1112920--3/27/2008--GLOBALSCAPE

related topics

{system, service, information}

{property, intellectual, protect}

{stock, price, share}

{personnel, key, retain}

{product, market, service}

{stock, price, operating}

{acquisition, growth, future}

{provision, law, control}

{competitive, industry, competition}

{tax, income, asset}

{product, candidate, development}

{customer, product, revenue}

Fluctuations in demand for our products and services are driven by many factors and a decrease in demand for our products could adversely affect our financial results. If we fail to manage our sales and distribution channels effectively or if our partners choose not to market and sell our products to their customers, our operating results could be adversely affected Our products are complex and operate in a wide variety of computer configurations, which could result in errors or product failures. We have grown, and may continue to grow, through acquisitions that give rise to risks and challenges that could adversely affect our future financial results. We utilize open source software in some of our products. If we lose key personnel we may not be able to execute our business plan. We may not be able to compete effectively with larger, better-positioned companies, resulting in lower margins and loss of market share. It may be difficult for us to recruit software developers and other technical and management personnel because we are a relatively small company. Our ability to develop our software will be seriously impaired if we are not able to use our foreign subcontractors. We may incur losses as we attempt to expand our business. Our operations are vulnerable to security breaches that could harm the quality of our products and services or disrupt our ability to deliver our products and services. Increased customer demands on our technical support services may adversely affect our relationships with our customers and our financial results. Our products may expose customers to invasion of privacy, causing customer dissatisfaction. Risks Related to Stock Ownership Our stock price is/may be volatile. Accounting charges may cause fluctuations in our quarterly financial results. We do not pay dividends on our common stock. Anti-takeover provisions in our charter and Delaware law could inhibit others from acquiring us. Our directors and executive officers continue to have substantial control over us Stockholders ownership of our stock may be significantly diluted, affecting the value of the stock. We are vulnerable to claims that our products infringe third-party intellectual property rights particularly because our products are partially developed by independent parties. We may not be able to protect our intellectual property rights. Other companies may own, obtain or claim trademarks that could prevent limit or interfere with our use of our trademarks.

Full 10-K form ▸

1112920--3/27/2008--GLOBALSCAPE_INC