1082506--9/9/2009--OPENWAVE_SYSTEMS

related topics

{customer, product, revenue}

{operation, international, foreign}

{system, service, information}

{product, market, service}

{property, intellectual, protect}

{control, financial, internal}

{acquisition, growth, future}

{stock, price, operating}

{stock, price, share}

{product, candidate, development}

{provision, law, control}

{debt, indebtedness, cash}

{personnel, key, retain}

{loan, real, estate}

{competitive, industry, competition}

{financial, litigation, operation}

{product, liability, claim}

Risks Related to Our Business We are in a product transition phase and we may not be able to adequately develop or market products. We rely upon a small number of customers for a significant portion of our revenues, and the failure to retain and expand our relationships with these customers could adversely affect our business. We have a history of losses and we may not be able to achieve or maintain consistent profitability. Our industry changes rapidly as a result of technological and product developments, which may quickly render our products and services less desirable or even obsolete. If we are unable or unsuccessful in supplementing our product offerings, our revenue and operating results may be materially adversely affected. Our communications service provider customers face implementation and support challenges in introducing Internet-based services, which may slow their rate of adoption or implementation of the services our products enable. Our business depends on continued investment and improvement in communication networks by our customers. We depend on recruiting and retaining key management and technical personnel with telecommunications and Internet software experience who are integral in developing, marketing and selling our products. Our market is highly competitive and our inability to compete successfully could adversely affect our operating results. Our sales cycles are long, subjecting us to the loss or deferral of anticipated orders and related revenue. Our business is subject to the risks of international operations since we depend on international sales, and any decrease in international sales would adversely affect our operating results. Our customer contracts lack uniformity and often are particularly complex, which subjects us to business and other risks. We rely on estimates to determine arrangement fee revenue recognition for a particular reporting period. If our estimates change, or our customers do not accept deliverables, future expected revenues could adversely change. Demand for our technology depends on the operator maintaining a central role in the mobile value chain, not being circumvented by emerging players who offer services directly to subscribers. We may not be successful in forming or maintaining strategic alliances with other companies, which could adversely affect our product offerings and sales. Our software products may contain defects or errors, which could result in rejection of our products, delays in shipment of our products, damage to our reputation, product liability and lost revenues. Our intellectual property could be misappropriated, which could force us to become involved in expensive and time-consuming litigation. Our products may infringe the intellectual property rights of others, subjecting us to claims for infringement, payment of license royalties or other damages. We may be unable to effectively manage future growth, if any, that we may achieve. We may pursue acquisitions or investments in complementary technologies and businesses, which could harm our operating results and may disrupt our business. The security provided by our products could be breached, in which case our reputation, business, financial condition and operating results could suffer. Our business and future operating results may be adversely affected by events outside our control. Our business in countries with a history of corruption and transactions with foreign governments, including with government owned or controlled wireless carriers, increase the risks associated with our international activities. We have incurred and will continue to incur increased costs as a result of being a public company. We face litigation risks that could have a material adverse effect on our company. Our investments in marketable securities are subject to market risks which may cause losses and affect the liquidity of these investments. Adverse changes in general economic or political conditions could adversely affect our operating results. Our current credit agreement contains various covenants that limit our discretion in the operation of our business, which could have a materially adverse effect on our business, financial condition and results of operations. Risks Related to Owning Our Common Stock Our operating results are subject to significant fluctuations, and this may cause our stock price to decline in future periods. Provisions of our corporate documents and Delaware law may discourage an acquisition of our business, which could affect our stock price. Our stock price has been and is likely to continue to be volatile and you may not be able to resell shares of our common stock at or above the price you paid, if at all.

Full 10-K form ▸

1082506--9/9/2009--OPENWAVE_SYSTEMS_INC