1070380--8/18/2006--SABA_SOFTWARE

related topics

{product, market, service}

{acquisition, growth, future}

{stock, price, operating}

{stock, price, share}

{property, intellectual, protect}

{control, financial, internal}

{system, service, information}

{cost, operation, labor}

{operation, international, foreign}

{customer, product, revenue}

{personnel, key, retain}

{regulation, change, law}

{product, liability, claim}

{operation, natural, condition}

{provision, law, control}

We have a history of losses, expect future losses and cannot assure you that we will achieve profitability on a consistent basis. Fluctuations in our quarterly results could cause our stock price to experience significant fluctuations or declines. We experience seasonality in our sales, which could cause our quarterly operating results to fluctuate from quarter to quarter. A decline in the price of, or demand for, our products or our related services offerings, would seriously harm our revenues and operating margins. Our products have a long sales cycle, which increases the cost of completing sales and renders completion of sales less predictable. Our performance depends on a new market: human capital management. The Centra acquisition may result in dilution of future earnings per share. Sales of substantial amounts of our common stock in the open market by Centra stockholders could depress our stock price. If we are not successful in integrating Centra, the anticipated benefits of the acquisition may not be realized. Changes in accounting regulations and related interpretations and policies, particularly those related to revenue recognition and stock-based compensation expense, could cause us to defer recognition of revenue or recognize lower revenue or to report lower earnings per share. Failure to achieve and maintain effective internal controls could have a material adverse effect on our business, operating results and stock price. The loss of our senior executives and key personnel would likely cause our business to suffer. Intense competition in our target market could impair our ability to grow and achieve profitability on a consistent basis. We expect competition from a variety of companies. If we are unable to manage the complexity of conducting business globally, our international revenues may suffer. Future acquisitions may result in disruptions to our business if we fail to adequately integrate acquired businesses. Delays in releasing new products or enhanced versions of our existing products could adversely affect our competitive position. If we release products containing defects, we may need to halt further shipments and our business and reputation would be harmed. Claims by third parties that we infringe their intellectual property rights may result in costly litigation. We may not be able to secure necessary funding in the future; additional funding may result in dilution to our stockholders. We may not be able to adequately protect our proprietary technology, and our competitors may be able to offer similar products and services that would harm our competitive position. Our disaster recovery plan does not include redundant systems, and a disaster could severely damage our operations. We outsource the management and maintenance of our OnDemand business to third parties and will depend upon them to provide adequate management and maintenance services. We depend upon continuing relationships with third-party integrators who support our solutions. Our stock price may fluctuate substantially. The anti-takeover provisions in our charter documents could delay or prevent a change in control.

Full 10-K form ▸

1070380--8/18/2006--SABA_SOFTWARE_INC