1134203--4/17/2006--TALEO

related topics

{product, market, service}

{system, service, information}

{regulation, change, law}

{property, intellectual, protect}

{acquisition, growth, future}

{stock, price, operating}

{customer, product, revenue}

{cost, operation, labor}

{operation, international, foreign}

{control, financial, internal}

{personnel, key, retain}

{cost, regulation, environmental}

{condition, economic, financial}

{provision, law, control}

If our efforts to attract new customers are not successful, our revenue growth will be adversely affected. Our financial performance may be difficult to forecast as a result of our historical focus on large customers and the long sales cycle associated with our solutions. If we fail to develop or acquire new products or enhance our existing products to meet the needs of our existing and future customers, our sales will decline. Fluctuation in the demand for temporary workers will affect the revenue associated with our Taleo Contingent solution, which may harm our business and operating results. If we do not compete effectively with companies offering talent management solutions, our revenue may not grow and could decline. We may lose sales opportunities if we do not successfully develop and maintain strategic relationships to sell and deliver our solutions. The potential mergers of our competitors or other similar strategic alliances could weaken our competitive position or reduce our revenue. If we are required to reduce our prices to compete successfully, our margins and operating results could be adversely affected. If our security measures are breached and unauthorized access is obtained to customer data, customers may curtail or stop their use of our solutions, which would harm our reputation, operating results, and financial condition. Defects or errors in our products could affect our reputation, result in significant costs to us and impair our ability to sell our products, which would harm our business. We participate in a new and evolving market, which increases the difficulty of evaluating the effectiveness of our current business strategy and future prospects. Widespread market acceptance of the on demand delivery model is uncertain, and if it does not continue to develop, or develops more slowly than we expect, our business may be harmed. If we fail to manage our hosting infrastructure capacity satisfactorily, our existing customers may experience service outages and our new customers may experience delays in the deployment of our solution. Any significant disruption in our computing and communications infrastructure could harm our reputation, result in a loss of customers and adversely affect our business. We must retain key employees and recruit qualified technical and sales personnel or our future success and business could be harmed. We currently derive a material portion of our revenue from international operations and expect to expand our international operations. However, we do not have substantial experience in international markets, and may not achieve the expected results. Fluctuations in the exchange rate of foreign currencies could result in currency transaction losses, which could harm our operating results and financial condition. If we fail to defend our proprietary rights aggressively, our competitive advantage could be impaired and we may lose valuable assets, experience reduced revenue, and incur costly litigation fees to protect our rights. Our results of operations may be adversely affected if we are subject to a protracted infringement claim or a claim that results in a significant award for damages. We employ technology licensed from third parties for use in or with our solutions, and the loss or inability to maintain these licenses or errors in the software we license could result in increased costs, or reduced service levels, which would adversely affect our business. Failure to implement the appropriate controls and procedures to manage our growth could harm our ability to expand our business, our operating results, and our overall financial condition. We currently have deficiencies in our internal control over financial reporting and have restated our previously issued financial results. If we are unable to improve and maintain the quality of our system of internal control over financial reporting, any deficiencies could materially and adversely affect our ability to provide timely and accurate financial information about our company. Difficulties that we may encounter in managing changes in the size of our business could affect our operating results adversely. Failure to manage our customer deployments effectively could increase our expenses and cause customer dissatisfaction. Acquisitions and investments present many risks, and we may not realize the anticipated financial and strategic goals for any such transactions, which would harm our business, operating results and overall financial condition. In addition, we have limited experience in acquiring and integrating other companies. Unfavorable economic conditions and reductions in information technology spending could limit our ability to grow our business. Our reported financial results may be adversely affected by changes in generally accepted accounting principles. If tax benefits currently available under the tax laws of Quebec are reduced or repealed, or if we have taken an incorrect position with respect to tax matters under discussion with the Canadian Revenue Authority, our business could suffer. Evolving regulation of the Internet may increase our expenditures related to compliance efforts, which may adversely affect our financial condition. Current and future litigation against us could be costly and time consuming to defend. If we fail to develop our brand cost-effectively, our customers may not recognize our brand and we may incur significant expenses, which would harm our business and financial condition. Our stock price is likely to be volatile and could decline, resulting in a substantial loss on your investment. Our principal stockholders will have a controlling influence over our business affairs and may make business decisions with which you disagree and which may adversely affect the value of your investment. We may need to raise additional capital, which may not be available, thereby adversely affecting our ability to operate our business. Provisions in our charter documents and Delaware law may delay or prevent an acquisition of our company. The requirements of being a public company has been, and may continue to be, a strain on our resources, which may adversely affect our business and financial condition. Holders of our Class B common stock vote with our Class A common stock, which dilutes the voting power of our Class A common stockholders. We have recently signed a lease on a new headquarters facility that is incremental to an existing lease on our current headquarters facility. If we are not able to successfully sublease our existing headquarters facility, or our growth rates slow and we then have excess real estate at our new headquarters facility, we may need to recognize a loss on our facilities leases.

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1134203--4/17/2006--TALEO_CORP