1092458--3/16/2007--TRIZETTO_GROUP

related topics

{system, service, information}

{customer, product, revenue}

{product, market, service}

{acquisition, growth, future}

{regulation, government, change}

{stock, price, share}

{debt, indebtedness, cash}

{property, intellectual, protect}

{stock, price, operating}

{personnel, key, retain}

{provision, law, control}

{control, financial, internal}

We cannot predict if we will be able to sustain our positive net income. Revenue from a limited number of customers comprises a significant portion of our total revenue, and if these customers terminate or modify existing contracts or experience business difficulties, it could adversely affect our earnings. Our business is changing rapidly, which could cause our quarterly operating results to vary and our stock price to fluctuate. The intensifying competition we face from both established entities and new entries in the market may adversely affect our revenue and profitability. Our sales and implementation cycles are long and unpredictable. Consolidation of healthcare payer organizations and benefits administrators could decrease the number of our existing and potential customers. Some of our significant customers may develop their own software solutions, which could decrease the demand for our products. We depend on our software application vendor relationships, and if our software application vendors terminate or modify existing contracts or experience business difficulties, or if we are unable to establish new relationships with additional software application vendors, it could harm our business. We rely on third-party software vendors for components of our software products. We have sustained rapid growth, and our inability to manage this growth could harm our business. Our acquisition strategy may disrupt our business and require additional financing. Our need for additional financing is uncertain as is our ability to raise capital if required. Our business will suffer if our software products contain errors. We could lose customers and revenue if we fail to meet contractual obligations including performance standards and other material obligations. If our ability to expand our network and computing infrastructure is constrained in any way, we could lose customers and damage our operating results. Performance or security problems with our systems could damage our business. Our success depends on our ability to attract, retain and motivate management and other key personnel. We rely on an adequate supply and performance of computer hardware and related equipment from third parties to provide services to larger customers and any significant interruption in the availability or performance of third-party hardware and related equipment could adversely affect our ability to deliver our products to certain customers on a timely basis. Any failure or inability to protect our technology and confidential information could adversely affect our business. Our products may infringe the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products. If our consulting services revenue does not grow substantially, our revenue growth could be adversely impacted. The insolvency of our customers or the inability of our customers to pay for our services could negatively affect our financial condition. Changes in government regulation of the healthcare industry could adversely affect our business. Part of our business is subject to government regulation relating to the Internet that could impair our operations. Increased leverage as a result of our convertible note offering may harm our financial condition and results of operations. We have certain repurchase and payment obligations under the Notes and we may not be able to repurchase such Notes or pay the amounts due upon conversion of the Notes when necessary. Our common stock price has been, and may continue to be, volatile and our shareholders may not be able to resell shares of our stock at or above the price paid for such shares. Future issuances of common stock may depress the trading price of our common stock. Our stockholder rights plan and charter documents could make it more difficult for a third party to acquire us, even if doing so would be beneficial to our shareholders.

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1092458--3/16/2007--TRIZETTO_GROUP_INC