1019671--4/14/2009--SEACHANGE_INTERNATIONAL

related topics

{product, market, service}

{stock, price, operating}

{operation, international, foreign}

{customer, product, revenue}

{acquisition, growth, future}

{property, intellectual, protect}

{personnel, key, retain}

{condition, economic, financial}

{competitive, industry, competition}

{tax, income, asset}

{capital, credit, financial}

{system, service, information}

{control, financial, internal}

{loan, real, estate}

Our future success is dependent on the continued development of the video-on-demand market and if video-on-demand does not gain broad market acceptance, our business may not continue to grow. Current economic and market conditions make forecasting difficult. Because our customer base is highly concentrated among a limited number of large customers, the loss of or reduced demand of these customers could have a material adverse effect on our business, financial condition and results of operations. Cancellation or deferral of purchases of our products could cause our operating results to be below the expectations of the public market stock analysts who cover our stock, resulting in a decrease in the market price of our common stock. Timing of significant customer orders may cause our quarterly operating results to fluctuate, making period-to-period comparisons of our operating results less meaningful. Due to the lengthy sales cycle involved in the sale of our products, our quarterly results may vary and should not be relied on as an indication of future performance. If there were a decline in demand or average selling prices for our broadband products, including our Video-On-Demand Systems and Advertising Systems, our revenues and operating results would be materially affected. If we are unable to manage our growth and the related expansion in our operations effectively, our business may be harmed through a diminished ability to monitor and control effectively our operations, and a decrease in the quality of work and innovation of our employees. Because our business is susceptible to risks associated with international operations, we may not be able to maintain or increase international sales of our products. We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows Currency exchange rate fluctuations could reduce our overall profits. Our ability to compete could be jeopardized if we are unable to protect our intellectual property rights from third-party challenges. We have been and in the future could become subject to litigation regarding intellectual property rights, which could seriously harm our business and require us to incur significant legal costs to defend our intellectual property rights. If content providers, such as movie studios, limit the scope of content licensed for use in the digital video-on-demand market, our business, financial condition and results of operations could be negatively affected because the potential market for our products would be more limited than we currently believe and have communicated to the financial markets. If we are unable to successfully introduce new products or enhancements to existing products, our financial condition and operating results may be adversely affected by a decrease in sales of our products. Because we purchase certain material components used in manufacturing our products from sole suppliers and we use a limited number of third party manufacturers to manufacture our products, our business, financial condition and results of operations could be materially adversely affected by a failure of these suppliers or manufacturers. If we are not able to obtain necessary licenses or distribution rights for third-party technology at acceptable prices, or at all, our products could become obsolete or we may not be able to deliver certain product offerings. If we are unable to successfully compete in our marketplace, our financial condition and operating results may be adversely affected. If we fail to respond to rapidly changing technologies related to digital video, our business, financial condition and results of operations would be materially adversely affected because the competitive advantage of our products relative to those of our competitors would decrease. Our financial condition and results of operations could be materially adversely affected by the performance of the companies in which we have made and may in the future make equity investments. Future acquisitions may be difficult to integrate, disrupt our business, dilute stockholder value or divert management attention. We may make future acquisitions or enter into joint ventures that are not successful, which could seriously harm our business. If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings. We may experience risks in our investments due to changes in the market, which could adversely affect the value or liquidity of our investments. The success of our business model could be influenced by changes in the regulatory environment, such as changes that either would limit capital expenditures by television, cable or telecommunications operators or reverse the trend towards deregulation in the industries in which we compete. We may not be able to hire and retain highly skilled employees, particularly which could affect our ability to compete effectively because our business is technology-based. Any weaknesses identified in our system of internal controls by us and our independent registered public accounting firm pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 could have an adverse effect on our business We may have additional tax liabilities. System errors, failures, or interruptions could cause delays in shipments, require design modifications or replacements which may have a negative impact on our business and damage our reputation and customer relationships. Our stock price may be volatile.

Full 10-K form ▸

1019671--4/14/2009--SEACHANGE_INTERNATIONAL_INC