1094348--3/12/2008--ELOYALTY

related topics

{product, market, service}

{property, intellectual, protect}

{personnel, key, retain}

{cost, operation, labor}

{system, service, information}

{customer, product, revenue}

{stock, price, operating}

{capital, credit, financial}

{regulation, government, change}

{competitive, industry, competition}

We have not realized a profit in eight years and there is no guarantee that we will realize a profit in the foreseeable future. Our financial results are subject to significant fluctuations because of many factors, any of which could adversely affect our stock price. We depend on a limited number of clients for a significant portion of our revenue, and the loss of a significant customer or a substantial decline in the number or scope of projects that we do for a significant customer could have a material adverse effect on our businesses. We depend on good relations with our major clients, and any harm to these good relations may materially and adversely harm our business or our ability to compete effectively. If we do not effectively manage the risks associated with increasingly complex client projects and new service offerings, our profit margins and our financial results may suffer. Our industry is very competitive and, if we fail to compete successfully, our market share and business will be adversely affected. We rely heavily on our senior management team for the success of our business. Our ability to recruit talented professionals and retain our existing professionals, are critical to the success of our business. We must keep pace with the rapid rate of technological innovation and change, as well as evolving industry standards, in order to build our business. We depend on our ability to rapidly learn, use and integrate software and other technology developed by third parties to successfully compete in the CRM market, and our ability to maintain and grow our business may be affected by our ability to maintain strong relationships with CRM software providers and other alliance partners. If growth in the use of CRM technologies declines, demand for our services may decrease. It may be difficult for us to access debt or equity markets to meet our financial needs. We have a limited ability to protect our intellectual property rights, which are important to our success and competitive position. Others could claim that our services, software or solutions infringe upon their intellectual property rights or violate contractual protections. Increasing government regulation could cause us to lose clients or impair our business. The unauthorized disclosure of the confidential client data that we maintain could result in a significant loss of business to eLoyalty and subject us to substantial liability. We must maintain our reputation and expand our name recognition to remain competitive.

Full 10-K form ▸

1094348--3/12/2008--ELOYALTY_CORP