Stamps.com 2008 Annual Report Download - page 12

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financial performance. We operate in a very competitive and rapidly changing environment. New risk factors emerge from
time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk
factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially
from those contained in any forward-looking statements If any of the following risks actually occur, our business, results of
operations or financial condition would likely suffer. In that case, the trading price of our common stock could decline, and you
may lose all or part of your investment.
This Report contains forward-looking statements based on the current expectations, assumptions, estimates and projections
about us and the Internet. These forward-looking statements involve risks and uncertainties. Our actual results could differ
materially from those discussed in these forward-looking statements as a result of many factors, including those described in this
section and elsewhere in this Report. We do not undertake to update publicly any forward-looking statements for any reason,
even if new information becomes available or other events occur in the future.
Risks Related to Our Business
We may not successfully implement strategies to increase the adoption of our services and products, which would limit our
growth, adversely affect our business and cause the price of our common stock to decline.
Our continuing profitability depends on our ability to successfully implement our strategy of increasing the adoption of our
services and products. Factors that might cause our revenues, margins and operating results to fluctuate include the factors
described in the subheadings below as well as:
We may implement pricing plans and promotions that may adversely affect our future revenues and margins.
Our ability to generate gross margins depends upon our ability to generate significant revenues from a large base of active
customers. In order to attract customers in the future, we may run special promotions and offers, such as trial periods, discounts
on fees, postage and supplies, and other promotions. In addition, we may offer new pricing plans for new and existing customers.
We cannot be sure that customers will be receptive to future fee structures and special promotions that we may implement. Even
though we have established a sizeable customer base, we still may not generate sufficient gross margins to remain profitable. In
addition, our ability to generate revenues or sustain profitability could be adversely affected by the special promotions or
additional changes to our pricing plans.
• The costs of our marketing programs to establish and promote our brands;
• The demand for our services and products;
• Our ability to develop and maintain strategic distribution relationships;
• The number, timing and significance of new products or services introduced by us and by our competitors;
• Our ability to develop, market and introduce new and enhanced products and services on a timely basis;
• The level of service and price competition;
• Our operating expenses;
• USPS regulation and policies relating to PC Postage and PhotoStamps; and
• General economic factors.
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If we do not successfully attract and retain skilled personnel for permanent management and other key personnel positions,
we may not be able to effectively implement our business plan.
Our success depends largely on the skills, experience and performance of the members of our senior management and other
key personnel. Any of these individuals can terminate his or her employment with us at any time. If we lose key employees and
are unable to replace them with qualified individuals, our business and operating results could be seriously harmed. In addition,
our future success will depend largely on our ability to continue attracting and retaining highly skilled personnel. As a result, we
may be unable to successfully attract, assimilate or retain qualified personnel. Further, we may be unable to retain the employees
we currently employ or attract additional qualified personnel to replace those key employees that may depart. The failure to
attract and retain the necessary personnel could seriously harm our business, financial condition and results of operations.