1008817--3/16/2006--SAPIENT_CORP

related topics
{cost, contract, operation}
{cost, operation, labor}
{system, service, information}
{personnel, key, retain}
{operation, international, foreign}
{property, intellectual, protect}
{stock, price, operating}
{regulation, government, change}
Our international operations and Global Distributed Delivery model subject us to increased risk. 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. We have significant fixed operating costs, which may be difficult to adjust in response to unanticipated fluctuations in revenues. We may lose money 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. We put a portion of our fees at risk based on project results and may not earn these fees if we do not succeed. Our stock price is volatile and may result in substantial losses for investors. Our co-Chairmen and co-CEOs 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.

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