Support.com 2011 Annual Report Download - page 17


• Declines in revenue and increases in losses;
• 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.



A fundamental requirement for online communications, transactions and support is the secure collection, storage and transmission of
confidential information. Our systems collect and store confidential and personal information of our individual customers as well as our channel
partners and their customers’ users, including credit card information, and our employees and contractors may access and use that information in the
course of providing services. In addition, we collect and retain personal information of our employees in the ordinary course of our business. We and
our third-party contractors use commercially available technologies to secure this information. Despite these measures, third parties may attempt to
breach the security of our data or that of our customers. In addition, errors in the storage or transmission of data could breach the security of that
information. We may be liable to our customers for any breach in security and any breach could subject us to governmental or administrative
proceedings or monetary penalties, damage our relationships with channel partners and harm our business and reputation. Also, computers are
vulnerable to computer viruses, physical or electronic break-ins and similar disruptions, which could lead to interruptions, delays or loss of data. We
may be required to expend significant capital and other resources to comply with mandatory privacy and security standards required by law, industry
standard, or contract, and to further protect against security breaches or to correct problems caused by any security breach.

Certain of our customers use credit cards to pay for our services and products. We may suffer losses as a result of orders placed with
fraudulent credit cards or other payment data. Our failure to detect or control payment fraud could have an adverse effect on our results of operations.
We are also subject to payment card association operating standards and requirements, as in effect from time to time. Compliance with those standards
requires us to invest in network and systems infrastructure and processes. Failure to comply with these rules or requirements may subject us to fines,
potential contractual liabilities, and other costs, resulting in harm to our business and results of operations.

Reductions in unit volumes of sales for computers and other devices we support, or in the prices of such equipment, could adversely affect our
business. We offer both services that are attached to the sales of new computers and other devices, and services designed to fix existing computers and
other devices. Declines in the unit volumes sold of these devices or declines in the pricing of such devices could adversely affect demand for our
services or our revenue mix, either of which would harm our operating results. Further, we do not support all types of computers and devices,
meaning that we must select and focus on certain operating systems and technology standards for computers, smart phones, and other devices. We
may not be successful in supporting popular equipment and platforms, consumers and small businesses may trend toward use of equipment we do not
support, and the process of migration away from platforms we support may decrease the market for our services and products. Any of these risks
could harm our operating results.



Our software contains features that allow our Personal Technology Experts and other personnel to access, control, monitor and collect
information from computers running our software. Federal, state and foreign government bodies and agencies, however, have adopted or are
considering adopting laws and regulations restricting or otherwise regulating the collection, use and disclosure of personal information obtained from
consumers and individuals. Those regulations could require costly compliance measures, could reduce the efficiency of our operations, or could
require us to modify or cease to provide our systems or services. Liability for violation of, costs of compliance with, and other burdens imposed by
such laws and regulations may limit the use and adoption of our services and reduce overall demand for them. Even the perception of privacy
concerns, whether or not valid, may harm our reputation and inhibit adoption of our solutions by current and future customers. In addition, we may
face claims about invasion of privacy or inappropriate disclosure, use, storage, or loss of information obtained from our customers. Any imposition of
liability could harm our reputation, cause us to lose customers and cause our operating results to suffer.
15
EDGAR Stream is a copyright of Issuer Direct Corporation, all rights reserved.