Juno 2014 Annual Report Download - page 14

Table of Contents
consumers' levels of disposable income, consumer debt, and overall consumer confidence. Challenging economic conditions have adversely impacted certain
aspects of our businesses in a number of ways, including reduced demand, more aggressive pricing for similar services and products by our competitors,
decreased spending by advertisers, increased credit risks, increased credit card failures, a loss of customers, and increased use of discounted pricing for certain
of our services and products. Challenging economic conditions may adversely impact our key vendors and customers. Such economic conditions and
decreased consumer spending have, in certain cases, resulted in, and may in the future result in, a variety of negative effects such as a reduction in revenues,
increased costs, lower gross margin and operating margin percentages, increased allowances for doubtful accounts and write-offs of accounts receivable,
increased provisions for excess and obsolete inventories, and recognition of impairments of assets, including goodwill and other intangible and long-lived
assets. Any of the above factors could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
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 Communications and Content & Media 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 Communications and Content & Media 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.
Our business is subject to quarterly fluctuations.
Our results of operations and changes in our key business metrics from period to period have varied in the past and may fluctuate significantly in the
future due to a variety of factors, many of which are outside of our control and difficult to predict. Each of the risk factors discussed in this Item 1A and the
other factors described elsewhere in this Annual Report on Form 10-K and in our other filings with the SEC may affect us from period to period and may
affect our long-term performance. As a result, you should not rely on current results and period-to-period comparisons as an indication of our future
performance. In addition, these factors and challenging economic conditions create difficulties with respect to our ability to forecast our financial
performance and business metrics accurately. We believe that these difficulties in forecasting present even greater challenges for financial analysts who
publish their own estimates of our future financial results and business metrics. We cannot assure you that we will achieve the expectations of, or projections
made by, our management or the financial analysts. In the event we do not achieve such expectations or projections, our financial results and the price of our
common stock could be adversely affected.
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