Juno 2013 Annual Report Download - page 22

Table of Contents
acquisition, and our attempts at integrating an acquired business may not be successful. Acquiring a business, service or technology involves many
operational and financial risks, including risks relating to:
•disruption of our ongoing business and significant diversion of resources and management time from day-to-day responsibilities;
•acquisition financings that involve the issuance of potentially dilutive equity or the incurrence of debt;
•reduction of cash and other resources available for operations and other uses;
•exposure to risks specific to the acquired business, service or technology to which we are not currently exposed;
•risks of entering markets in which we have little or no direct prior experience;
•unforeseen obligations or liabilities;
•difficulty assimilating the acquired customer bases, technologies and operations;
•difficulty assimilating and retaining management and employees of the acquired business;
•potential impairment of relationships with users, customers or vendors as a result of changes in management of the acquired business or
other factors;
•large write-offs either at the time of the acquisition or in the future, the incurrence of restructuring and other exit costs, the amortization
of identifiable intangible assets, and the impairment of amounts capitalized as goodwill, intangible assets and other long-lived assets; and
•lack of, or inadequate, controls, policies and procedures appropriate for a public company, and the time, cost and difficulties related to the
implementation of such controls, policies and procedures or the remediation of any deficiencies.
In addition, an acquisition of a foreign business involves risks in addition to those set forth above, including risks associated with foreign currency
exchange rates, potentially unfamiliar economic, political and regulatory environments, and integration difficulties due to language, cultural and
geographic differences. Any of these risks could harm our business, financial condition, results of operations, and cash flows.
Fluctuations in foreign currency exchange rates could adversely affect comparisons of our operating results.
We transact business in different foreign currencies and may be exposed to financial market risk resulting from fluctuations in foreign currency
exchange rates, including the Euro, the Indian Rupee, the Swedish Krona, and the Swiss Franc. Revenues and expenses in foreign currencies translate
into higher or lower revenues and expenses in U.S. Dollars as the U.S. Dollar weakens or strengthens against such other currencies. Substantially all of
the revenues of our international businesses are received, and substantially all expenses are incurred, in currencies other than the U.S. Dollar, which
increases or decreases the related U.S. Dollar-reported revenues and expenses depending on the fluctuations in foreign currency exchange rates. Certain
of our key business metrics, such as the Content & Media segment's average monthly revenue per pay account (also referred to as "ARPU"), are
similarly affected by such foreign currency exchange rate fluctuations. Changes in global economic conditions, market factors, and governmental
actions, among other factors, can affect the value of these currencies in relation to the U.S. Dollar. A strengthening of the U.S. Dollar compared to these
currencies and, in particular, to the Euro, has had, and in future periods could have, an adverse effect on the comparisons of our revenues and operating
income against prior periods. We cannot accurately predict the impact of future foreign currency exchange rate fluctuations on our operating results, and
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