Juno 2014 Annual Report Download - page 18

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Table of Contents
compared to channels that have lower or no associated marketing costs, or if our marketing efforts do not result in our services and products being
prominently ranked in Internet search listings, our business, financial condition, results of operations, and cash flows could be materially and adversely
impacted.
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, integrate and retain 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. For example, Robert J. Taragan, the President of our Communications Segment, departed our
company in February 2015. In addition, we do not carry key-person life insurance on any of our employees. The loss of any of our key officers or other
employees, or our inability to attract, integrate and retain qualified employees, could require us to dedicate significant financial and other resources to such
personnel matters, disrupt our operations and seriously harm our operations and business.
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. In addition, 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 Communications business outsources a significant portion of its live customer support functions. We rely on customer support vendors,
and we maintain only a small number of internal customer support personnel for our 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. Any significant problems with our customer support vendors or our internal customer support personnel could adversely impact our ability to satisfy
our customers, and could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
We may be unsuccessful at acquiring additional businesses, services or technologies. Even if we complete an acquisition, it may not improve our results of
operations and may also adversely impact our business, financial condition and cash flows.
Acquisitions of businesses, services, or technologies may provide us with an opportunity to diversify the services and products we offer, leverage our
assets and core competencies, complement our existing businesses, or expand our geographic reach.
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