1124887--3/16/2006--CERIDIAN_CORP

related topics

{system, service, information}

{acquisition, growth, future}

{product, market, service}

{operation, international, foreign}

{regulation, government, change}

{regulation, change, law}

{tax, income, asset}

{control, financial, internal}

{personnel, key, retain}

{customer, product, revenue}

{debt, indebtedness, cash}

{financial, litigation, operation}

{competitive, industry, competition}

Our future revenue and revenue growth will depend on our ability to retain our existing customers, sell additional products and services to our existing customers, introduce new or enhanced products and services and attract and retain new customers. Our ability to improve operating margins in our HRS business will depend on the degree to which and the speed with which we are able to increase operational efficiencies and reduce operating costs. The markets we serve are highly competitive and may attract new competitors or cause current competitors to focus more on these markets, which could adversely affect our business. The loss of our contract with the U.S. Department of Defense would likely have an adverse affect on our HRS business. Any breach of our IT security or loss of customer data could adversely affect our businesses. Political and economic factors may adversely affect our business and operating results. Government regulation changes on timing or amount of remittances and changes in interest rates may reduce our investment income from customer deposits. Changes in or the elimination of governmental regulations may negatively impact our revenue and earnings and the way we conduct our business. Our investments in our business may not improve our business performance. Our investments may not improve the performance of our technology. Any problems or delays we may experience in implementing system upgrades and conversions could adversely affect our business. Our ability to remain competitive depends on our speed to market with new or enhanced technology. In the event of a catastrophic occurrence our ability to protect client data and maintain operations may be impaired. Our success is dependent on the retention and acquisition of talented people and the skills and abilities of our management team and key personnel. We are subject to risks related to our international operations, which may adversely affect our operating results. Our business and results of operations are dependent on several vendors and suppliers, the loss of whom could adversely affect our consolidated results of operations. The failure of our HRS business to comply with applicable laws could result in substantial taxes, penalties and liabilities that could adversely affect our business. Litigation and governmental inquiries, investigations and proceedings may adversely affect our financial results. Our ability to implement and execute our strategic plans may not be successful and, accordingly, we may not be successful in achieving our strategic goals. Our strategy to make acquisitions of and investments in complementary businesses, products and technologies may not be successful and involves risks that could adversely affect our business and operating results. Our $250 million revolving credit facility and $150 million Comdata receivables securitization facility may restrict our operating flexibility. We are reporting a material weakness in our internal control over financial reporting and as a result, we have concluded, pursuant to the Sarbanes-Oxley Act of 2002, that our internal control over financial reporting at December 31, 2005 was not effective.

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1124887--3/16/2006--CERIDIAN_CORP_/DE/