1008817--2/23/2010--SAPIENT

related topics

{cost, contract, operation}

{system, service, information}

{personnel, key, retain}

{operation, international, foreign}

{control, financial, internal}

{tax, income, asset}

{property, intellectual, protect}

{stock, price, operating}

{cost, operation, labor}

{operation, natural, condition}

{regulation, government, change}

Our international operations and Global Distributed Delivery ( GDD ) model subject us to increased risk. Our business, financial condition and results of operations may be materially impacted by military actions, global terrorism, natural disasters and political unrest. If we do not attract and retain qualified professional staff, we may be unable to perform adequately our client engagements and could be limited in accepting new client engagements. We earn revenues, incur costs and maintain cash balances in multiple currencies, and currency fluctuations affect our financial results. Due to our current inability to sell certain of our Auction Rate Securities ( ARS ), the securities may experience additional declines in value, and funds associated with the securities may be inaccessible for more than 12 months, which may have a material adverse impact to our financial condition. We have significant fixed operating costs, which may be difficult to adjust in response to unanticipated fluctuations in revenues. Our profits may decrease and/or we may incur significant unanticipated costs if we do not accurately estimate the costs of fixed-price engagements. Our profitability will be adversely impacted if we are unable to maintain our pricing and utilization rates as well as control our costs. We partner with third parties on certain complex engagements in which our performance depends upon, and may be adversely impacted by, the performance of such third parties. Our clients could unexpectedly terminate their contracts for our services. We may be liable to our clients for substantial damages caused by our unauthorized disclosures of confidential information, breaches of data security, failure to remedy system failures or other material contract breaches. Our services may infringe the intellectual property rights of third parties, and create liability for us as well as harm our reputation and client relationships. We may be unable to protect our proprietary methodology. Our stock price is volatile and may result in substantial losses for investors. Our former Chairmen and Chief Executive Officers have significant voting power and may effectively control the outcome of any stockholder vote. We are dependent on our key employees. We may be unable to achieve anticipated benefits from acquisitions. The failure to successfully and timely implement certain financial system changes to improve operating efficiency and enhance our reporting controls could harm our business. A failure to maintain effective internal controls over financial reporting could have a material adverse impact on the Company. Changes in our effective tax rate or tax liability may have an adverse effect on our results of operations.

Full 10-K form ▸

1008817--2/23/2010--SAPIENT_CORP