1108924--6/9/2008--OPNET_TECHNOLOGIES

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{acquisition, growth, future}

{operation, international, foreign}

{stock, price, operating}

{personnel, key, retain}

{regulation, change, law}

{system, service, information}

{loss, insurance, financial}

Our operating results may fluctuate significantly as a result of factors outside of our control, which could cause the market price of our stock to decline. If we do not successfully expand our sales force, we may be unable to increase our sales The market for intelligent network and application management software is new and evolving, and if this market does not develop as anticipated, our revenue could decline. Our customers are primarily in four target groups and our operating results may be adversely affected by changes in one or more of these groups. A decline in information technology spending may result in a decrease in our revenue or lower our growth rate. Our sales to United States government agencies subject us to special risks that could adversely affect our business If our newest software products, particularly those targeted primarily for enterprises and United States government agencies, do not gain widespread market acceptance, our revenue might not increase and could even decline. We may not be able to grow our business if service providers do not buy our products. Our lengthy and variable sales cycle makes it difficult to predict operating results. Our ability to increase our sales may be impaired if we do not expand and manage our indirect distribution channels We may not be able to successfully manage our expanding operations, which could impair our ability to operate profitably If we are unable to introduce new and enhanced products on a timely basis that respond effectively to changing technology, our revenue may decline Our future revenue is substantially dependent upon our existing customers continuing to license additional software, renew maintenance agreements, and purchase additional services Increases in professional services revenue as a percentage of total revenue could decrease overall margin. If we fail to retain our key personnel and attract and retain additional qualified personnel, we might not be able to maintain our current level of revenue. Our international operations subject our business to additional risks, which could cause our sales or profitability to decline We expect to face increased competition, which could cause us to lose sales, resulting in lower profitability If our software products contain errors and we are unable to correct those errors, our reputation could be harmed and our customers could demand refunds from us or assert claims for damages against us Our software products rely on our intellectual property, and any failure to protect our intellectual property could enable our competitors to market products with similar features that may reduce our revenue and could allow the use of our software products by users who have not paid the required license fee Our software products employ technology that may infringe on the proprietary rights of others, and, as a result, we could become liable for significant damages Future interpretations of existing accounting standards could adversely affect our operating results. As with other software vendors, we may be required to delay revenue recognition into future periods, which could adversely affect our operating results If we undertake acquisitions, they may be expensive and disruptive to our business and could cause the market price of our common stock to decline Our software products are subject to changing computing environments, including operating system software and hardware platforms, which could render our products obsolete Due to recent uncertainties in the credit markets, we have been unable to liquidate some holdings of our auction rate securities and as a result, we have incurred unrealized losses from these investments. In addition, given the complexity of auction rate securities and their valuations, our estimates of their fair value may differ from the actual amount we would be able to collect in an ultimate sale.

Full 10-K form ▸

1108924--6/9/2008--OPNET_TECHNOLOGIES_INC