1032761--12/15/2008--KEYNOTE_SYSTEMS

related topics

{product, market, service}

{system, service, information}

{customer, product, revenue}

{acquisition, growth, future}

{property, intellectual, protect}

{competitive, industry, competition}

{stock, price, operating}

{personnel, key, retain}

{operation, international, foreign}

{control, financial, internal}

{tax, income, asset}

{provision, law, control}

{condition, economic, financial}

{stock, price, share}

The success of our business depends on customers renewing their subscriptions for our services and purchasing additional services as well as obtaining new customers. Our quarterly financial results are subject to significant fluctuations, and if our future results are below the expectations of investors, the price of our common stock may decline. The market price of our common stock is volatile. If we were required to write down all or part of our goodwill, our net earnings and net worth could be materially adversely affected. Our cash and cash equivalents and short-term investments are managed through various banks around the world and the current capital and credit market conditions are extremely volatile, putting pressure on the ability of banks to provide service levels and in some cases to fail, both of which would likely have an adverse affect on our ability to timely access funds. Our operating results could be harmed if sales of Internet subscriptions decline. If our Mobile services decline, we may not be able to grow our revenue and our results of operations will be harmed. Improvements to the infrastructure of the Internet and mobile networks could reduce or eliminate demand for our Internet and Mobile services. 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. Our investment in sales and marketing may not yield increased customers or revenue. Our business could be harmed by adverse economic conditions or reduced spending on information technology. 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 and mobile networks by business and consumers for e-business and communications and if usage of these networks declines, our operating results and working capital would be harmed. 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. A disruption to our network infrastructure 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 which could harm our business. Our business which includes our operating results and financial conditions will be susceptible to additional risks associated with international operations. Industry consolidation may lead to stronger competition and may harm our operating results. Failure to maintain effective internal controls may cause us to delay filing our periodic reports with the SEC and adversely affect our stock price. We may face difficulties assimilating, and may incur costs associated with, any future acquisitions. We have anti-takeover protections that may delay or prevent a change in control that could benefit our stockholders. If we are unable to raise additional capital, our business could be harmed. If the protection of our proprietary technology is inadequate, our competitors may gain access to our technology, and our market share could decline.

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1032761--12/15/2008--KEYNOTE_SYSTEMS_INC