Juno 2013 Annual Report Download - page 23

Table of Contents
such fluctuations could negatively impact the comparisons of such results against prior periods as well as our business, financial condition, results of
operations, and cash flows.
We have a new president and chief executive officer, as well as a new general counsel, and our chief financial officer has announced his
resignation. Any failure or delay in successfully transitioning their duties and responsibilities could have a negative impact on our business.
Francis Lobo became President and Chief Executive Officer of United Online, Inc. and a member of its Board of Directors on November 5, 2013,
and Gail Shulman became its Executive Vice President and General Counsel on January 7, 2014. Neil P. Edwards, the Executive Vice President and
Chief Financial Officer of United Online, Inc., has announced his resignation effective as of March 14, 2014. In addition, the employment of the
Company's Chief Personnel Officer also terminated in January 2014. Our success depends to a significant extent on the performance of our senior
management. Any failure or delays in the transition of duties and responsibilities to, and the assumption and execution of such duties and
responsibilities by the new members of senior management could have a negative impact on our business, financial condition, results of operations, and
cash flows.
Our ability to operate our business could be seriously harmed if we lose members of our senior management team or other key employees or we
are not able to attract qualified new personnel.
Our business is largely dependent on the efforts and abilities of our senior management and other key personnel. Any of our officers or employees
can terminate his or her employment relationship at any time. Our officers have employment agreements pursuant to which they may be entitled to
separation benefits in connection with a termination of employment under certain circumstances. As discussed in the preceding risk factor, several of
our key officers, including our president and chief executive officer, our general counsel, our chief financial officer, and our chief personnel officer,
recently left, or announced their intention to leave, the Company. The loss of any of our key officers or other employees, or our inability to attract or
retain qualified employees could seriously harm our business, financial condition, results of operations, and cash flows. We do not carry key-person life
insurance on any of our employees.
We may not realize the benefits associated with our assets and may be required to record a significant charge to earnings if we are required to
expense certain costs or impair our assets.
We have capitalized goodwill and identifiable intangible assets in connection with our acquisitions and certain business initiatives. We perform an
impairment test of our goodwill annually during the fourth quarter of our fiscal year or when events occur or circumstances change that would more
likely than not indicate that goodwill or any such assets might be permanently impaired. If our acquisitions or business initiatives are not commercially
successful or, if due to economic or other conditions, our assumptions regarding the performance of our businesses or business initiatives are not
achieved, we would likely be required to record impairment charges which would negatively impact our financial condition and results of operations.
We have experienced impairment charges in the past, including a $52.9 million goodwill impairment charge in the year ended December 31, 2013 with
respect to our Classmates reporting unit. Given the current economic and competitive environment and the uncertainties regarding the impact on our
businesses, there can be no assurance that our estimates and assumptions regarding the duration of the challenging economic conditions, or the period or
strength of recovery, made for purposes of our goodwill and identifiable intangible assets impairment testing will prove to be accurate predictions of the
future. If our assumptions regarding forecasted revenues or growth rates of certain reporting units or other factors are not achieved or are revised
downward, we may be required to record additional impairment charges in future periods. If our operating segments change in the future, such change
may result in changes to our reporting units for impairment testing purposes, which may result in additional impairment charges. In addition, from time
to time, we record
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