1041333--6/14/2006--INDUS_INTERNATIONAL

related topics

{product, market, service}

{operation, international, foreign}

{customer, product, revenue}

{personnel, key, retain}

{property, intellectual, protect}

{system, service, information}

{acquisition, growth, future}

{product, liability, claim}

{cost, operation, labor}

{tax, income, asset}

{stock, price, operating}

{provision, law, control}

{regulation, government, change}

{control, financial, internal}

{cost, contract, operation}

Our operating results have fluctuated in the past and may continue to fluctuate significantly from quarter-to-quarter which could negatively affect our results of operations and our stock price. If the markets for service delivery management solutions and our Service Suite solution do not grow as anticipated or if our service delivery management solutions are not accepted in the marketplace, we may not be able to grow our business. If the market does not accept our new products and enhancements or upgrades to our existing products that we launch from time to time, our operating results and financial condition would be materially adversely affected. Demand for our Asset Suite and Customer Suite products may grow slowly or decrease in upcoming quarters, which may impair our business and could materially adversely affect our results of operations and financial condition. If we are not able to license software to more new customers not currently using our software, our business and long-term prospects could be harmed. As a result of our lengthy sales cycle and the large size of our typical orders from new customers, any delays we experience will affect our operating results. Our ability to use our net operating loss carryforwards to reduce future consolidated taxable income will be subject to annual limitations under U.S. tax rules, which could have a negative effect on financial results in future periods. If we experience delays in product development or the introduction of new products or new versions of existing products, our business and sales will be negatively affected. Delays in our performance of software implementation and other consulting projects may negatively affect our business. Our growth is dependent, in part, upon the successful development of our indirect sales channels and maintaining good working relationships with systems integrators and other technology companies. If we are unable to maintain consistent profitability and positive operating cash flow in future quarters, our business and long-term prospects may be harmed. We have experienced significant change in our executive management team and our board of directors, and the current executive management team and board have only recently begun to work together. Our success depends upon our ability to attract and retain key personnel. Our business may suffer from risks associated with growth through acquisitions, should they occur. The strain on our management may negatively affect our business and our ability to execute our business strategy. The market for our products is highly competitive, and we may be unable to maintain or increase our market share. If we don t respond to rapid technological change and evolving industry standards, we will be unable to compete effectively. If we fail to comply with laws or government regulations, we may be subject to penalties and fines. If we are not successful in Japan, we may not be able to grow revenue and we may need to write off some portion of our capitalized software, which could have a negative effect on our operating results and financial condition. If we are unable to expand our international operations, our operating results and financial condition could be materially and adversely affected. The success of our international operations is subject to many uncertainties. We have only limited protection of our proprietary rights and technology. We may not be successful in avoiding claims that we infringe other s proprietary rights. Our failure to realize the expected benefits of our restructurings, including anticipated cost savings, could result in unfavorable financial results. Assumptions underlying our prior restructuring charges may need to be revised which could have unfavorable financial results. Product liability claims made by our customers, whether successful or not, could be expensive and could harm our business. Anti-takeover provisions in our charter documents and Delaware law could prevent or delay a change in control of Indus, even if a change of control would be beneficial to our stockholders.

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1041333--6/14/2006--INDUS_INTERNATIONAL_INC