1050180--3/17/2008--PHASE_FORWARD

related topics

{product, market, service}

{customer, product, revenue}

{stock, price, share}

{acquisition, growth, future}

{property, intellectual, protect}

{product, liability, claim}

{system, service, information}

{competitive, industry, competition}

{regulation, government, change}

{stock, price, operating}

{provision, law, control}

{financial, litigation, operation}

{product, candidate, development}

{operation, international, foreign}

{personnel, key, retain}

Risks Related to Our Company Our operating results may fluctuate and could cause the market price of our common stock to fall rapidly and without notice. The loss of one or more major customers could materially and adversely affect our results of operations and financial condition. We may acquire or make investments in companies or technologies that could cause disruption of our business and loss of value or dilution to our stockholders. Our business could be seriously harmed by our dependence on a limited number of suppliers. If we are unable to retain our personnel and hire additional skilled personnel, we may be unable to achieve our goals. We may be required to spend substantial time and expense before we recognize a significant portion of the revenues, if any, attributable to our customer contracts. Interruptions or delays in service from our third-party providers could impair the delivery of our hosted solutions and harm our business. Our software products and hosted solutions are at varying stages of market acceptance and the failure of any of our products to achieve or maintain wide acceptance would harm our operating results. Failure to manage our rapid growth effectively could harm our business. Claims that we or our technologies infringe upon the intellectual property or other proprietary rights of a third party may require us to incur significant costs, to enter into royalty or licensing agreements or to develop or license substitute technology. We may be unable to adequately protect, and we may incur significant costs in defending, our intellectual property and other proprietary rights. We may lose or delay revenues related to our hosted solutions and consulting services if our customers terminate or delay their contracts with us. Failure of our technology and products could harm our business and operating results. The global nature of our business exposes us to multiple risks. Some of our investments are subject to significant market risk. In the course of conducting our business, we possess or could be deemed to possess personal medical information in connection with the conduct of clinical trials, which if we fail to keep properly protected, could subject us to significant liability. We may not be able to obtain capital when desired on favorable terms, if at all, or without dilution to our stockholders. We could incur substantial costs resulting from product liability claims relating to our products or services or our customers' use of our products or services. We and our products and services could be subjected to governmental regulation, requiring us to incur significant compliance costs or to cease offering our products and services. Risks Related to Our Industry We operate in a highly competitive industry and if we are not able to compete effectively, our business and operating results will be harmed. Changing customer or prospective customer requirements could decrease the demand for our products and services, which would adversely affect our revenues and operating results. We depend primarily on the pharmaceutical, biotechnology and medical device industries and are therefore subject to risks relating to changes in these industries. Changes in regulations and regulatory guidance applicable to our customers or potential customers and the approval process for their products may result in our inability to continue to do business. Consolidation among our clients could cause us to lose clients, decrease the market for our products and result in a reduction of our revenues. If entities engaged in clinical trials do not shift from traditional paper-based methods of collecting clinical trial data to electronic system, we may not achieve the market penetration necessary to maintain profitability. Risks Related to our Common Stock The market price and trading volume of our common stock may be volatile, which could result in substantial losses for investors purchasing shares in the public markets and subject us to securities class action litigation. The current market price of our common stock may not be indicative of future market prices and we may be unable to sustain or increase the value of an investment in our common stock. Sales of large blocks of our common stock could cause the market price of our common stock to drop significantly, even if our business is doing well. Delaware law and our corporate documents may prevent or frustrate a change in control or a change in management that stockholders believe is desirable.

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1050180--3/17/2008--PHASE_FORWARD_INC