Juno 2012 Annual Report Download - page 44

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Table of Contents
NetZero 4G mobile broadband service as planned, or that the service will be commercially successful. Delays, additional expenses, the failure to grow
the number of accounts as planned, or the service's failure to be commercially successful, could materially and adversely impact our business, financial
condition, results of operations, and cash flows.


Our Internet access business substantially depends on the availability, capacity, affordability, reliability, and security of our telecommunications
networks. Only a limited number of telecommunications providers offer the network and data services we currently require, and we purchase most of
our telecommunications services from a few providers. In addition, our NetZero 4G mobile broadband service is entirely dependent upon services
acquired from Clearwire and is subject to its limited coverage areas. Some of our telecommunications services are provided pursuant to short-term
agreements that the providers can terminate or elect not to renew. In addition, some telecommunications providers may cease to offer network services
for certain less populated areas, which would reduce the number of providers from which we may purchase services and may entirely eliminate our
ability to purchase services for certain areas. If we are unable to maintain, renew or obtain new agreements with telecommunications providers, our
business, financial condition, results of operations, and cash flows could be materially and adversely affected.
Our dial-up Internet access services also rely on their compatibility with other third-party systems, products and features, including operating
systems. Incompatibility with third-party systems and products could adversely affect our ability to deliver our services or a user's ability to access our
services and could also adversely impact the distribution channels for our services. Our services are dependent on dial-up modems and an increasing
number of computer manufacturers, including certain manufacturers with whom we have distribution relationships, do not pre-load their new computers
with dial-up modems, requiring the user to separately acquire a modem to access our services. There can be no assurance that, as the dial-up Internet
access market declines and new technologies emerge, we will be able to continue to effectively distribute and deliver our services.

None.

Our corporate headquarters, which includes space for the Communications segment, is located in Woodland Hills, California and consists of leased
space of approximately 110,000 square feet. Our FTD segment leases space for call center facilities in Centerbrook, Connecticut and Medford, Oregon,
as well as office space in Quebec, Canada. In addition, our FTD segment leases a flower shop in London, England, concession stands in Horsham,
England and Bridgemere, England and warehouse space in a distribution center in Aurora, Illinois. Our Content & Media segment leases office space in
Seattle, Washington; San Francisco, California; San Mateo, California; Schaumburg, Illinois; Erlangen, Germany; and Berlin, Germany and our
Communications segment leases office space in Fort Lee, New Jersey. We also lease office space in Hyderabad, India, which is used by all of our
segments.
Our FTD segment owns and occupies office space in Downers Grove, Illinois and Sleaford, England. The Credit Agreement includes a security
interest in substantially all of FTD's assets, including a mortgage on the owned real property at the Downers Grove, Illinois location.
We believe that our existing facilities are adequate to meet our current requirements and that suitable additional or substitute space will be available,
as needed, to accommodate any physical expansion of our corporate and operations facilities. For additional information regarding our
42