Stamps.com 2009 Annual Report Download - page 14

TABLE OF CONTENTS
Item 1A. Risk Factors.
You should carefully consider the following risks and the other information in this Report and our other filings with the
Securities and Exchange Commission (the “SEC”) before you decide to invest in our company or to maintain or increase your
investment. The risks included in this section are not exhaustive, and additional factors could adversely affect our business and
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 below in this section as well as:
Our results are impacted by the macro economic environment, which is currently in the state of a global economic crisis.
We believe the performance of our PhotoStamps and PC Postage businesses are influenced by macro economic trends. The
United States economy has been experiencing a financial downturn, with some analysts predicting that the world economy may
be entering into a prolonged economic downturn, characterized by high unemployment, limited availability of credit, increased
rates of default and bankruptcy and decreased consumer and business spending. A continuation of this economic downturn could
negatively affect our business, operating results and financial condition in a number of ways. For example, customers may leave
our service, and efforts to attract new customers may also be adversely impacted. In addition, customers may delay or decrease
spending with us or may not pay us, or may delay paying us.
• 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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