1099944--3/30/2007--INFORTE

related topics

{product, market, service}

{stock, price, operating}

{financial, litigation, operation}

{customer, product, revenue}

{acquisition, growth, future}

{provision, law, control}

{cost, contract, operation}

{regulation, change, law}

{interest, director, officer}

{personnel, key, retain}

{control, financial, internal}

{tax, income, asset}

{system, service, information}

{condition, economic, financial}

{operation, international, foreign}

{competitive, industry, competition}

If we fail to identify and successfully transition to the latest and most demanded solutions or keep up with an evolving industry, we will not compete successfully for clients and our profits may decrease. If we fail to satisfy our clients expectations, our existing and continuing business could be adversely affected. We may be unable to hire and retain employees who are highly skilled, which would impair our ability to perform client services, generate revenue and maintain profitability. If we fail to adequately manage rapid changes in demand, our profitability and cash flow may be reduced or eliminated. If our marketing relationships with software vendors deteriorate, we would lose their client referrals. If these vendors continue to increase their professional services revenue, our revenue could be adversely affected. If we are unable to rapidly integrate third-party software, we may not be able to deliver solutions to our clients on a timely basis, resulting in lost revenues and potential liability. Our revenues could be negatively affected by the loss of a large client or our failure to collect a large account receivable. If we estimate incorrectly the time required to complete our projects, we will lose money on fixed-price contracts. Fluctuations in our quarterly revenues and operating results due to our size and client demand may lead to reduced prices for our stock. Others could claim that Inforte or one of its affiliates or a non-affiliated company providing rights to Inforte or one of its affiliates, infringes on their intellectual property rights, which may result in substantial costs, diversion of resources and management attention, harm to our reputation and impairment of our profitability or the value of our investments. Because we are newer and smaller than many of our competitors, we may not have the resources to effectively compete, causing our revenues to decline. Our expansion and growth internationally could negatively affect our business. As offshore development becomes accepted as a viable alternative to doing work domestically, our pricing and revenue may be negatively affected. Recent changes in the executive team and strategic modifications in business structure could lead to inferior financial results if this transition does not occur smoothly. Current or future legislative and regulatory requirements, such as the Sarbanes-Oxley Act of 2002, may lead to increased insurance, accounting, legal and other costs, which may cause our profitability to decline. We may not be able to integrate successfully the business of recently acquired companies with Inforte s business. If an event occurs or circumstances change that would more likely than not reduce the fair value of an acquired reporting unit below its carrying value we may have to charge a portion of any associated goodwill balance against profits, causing current net earning to become significantly lower or negative. If confidential personal data is lost, destroyed or mishandled in a way giving access to unauthorized users, Inforte, and its affiliate companies may suffer as a result of negative publicity and legal action against the company. RISKS RELATED TO OUR INDUSTRY If the rate of adoption of advanced information technology slows substantially, our revenues may decrease. Geopolitical instability may cause our revenues to decrease. RISKS RELATED TO THE OWNERSHIP OF OUR COMMON STOCK Our stock price could be extremely volatile, like many technology stocks. Volatility of our stock price could result in expensive class action litigation. Officers and directors own a significant percentage of outstanding shares and, as a group, may control a vote of stockholders. The authorization of preferred stock, a staggered board of directors and supermajority voting requirements will make a takeover attempt more difficult, even if the takeover would be favorable for stockholders. Our share price could be adversely affected if we are unable to maintain effective internal controls.

Full 10-K form ▸

1099944--3/30/2007--INFORTE_CORP