1032761--12/13/2006--KEYNOTE_SYSTEMS

related topics

{product, market, service}

{system, service, information}

{personnel, key, retain}

{customer, product, revenue}

{acquisition, growth, future}

{regulation, change, law}

{control, financial, internal}

{tax, income, asset}

{provision, law, control}

{operation, international, foreign}

{competitive, industry, competition}

{property, intellectual, protect}

Our operating results could be harmed if sales of Internet subscriptions decline. Our mobile services may not continue to grow as rapidly, which could harm our business. Improvements to the infrastructure of the Internet and mobile networks could reduce or eliminate demand for our Internet and mobile services. The inability of our services to perform properly could result in loss of or delay in revenue, injury to our reputation or other harm to our business. If we do not continually improve our services in response to technological changes, including changes to the Internet and mobile networks, we may encounter difficulties retaining existing customers and attracting new customers. We face competition that could make it difficult for us to acquire and retain customers. A limited number of customers account for a significant portion of our revenue, and the loss of a major customer could harm our operating results. If we do not complement our direct sales force with relationships with other companies to help market our services, we may not be able to grow our business. We must retain qualified personnel in a competitive marketplace, or we may not be able to grow our business. If the market does not accept our professional services, our results of operations could be harmed. The success of our business depends on the continued use of the Internet by business and consumers for e-business and communications. Our network infrastructure could be disrupted by a number of different occurrences, which could impair our ability to serve and retain existing customers or attract new customers. Our measurement computers and mobile devices are located at sites that we do not own or operate, and it could be difficult for us to maintain or repair them if they do not function properly. Others might bring infringement claims against us, our customers or our suppliers that could harm our business. Our business will be susceptible to additional risks associated with international operations. Compliance with new rules and regulations concerning corporate governance may increase our costs and could harm our results of operations. We have anti-takeover protections that may delay or prevent a change in control that could benefit our stockholders. Industry consolidation may lead to increased competition and may harm our operating results. If we fail to maintain the adequacy of our internal controls, our ability to provide accurate financial statements could be impaired and any failure to maintain our internal controls and provide accurate financial statements could cause our stock price to decrease substantially. Our future operating results could be harmed if tax audits result in material differences between that which is reflected in historical income tax provisions and recorded assets and liabilities. We may face difficulties assimilating our acquisitions and may incur costs associated with any future acquisitions.

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1032761--12/13/2006--KEYNOTE_SYSTEMS_INC