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Support.com 2014 Annual Report Download - page 11

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Table of Contents

• Reduce our dependence on a limited number of partners for a substantial majority of our revenue;

• Successfully license our Nexus SaaS offering;

• Attract and retain qualified management and employees in competitive markets for talent;

• Hire, train, manage and retain our home-based technology specialists and enhance the flexibility of our staffing model in a cost-effective fashion and in quantities sufficient to meet forecast requirements;

• Manage substantial headcount changes over short periods of time;

• Manage contract labor efficiently and effectively;

• Meet revenue targets;

• Maintain gross and operating margins;

• Match staffing levels with demand for services and forecast requirements;

• Obtain bonuses and avoid penalties in contractual arrangements;

• Operate successfully in a time-based pricing model;

• Operate effectively in the small business market;

• Offer subscriptions to our services in a profitable manner;

• Successfully introduce new, and adapt our existing, services and products for consumers and businesses;

• Respond effectively to changes in the market for technology support services;

• Respond effectively to changes in the online advertising markets in which we participate;

• Respond effectively to competition;

• Respond to changes in macroeconomic conditions as they affect our and our partners’ operations;

• Realize benefits of any acquisitions we make;

• Adapt to changes in the markets we serve, including the decline in sales of personal computers, the proliferation of tablets and other mobile devices and the introduction of new devices into the connected

home and the “Internet of Things”;

• Adapt to changes in our industry, including consolidation;

• Respond to government regulations relating to our current and future business;

• Manage and respond to present, threatened, and future litigation; 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.

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 significantly 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 partners;

• Change in or discontinuance of our principal programs with partners;

• Our reliance on a small number of partners for a substantial majority of our revenue;

• Instability or decline in the global macroeconomic climate and its effect on our and our partners’ operations;

• Our ability to successfully license our Nexus SaaS offering;

• The availability and cost-effectiveness of advertising placements for our software products and our ability to respond to changes in the online advertising markets in which we participate;

• Our ability to serve the small business market;

• Our ability to attract and retain qualified management and employees in competitive markets;

• The efficiency and effectiveness of our technology specialists;

• Our ability to effectively match staffing levels with service volumes on a cost-effective basis;

• Our ability to manage contract labor;

• Our ability to hire, train, manage and retain our home-based technology specialists and enhance the flexibility of our staffing model in a cost-effective fashion and in quantities sufficient to meet forecast

requirements;

• Our ability to manage substantial headcount changes over short periods of time;

• Our ability to manage sales costs in programs where we are responsible for sales;

• Our ability to operate successfully in a time-based pricing model;

• Our ability to attract and retain partners;

• The price and mix of products and services we or our competitors offer;