Juno 2013 Annual Report Download - page 16

Table of Contents
development, integration and implementation efforts are not successful, or such new business initiatives, services, products, features, applications, or
functionality are not accepted by consumers or commercially successful, our business, financial condition, results of operations, and cash flows could
be materially and adversely impacted.
We may be unable to maintain or grow our advertising revenues. Reduced advertising revenues may reduce our profits.
Advertising revenues are a key component of revenues and profitability for our Content & Media and Communications segments. Factors that
have caused, or may cause in the future, our advertising revenues to fluctuate include, without limitation, changes in the number of visitors to our
websites, active accounts or consumers purchasing our services and products, the effect of, changes to, or terminations of key advertising relationships,
changes to our websites and advertising inventory, changes in applicable laws, regulations or business practices, including those related to behavioral or
targeted advertising, user privacy and taxation, changes in business models, changes in the online advertising market, changes in the economy,
advertisers' budgeting and buying patterns, competition, and changes in usage of our services. Decreases in our advertising revenues are likely to
adversely impact our profitability.
Advertising revenues generated by our Content & Media and Communications segments have been fluctuating and may decline in the future as a
result of various factors, including, without limitation, the risks and uncertainties discussed above, in other risk factors, and elsewhere in this Annual
Report on Form 10-K. Any or all of the above factors have caused, and could continue to cause, our advertising revenues and profits to significantly
decline in the future.
Significant problems with our key systems or those of our third-party vendors could have a material adverse effect on our business, financial
condition, results of operations, and cash flows.
The systems underlying the operations of each of our business segments are complex and diverse, and must efficiently integrate with third-party
systems, such as credit card processors. Key systems include, without limitation, billing; website and database management; customer support;
telecommunications network management; advertisement serving and management systems; and internal financial systems. Some of these systems, such
as customer support for our Internet access and loyalty marketing businesses are outsourced to third parties, and other systems are not redundant. In
addition, some of our backup systems have never been operated as a primary system. We have experienced systems problems in the past. For example,
in the fourth quarter of 2013, the Classmates website experienced outages that occurred intermittently over a one-week period, as well as stability issues.
We or our third-party vendors may experience problems in the future. All information technology and communication systems are subject to reliability
issues, integration and compatibility concerns, and security-threatening intrusions. The continued and uninterrupted performance of our key systems is
critical to our success. Unanticipated problems affecting these systems could cause interruptions in our services. In addition, if our third-party vendors
face financial or other difficulties, our business could be adversely impacted. Any significant errors, damage, failures, interruptions, delays, or other
problems with our systems, our backup systems or our third-party vendors or their systems could adversely impact our ability to satisfy our customers
or operate our websites, and could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
In addition, our Content & Media and Communications businesses outsource a significant portion of their live customer support functions. These
businesses rely on customer support vendors, and we maintain only a small number of internal customer support personnel for these businesses. Our
internal customer support personnel are not equipped to provide the necessary range of customer support functions in the event that our vendors
unexpectedly become unable or unwilling to provide these services to us.
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