Support.com 2008 Annual Report Download - page 20

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Table of Contents
third-party onsite service providers as directly as we would our own employees. In addition, outsourced services may be more costly. We also face the risk that
disruptions or delays in outsourcers’ communications and information technology infrastructure could cause lengthy interruptions in the availability of our
services. Any of these risks could harm our operating results.
We may engage in investments, dispositions, acquisitions or other strategic transactions that could reduce our cash balance, divert management
attention and prove difficult to integrate with our business.
We may engage in acquisitions or divestitures of certain assets, businesses, products or technologies, or in other strategic initiatives. For example, in 2008
we completed the acquisition of YourTechOnline.com. Acquisitions, divestitures and other strategic transactions are inherently risky. Certain transactions may be
subject to closing conditions, which may not be satisfied, and transactions may not be completed, even after public announcement. Acquisitions may require
further use of our cash resources, the issuance of equity or debt securities, or the incurrence of other forms of debt, any of which could harm our financial
condition, results of operations, or our interest expense and leverage. If we issue equity securities, current stockholders’ percentage ownership and earnings per
share may be diluted. The process of integrating employees, businesses, technologies, services or products may result in unforeseen operating difficulties and
expenditures. Dispositions could significantly alter the revenue, costs and nature of our business. Acquisitions and divestitures could involve a number of other
potential risks to our business, including the following, any of which could harm our business results:
• Unanticipated costs and liabilities and unforeseen accounting charges or fluctuations;
• Delays and difficulties in delivery of products and services;
• Failure to effectively integrate or separate management information systems, personnel, research and development, marketing, sales and support
operations;
• Loss of key employees;
• Economic dilution to gross and operating profit;
• Diversion of management’s attention from other business concerns and disruption of our ongoing business;
• Difficulty in maintaining controls and procedures;
• Uncertainty on the part of our existing customers about our ability to operate after a transaction;
• Loss of customers;
• Loss of alliances;
• Declines in revenue and increases in losses following divestitures;
• Failure to realize the potential financial or strategic benefits of the acquisition or divestiture; and
• Failure to successfully further develop the combined or remaining technology, resulting in the impairment of amounts recorded as goodwill or other
intangible assets.
Disruptions in our information technology and service delivery infrastructure and operations, including interruptions or delays in service from our
third-party web hosting provider, could impair the delivery of our services and harm our business.
Our operations, and in particular our hosted products and Consumer services, depend on the continuing operation of our information technology and
communication systems and those of our external service providers. Any damage to or failure of those systems could result in interruptions in our service, which
could reduce our revenues and profits and damage our reputation. We serve certain of our customers through a third-party hosting facility located in the United
States. We do not control the operation of this facility. It may experience unplanned
17
Source: SUPPORTSOFT INC, 10-K, March 11, 2009