1032346--3/14/2008--IONA_TECHNOLOGIES

related topics

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{tax, income, asset}

{stock, price, operating}

{system, service, information}

{regulation, change, law}

{operation, international, foreign}

{competitive, industry, competition}

{acquisition, growth, future}

{personnel, key, retain}

Our lengthy and variable sales cycle makes it difficult to predict our operating results. We may experience fluctuations in quarterly revenue that could adversely impact our operating results. We have experienced significant variations in operating results and anticipate that we will continue to do so in the future. Our future revenue depends upon the evolution and adoption of Web services and related integration and infrastructure solutions in support of new computing models including SOA. Our open source offerings may never become profitable or achieve widespread acceptance. If we fail to keep pace with rapidly evolving technology and changing customer needs, our business will suffer. The loss of one or more major customers could materially and adversely affect our results of operations and financial condition. We derive a significant amount of revenue from customers in a limited number of industries and our business and results of operations could be adversely affected by significant changes in those industries. We depend on large transactions to derive a significant portion of our revenue, and the delay or loss of any large customer order could adversely affect our quarterly or annual operating results. We may be unable to attract and retain highly qualified personnel. Potential defects or errors in our software products could cause our revenue to decrease, cause us to lose customers, damage our reputation, expose us to litigation and harm our revenues or earnings. If we do not manage our expenses and geographically dispersed operations successfully, we may be unable to respond to changing market conditions. We may be required to delay the recognition of revenue until future periods, which could adversely impact our operating results. We currently derive most of our revenue from a limited number of products. If we do not successfully expand and manage our direct sales force and other distribution channels, we may not be able to increase our revenue. We operate in highly competitive markets and we may be unable to compete successfully. We face various risks associated with our international operations that could cause our operating results to suffer. Acquisitions may be necessary for the continued growth of our business. We may be unable to identify or complete suitable acquisitions, and any acquisitions we do complete may create business difficulties or be dilutive to our current shareholders. If our effective tax rate increases, our business and financial results would be adversely impacted. Our U.S. holders of our ordinary shares or ADSs could suffer adverse tax consequences if we are characterized as a passive foreign investment company. The rights of shareholders in Irish corporations may be more limited than the rights of shareholders in U.S. corporations. We have a limited ability to protect our intellectual property rights, and others could obtain and use our technology without our authorization. If we are unable to obtain rights, or lose existing rights, to use and incorporate third-party technology into our products, we may have to stop selling and shipping products and incur significant development or license expenses to develop or otherwise obtain replacement technology. We may be exposed to significant liability if we infringe upon the intellectual property or proprietary rights of others. Regulatory compliance, including the cost of complying with legislative actions and potential new accounting pronouncements, may result in increased costs that would affect our future financial position and results of operations. We have already incurred, and will continue to incur, significant increased costs associated with our compliance with the internal controls requirements of the Sarbanes-Oxley Act of 2002.

Full 10-K form ▸

1032346--3/14/2008--IONA_TECHNOLOGIES_PLC