Support.com 2011 Annual Report Download - page 12

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• Our expectations regarding unit volumes, pricing and other factors in the market for computers and other devices, and the effects of such
factors on our business;
• 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.
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We have not been profitable since 2005. We intend to make significant investments in support of our business, and may continue to sustain
losses in the future notwithstanding our efforts to achieve profitability. If we fail to achieve revenue growth as a result of our additional investments or
if such revenue growth does not result in our achieving profitability, the market price of our common stock will likely decline. We expect to continue
to consume cash until we achieve profitability. A sustained period of losses would result in an increased usage of cash to fund our operating activities
and a corresponding reduction in our cash balance.
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Our technology-enabled services business was launched in 2007 to provide services that help consumers and small businesses with their
technology needs. Prior to 2007, we operated an enterprise software business focused on technical support, which we sold in the second quarter of
2009. We are executing a plan to grow our business by providing premium technology services and software to customers both through channel
partners and directly. We may not be able to offer these services and software products successfully. Our Personal Technology Experts and sales
agents are generally home-based, which requires a high degree of coordination and quality control of employees working from diverse and remote
locations. We are currently experiencing financial losses in our business and we may to continue to use cash and incur costs to support our growth
initiatives. Our investments, which typically are made in advance of revenue, may not yield increased revenue to offset these expenses. As a result of
these factors, the future revenue and income potential of our business is uncertain. Any evaluation of our business and our prospects must be
considered in light of these factors and the risks and uncertainties often encountered by companies in our early stage of development. Some of these
risks and uncertainties relate to our ability to do the following:
• Maintain our current relationships, and develop new relationships, with channel partners on acceptable terms or at all;
• Reach consumers and small businesses directly in a cost-effective fashion;
• Hire, train, manage and retain our home-based Personal Technology Experts and sales agents and expand the flexibility of our staffing
model in a cost-effective fashion;
• Manage contract labor efficiently and effectively;
• Meet anticipated growth targets;
• Match staffing levels with demand for services;
• Manage our business to provide services and sales on an efficient basis in order to achieve profitability;
• Offer subscriptions to our services in a profitable manner;
• Successfully introduce new, and adapt our existing, services and products for consumers and small businesses;
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