1043533--9/30/2008--ABOVENET

related topics

{control, financial, internal}

{system, service, information}

{financial, litigation, operation}

{regulation, change, law}

{product, market, service}

{competitive, industry, competition}

{customer, product, revenue}

{debt, indebtedness, cash}

{acquisition, growth, future}

{personnel, key, retain}

{stock, price, operating}

{provision, law, control}

{stock, price, share}

{cost, regulation, environmental}

We have a limited history of financial reporting We are not in compliance with our reporting obligations under the Securities Exchange Act of 1934. This Annual Report on Form 10-K is not compliant with our reporting obligations. Our prior SEC Investigation may negatively affect us. Our revenue includes certain fees that are not predictable. In prior years, we incurred significant net losses and we cannot assure you that we will generate net income or that we will sustain positive operating cash flow in the future We have significant exposure to the financial services industry. We have incurred secured indebtedness If our operations do not produce sufficient cash flow to fund our operating expenses and capital requirements, we may be required to raise additional capital through a debt or equity financing. The concerns of our customers or prospective customers regarding our long-term financial status may discourage some of them from purchasing services from us in the future. We may not be able to develop and maintain systems and controls to operate our business effectively. Our common stock is not listed and it may be difficult for our stockholders to sell their shares. We may not be able to successfully implement our business strategy because we depend on factors beyond our control, which could adversely affect our results of operations. Our success depends on our ability to compete effectively in our industry Rapid technological changes could affect the continued use of our services. We are dependent on key personnel. We depend on third party service providers for important parts of our business operations and the failure of those third parties to provide their services could negatively affect our services. Changes in our traffic patterns or industry practice could result in increasing peering costs for our IP network. Customer agreements contain service level and delivery obligations that could subject us to liability or the loss of revenue. We are required to maintain, repair, upgrade and replace our network and facilities, and our failure to do so could harm our business. Requests to relocate our network can result in additional expenses. Governmental regulation may negatively affect our operations. Government regulation of the Internet may subject us to liability. We cannot predict our future tax liabilities. If we become subject to increased levels of taxation, our financial condition and results of operations could be adversely affected. Our inability to produce audited financial statements has prevented us from filing our federal and state income taxes in a timely manner. Our franchises, licenses, permits, rights-of-way, conduit leases and property leases could be canceled or not renewed, which would impair our ability to provide our services. Stockholders affiliated with certain of our directors own a significant percentage of our shares, which will limit your ability to influence corporate matters. Our charter documents, our Shareholders Rights Plan and Delaware law may inhibit a takeover that stockholders may consider favorable.

Full 10-K form ▸

1043533--9/30/2008--ABOVENET_INC