be compatible with new developments in Microsoft technologies. We cannot assure you
that we can maintain such compatibility or that we will not incur significant expenses in connection therewith.
●
implementing appropriate operational and financial systems and controls;
●
expanding our sales and marketing infrastructure and capabilities; and
●
maintaining the commitment of our employees.
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