1111247--3/14/2007--RIGHTNOW_TECHNOLOGIES

related topics

{product, market, service}

{system, service, information}

{acquisition, growth, future}

{regulation, government, change}

{personnel, key, retain}

{property, intellectual, protect}

{stock, price, operating}

{customer, product, revenue}

{operation, international, foreign}

{regulation, change, law}

{provision, law, control}

{condition, economic, financial}

We may not be able to achieve, sustain or increase profitability in the future. Our recently announced business model changes carry a number of risks which may be harmful to our business. Our quarterly results of operations may fluctuate in the future. If our efforts to enhance existing solutions, introduce new solutions or expand the applications for our products and solutions to broader CRM markets do not succeed, our ability to grow our business will be adversely affected. We face intense competition, and our failure to compete successfully could make it difficult for us to add and retain clients and could reduce or impede the growth of our business. The market for our on demand application services is at an early stage of development, and if it does not develop or develops more slowly than we expect, our business will be harmed. Failure to effectively develop and expand our sales and marketing capabilities could harm our ability to increase our client base and achieve broader market acceptance of our solutions. The majority of our solutions are sold pursuant to time-based agreements, and if our existing clients elect not to renew or to renew on terms less favorable to us, our business, financial condition and results of operations will be adversely affected. We have experienced rapid growth in recent periods. If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service or adequately address competitive challenges. If there are interruptions or delays in our hosting services through third-party error, our own error or the occurrence of unforeseeable events, delivery of our solutions could become impaired, which could harm our relationships with clients and subject us to liability. If the security of our clients confidential information contained in our systems or stored by use of our software is breached or otherwise subjected to unauthorized access, our hosting service or our software may be perceived as not being secure and clients may curtail or stop using our hosting service and our solutions. We have significant international sales and are subject to risks associated with operating in international markets. If we fail to respond effectively to rapidly changing technology and evolving industry standards, particularly in the on demand CRM industry, our solutions may become less competitive or obsolete. Our failure to attract and retain qualified or key personnel may prevent us from effectively developing, marketing, selling, integrating and supporting our products. If our solutions fail to perform properly or if they contain technical defects, our reputation will be harmed, our market share would decline and we could be subject to product liability claims. If we are unable to protect our intellectual property rights, our competitive position could be harmed or we could be required to incur significant expenses to enforce our rights. Our product development efforts may be constrained by the intellectual property of others, and we may become subject to claims of intellectual property infringement, which could be costly and time-consuming. Future acquisitions could disrupt our business and harm our financial condition and results of operations. Changes to financial accounting standards may affect our results of operations and financial condition. The required adoption of SFAS 123R makes stock options a less attractive form of employee compensation, and our use of alternative forms of employee compensation in response to SFAS 123R could adversely affect our ability to attract and retain personnel. We may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs. The success of our products and our hosted business depends on the continued growth and acceptance of the Internet as a business and communications tool, and the related expansion of the Internet infrastructure. Privacy concerns and laws or other domestic or foreign regulations may adversely affect our business or reduce sales of our solutions. Non-solicitation concerns, laws or regulations may adversely affect our clients ability to perform outbound marketing and other email communications, which could reduce sales of our solutions. General economic conditions could adversely affect our clients ability or willingness to purchase our products, which could materially and adversely affect our results of operations. The significant control over stockholder voting matters and our office leases that may be exercised by our founder and Chief Executive Officer will limit your ability to influence corporate actions and may require us to find alternative office space to lease or buy in the future. Anti-takeover provisions in our charter documents and Delaware law could discourage, delay or prevent a change in control of our company and may affect the trading price of our common stock.

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1111247--3/14/2007--RIGHTNOW_TECHNOLOGIES_INC