1020579--3/28/2008--OMTOOL

related topics

{product, market, service}

{acquisition, growth, future}

{customer, product, revenue}

{property, intellectual, protect}

{control, financial, internal}

{stock, price, operating}

{personnel, key, retain}

{stock, price, share}

{operation, international, foreign}

{operation, natural, condition}

Given the nature of our business, we may not be able to obtain sufficient or attractive financing, should that become necessary. We have experienced operating losses and our future operating results are uncertain and difficult to predict. Our products are concentrated in the electronic document exchange market and we are dependent on increased sales of our AccuRoute, Healthcare Suite and Genifax products. The markets for our products are subject to rapid technological change and we may not be able to keep pace with evolving industry standards or end-user requirements. We depend on the revenue generated by sales of our AccuRoute product and would be negatively impacted if market interest whether in the legal, financial services or healthcare vertical market were to decline or fail to grow as expected. Were we to suffer an unexpectedly large decline in our legacy fax business, our financial condition and results of operations would be significantly impaired. We may not successfully complete acquisitions or integrate acquisitions we do make, which could impair our ability to compete and could harm our operating results. Our common stock was delisted from The Nasdaq Capital Market, which made our stock significantly less liquid and may affect its value and could significantly impair our ability to raise capital. The markets in which we sell our products are characterized by intense and growing competition and our future success is dependent on our ability to distinguish our products from those of our competitors and reach our target customers. Our business is subject to seasonality and fluctuations on a quarterly and annual basis due to the long sales cycle for our products and numerous other factors and, therefore, our results may vary from quarter-to-quarter and year-to-year. In addition to direct sales, we utilize indirect sales and distribution channels and strategic alliances with compatible partners in order to broaden sales of our products. Any failure on our part to form and leverage relationships with these indirect sales and distribution channel partners could have a material adverse affect on our business and results of operations. The success of our business is dependent on our ability to expand our sales internationally, which will subject us to regulatory, exchange rate and other risks that might hinder our ability to meet our targets for international sales and impair our results of operation. Our future success depends on our ability to manage the growth and expansion of our business. We are in the process of identifying and analyzing strategic, financial and operating alternatives and any such alternatives may not lead to the achievement of desired results. We may fail to maintain adequate internal control over financial reporting, be unable to complete our assessment of the effectiveness of our internal controls over financial reporting in a timely manner, or our independent registered public accounting firm may not attest to our assessment of our internal control over financial reporting. We may be unable to adequately protect our proprietary rights. Other companies may claim that we infringe their intellectual property or proprietary rights, which could cause us to incur significant expenses or be prevented from selling our products. Our reliance on a sole hardware supplier could adversely impact our business. We are dependent on our key personnel and any inability to retain or hire key personnel could impact our business and results of operations.

Full 10-K form ▸

1020579--3/28/2008--OMTOOL_LTD