1008817--2/29/2008--SAPIENT

related topics

{cost, operation, labor}

{cost, contract, operation}

{system, service, information}

{personnel, key, retain}

{control, financial, internal}

{property, intellectual, protect}

{stock, price, operating}

{tax, income, asset}

{operation, international, foreign}

{financial, litigation, operation}

{provision, law, control}

{regulation, government, change}

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, the securities may experience an other-than-temporary decline in value, and funds associated with the securities may be inaccessible in excess of 12 months, resulting in a material adverse impact to our income and results of operations. We have significant fixed operating costs, which may be difficult to adjust in response to unanticipated fluctuations in revenues. We may reduce our profits and/or 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 damages caused by unauthorized disclosures of confidential information or by our failure to remedy system failures. 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 and joint ventures. If we do not effectively improve our operational and financial processes and systems, our ability to achieve efficiencies and cost savings may be delayed and our results of operations may be adversely impacted. 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. We face risks related to the restatement of our financial statements and the ongoing SEC investigation regarding our historical stock-based compensation practices. Our corporate governance provisions may deter a financially attractive takeover attempt.

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1008817--2/29/2008--SAPIENT_CORP