1102541--2/26/2010--EARTHLINK

related topics

{system, service, information}

{product, market, service}

{tax, income, asset}

{cost, operation, labor}

{property, intellectual, protect}

{cost, contract, operation}

{provision, law, control}

{condition, economic, financial}

{debt, indebtedness, cash}

{stock, price, share}

{personnel, key, retain}

{financial, litigation, operation}

{product, candidate, development}

{regulation, change, law}

{competitive, industry, competition}

{stock, price, operating}

{acquisition, growth, future}

{investment, property, distribution}

Risks Related to Our Business and Industry The continued decline of our consumer access subscribers, combined with the change in mix of our consumer access subscriber base from narrowband to broadband, will adversely affect our results of operations. We will have less ability in the future to implement cost reduction initiatives to offset our revenue declines, which will adversely affect our results of operations. We face significant competition that could reduce our profitability. Adverse economic conditions may harm our business. We may not be able to execute our business strategy for our Business Services segment, which could adversely impact our results of operations and cash flows. Our commercial and alliance arrangements may not be renewed or may not generate expected benefits, which could adversely affect our results of operations. Our business is dependent on the availability of third-party telecommunications service providers. We may be unable to retain sufficient qualified personnel, and the loss of any of our key executive officers could adversely affect us. We may be unsuccessful in making and integrating acquisitions into our business, which could result in operating difficulties, losses and other adverse consequences. If we do not continue to innovate and provide products and services that are useful to subscribers, we may not remain competitive, and our revenues and operating results could suffer. Our business may suffer if third parties used for customer service and technical support and certain billing services are unable to provide these services or terminate their relationships with us. Interruption or failure of our network and information systems and other technologies could impair our ability to provide our services, which could damage our reputation and harm our operating results. Government regulations could adversely affect our business or force us to change our business practices. Privacy concerns relating to our business could damage our reputation and deter current and potential users from using our services. We may not be able to protect our intellectual property. We may be accused of infringing upon the intellectual property rights of third parties, which is costly to defend and could limit our ability to use certain technologies in the future. If we are unable to successfully defend against legal actions, we could face substantial liabilities. Our business depends on effective business support systems, processes and personnel. As a result of our continuing review of our business, we may have to undertake further restructuring plans that would require additional charges, including incurring facility exit and restructuring charges. We may be required to recognize additional impairment charges on our goodwill and intangible assets, which would adversely affect our results of operations and financial position. We may have exposure to greater than anticipated tax liabilities and the use of our net operating losses and certain other tax attributes could be limited in the future. Risks Related to Ownership of Our Common Stock We may change our cash return strategy. Our stock price may be volatile. Our indebtedness could adversely affect our financial health and limit our ability to react to changes in our industry. Provisions of our second restated certificate of incorporation, amended and restated bylaws and other elements of our capital structure could limit our share price and delay a change of management.

Full 10-K form ▸

1102541--2/26/2010--EARTHLINK_INC