1086195--2/1/2010--ART_TECHNOLOGY_GROUP

related topics

{product, market, service}

{system, service, information}

{acquisition, growth, future}

{regulation, government, change}

{stock, price, operating}

{property, intellectual, protect}

{product, liability, claim}

{cost, contract, operation}

{personnel, key, retain}

{control, financial, internal}

We may not be able to sustain or increase our revenue or profitability on a quarterly or annual basis. Our lengthy sales cycle makes it difficult to predict our quarterly results and causes variability in our operating results. If the market for e-commerce does not continue to grow, then demand for our products and services may decrease. If we fail to adapt to rapid changes in the market for online business applications, then our products and services could become obsolete. We face intense competition in the market for e-commerce applications and services, and we expect competition to intensify in the future. If we fail to remain competitive then our revenues may decline, which could adversely affect our future operating results and our ability to grow our business. If the market for ATG Commerce OnDemand or ATG Optimization Services does not develop or develops more slowly than we expect, then our business could be negatively affected. We may incur significant unanticipated costs and our profitability may suffer if we do not accurately estimate the costs of fixed-price Professional Services engagements. If our clients experience interruptions, delays, or failures in our managed application hosting service or SaaS services, we could incur significant costs and lose revenue opportunities. We depend heavily on key employees in a competitive labor market. We could incur substantial costs defending against a claim of infringement or protecting our intellectual property from infringement. If we fail to maintain our existing client base, then our ability to generate revenues will be harmed. If we fail to address the challenges associated with our international operations, then revenues from our products and services may decline, and the costs of providing our products or services may increase. We may need financing in the future, and any additional financing may result in restrictions on our operations or substantial dilution to our stockholders. We have acquired and intend to acquire other companies or technologies, which could divert our management s attention, result in additional dilution to our stockholders and otherwise disrupt our operations and harm our operating results. If systems integrators or value added resellers reduce their support and implementation of our products, then our revenues may fail to meet expectations and our operating results would suffer. If our software products contain serious errors or defects, then we may lose revenues and market acceptance and may incur costs to defend or settle product liability claims. Government or industry regulations could directly restrict our business or indirectly affect our business by limiting the growth of e-commerce. The Internet has generated privacy concerns that could result in legislation or market perceptions that could result in reduced sales of our products and harm our business.

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1086195--2/1/2010--ART_TECHNOLOGY_GROUP_INC