Support.com 2008 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2008 Support.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Table of Contents
• The assumptions underlying our Critical Accounting Policies and Estimates, including our assumptions regarding revenue recognition; assumptions
used to estimate the fair value of share-based compensation; assumptions regarding the impairment of goodwill and intangible assets; and expected
accounting for income taxes; and
• The expected effects of the adoption of new accounting standards.
An investment in our stock involves risk, and we caution investors that forward-looking statements are only predictions based on our current expectations
about future events and are not guarantees of future performance. We encourage you to read carefully all information provided in this report and in our other
filings with the SEC before deciding to invest in our stock or to maintain or change your investment. Forward-looking statements are based on information as of
the filing date of this report, and we undertake no obligation to publicly revise or update any forward-looking statement for any reason.
Because forward-looking statements involve risks and uncertainties, there are important factors that may cause actual results to differ materially from our
stated expectations. These factors are described below. This list does not include all risks that could affect our business, and if these or any other risks or
uncertainties materialize, or if our underlying assumptions prove to be inaccurate, actual results could differ materially from past results and from our expected
future results.
We have not been profitable and may not achieve profitability in future periods.
We were not profitable in 2008 and as of December 31, 2008, we had an accumulated deficit of $109.7 million. In addition, we intend to make significant
investments in support of our business in 2009 and we expect to continue to sustain losses in 2009 and subsequent periods. If we fail to achieve revenue growth
as a result of these additional investments or if such revenue growth does not result in our achieving profitability, the market price of our common stock will
likely decline further. A sustained period of losses would also result in an increased usage of cash to fund our operating activities and a corresponding reduction
in our cash balance.
Our quarterly results have in the past, and may in the future, fluctuate significantly.
Our quarterly revenue and operating results have in the past and may in the future fluctuate from quarter to quarter. As a result, we believe that
quarter-to-quarter and year-to-year comparisons of our revenue and operating results may not be accurate indicators of future performance.
Several factors that have contributed or may in the future contribute to fluctuations in our operating results include:
• Demand for our software and services;
• Instability in the global macroeconomic climate and its effect on our, our customers’ and our channel partners’ operations;
• The performance of our channel partners for our Consumer services including retailers;
• Size and timing of customer orders and our ability to recognize revenue in a given quarter;
• The rate of expansion of our Consumer offerings and our investments therein;
• Our ability to increase the efficiency and capacity of our technical support agents;
• Our ability to achieve Segment Operating Profitability in our Enterprise segment;
• Our reliance on a small number of customers and channel partners for a substantial portion of our revenue;
• The price and mix of products and services we or our competitors offer;
13
Source: SUPPORTSOFT INC, 10-K, March 11, 2009