1005387--3/24/2006--GENSYM

related topics

{customer, product, revenue}

{product, market, service}

{product, candidate, development}

{stock, price, operating}

{stock, price, share}

{system, service, information}

{property, intellectual, protect}

{regulation, change, law}

{provision, law, control}

{control, financial, internal}

{condition, economic, financial}

{operation, international, foreign}

We have a history of operating losses, and we may not be profitable. We are increasingly reliant on fees from maintenance contracts and renewals. If we fail to retain our maintenance customers, our revenues may be adversely affected. We rely heavily on indirect distribution channels and strategic partner relationships for the sales of our products. If these relationships are disrupted, our revenues may be adversely affected. We depend heavily on our sales and marketing force. Our quarterly operating results may vary, leading to fluctuations in trading prices for our common stock and possible liquidity problems. Our business may suffer if we fail to remain competitive with other companies offering similar products and services. Our business may suffer if we fail to address the challenges associated with international operations. We rely heavily on revenues from our G2 and G2-based products. If demand for the G2 product declines, our revenues may be adversely affected. Our software is complex and may contain undetected errors. Such errors could cause costly delays in product introduction or require costly software design modifications. Sales of our products are highly dependent on our customers capital expenditure budgets. If an economic downturn causes our customers to reduce their capital expenditures, our revenues may be adversely affected. Our business may be adversely affected if we fail to develop new products and respond to changes in technology. Our research and development in new reasoning technologies may not lead to profitable commercialization. Our stock price may be volatile and an investment in our common stock could suffer a decline in value. Compliance with changing regulation of corporate governance and public disclosure may result in additional risks and expenses. Our common stock is quoted on the OTC Bulletin Board, which limits the liquidity and could negatively affect the value of our common stock. Because we rely heavily upon proprietary technology, our business could be adversely affected if we are unable to protect our proprietary technology or if third parties successfully assert infringement claims against us. Provisions in our corporate documents and Delaware law could delay or prevent a change of control of the company, even if that change would be beneficial to our stockholders.

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1005387--3/24/2006--GENSYM_CORP