Support.com 2011 Annual Report Download - page 13

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• Grow our software business using existing and new monetization models;
• Successfully scale revenue in the small business market, directly and through channel partners;
• Respond to changes in macroeconomic conditions as they affect our and our channel partners’ operations;
• Respond effectively to competition;
• Realize benefits of any acquisitions we make;
• Adapt to changes in the markets we serve, including the proliferation of tablets and other devices;
• Adapt to changes in our industry, including consolidation;
• Respond to government regulations relating to our business;
• Attract and retain qualified management and employees; and
• Manage our expanding operations and implement and improve our operational, financial and management controls.
If we are unable to address these risks, our business, results of operations and prospects could suffer.
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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 services and products;
• The performance of our channel partners;
• Instability or decline in the global macroeconomic climate and its effect on our and our channel partners’ operations;
• Our ability to increase the efficiency of our Personal Technology Experts and sales agents;
• Our ability to effectively match staffing levels with service volumes on a cost-effective basis, particularly with newer partners using
models, such as subscriptions, without adequate or comparable historical data for forecasting purposes;
• Our ability to manage contract labor;
• Our ability to manage sales costs in programs where we perform sales;
• Our reliance on a relatively small number of channel partners for a substantial portion of our revenue;
• Our ability to attract and retain customers and channel partners;
• Our ability to reach customers directly in a cost effective manner;
• Our ability to serve the small business market;
• The availability and cost-effectiveness of advertising placements for our software products;
• The price and mix of products and services we or our competitors offer;
• The rate of expansion of our offerings and our investments therein;
• Our ability to successfully monetize customers who receive free versions of our software;
• Usage rates on the subscriptions we offer;
• Changes in the PC/CE markets relating to unit volume, pricing and other factors, including changes driven by the growing popularity of
tablets and other new devices, and the effects of such changes on our business;
• Our ability to adapt to our customers’ needs in a market space defined by frequent technological change;
• Seasonal trends and changes resulting from consumer spending patterns;
• The amount and timing of operating costs and capital expenditures in our business;
• Diversion of management’s attention from other business concerns and disruption of our ongoing business activities as a result of
acquisitions or divestitures by us;
• Potential losses on investments, or other losses from financial instruments we may hold that are exposed to market risk; and
• The exercise of judgment by our management in making accounting decisions in accordance with our accounting policies.
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From time to time, we provide guidance related to our future financial performance. In addition, financial analysts may publish their own
expectations of our future financial performance. Because our quarterly revenue and our operating results fluctuate and are difficult to predict, future
financial performance is difficult to predict. We have in the past, including the third quarter of 2011, failed to meet our guidance for a particular period
or analyst expectations for our guidance for future periods and our stock price has declined. Generally, the market prices of technology companies
have been extremely volatile. Stock prices of many technology companies have often fluctuated in a manner unrelated or disproportionate to the
operating performance of such companies. In the past, following periods of market volatility, stockholders have often initiated securities class action
litigation relating to the stock trading and price volatility of the technology company in question. Any securities litigation we may become involved in
could result in our incurring substantial defense costs and diverting resources and the attention of management from our business.
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