1059103--12/21/2007--ACTIVANT_SOLUTIONS_INC

related topics

{system, service, information}

{debt, indebtedness, cash}

{product, market, service}

{property, intellectual, protect}

{condition, economic, financial}

{acquisition, growth, future}

{operation, natural, condition}

{tax, income, asset}

{operation, international, foreign}

{product, candidate, development}

{customer, product, revenue}

{competitive, industry, competition}

Our new Activant Eagle and Activant Vision product extensions for the automotive parts aftermarket are key elements to our strategy to re-establish growth in the automotive parts aftermarket, and if these product extensions do not gain market acceptance within that market our future growth and operating results could be adversely affected. Our substantial indebtedness could adversely affect our business. We may be unable to service our indebtedness. Our operations are substantially restricted by the terms of our indebtedness, which could adversely affect us. The costs and difficulties of integrating current and future acquisitions could impede our future growth, diminish our competitiveness and materially adversely affect our operations. A significant portion of our total assets consist of goodwill and other intangible assets, which may be subject to impairment charges in the future depending upon the financial results of our business. We rely on third-party information for our electronic automotive parts and applications catalog and we are increasingly facing pressure to present our electronic automotive parts and applications catalog in a flexible format, each of which could expose us to a variety of risks, including increased pressure on our pricing. If our existing customers who operate systems that we no longer actively sell do not upgrade or delay upgrading to our current generation of systems or upgrade to a system not sold by us, our operating results could be materially adversely affected. We compete with many other technology providers in connection with the sale of our business management solutions to the retail and wholesale distribution market and our failure to effectively compete may negatively impact our market share and/or revenue. Because of the varying sales cycles applicable to our systems sales, our quarterly systems revenues and other operating results can be difficult to predict and may fluctuate substantially. Future consolidation among our customers and other businesses in the markets in which we operate may reduce our revenues, which would negatively impact our financial performance. If we fail to adequately protect our proprietary rights and intellectual property, we may incur unanticipated costs and our competitive position may suffer. If we become subject to adverse claims alleging infringement of third-party proprietary rights, we may incur unanticipated costs and our competitive position may suffer. Our software and information services could contain design defects or errors that could affect our reputation, result in significant costs to us and impair our ability to sell our products. If we fail to obtain software and information we license from third parties on acceptable terms, we may experience delays and disruptions that could materially and adversely affect our business and results of operations. Interruptions in our connectivity applications and our systems could disrupt the services that we provide and materially adversely affect our business and results of operations. In the event of a failure in a customer s computer system installed by us, a claim for damages may be made against us regardless of our responsibility for the failure, which could expose us to liability. Because we sell to small and medium-sized retail and wholesale distribution businesses, prolonged unfavorable general economic and market conditions could negatively impact our sales. Fluctuations in the value of foreign currencies could result in currency transaction losses. Natural disasters, terrorist attacks or other catastrophic events could harm our operations and adversely affect our future operating results.

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1059103--12/21/2007--ACTIVANT_SOLUTIONS_INC_/DE/