1169445--3/16/2007--COMPUTER_PROGRAMS_&_SYSTEMS

related topics

{system, service, information}

{property, intellectual, protect}

{personnel, key, retain}

{product, market, service}

{operation, natural, condition}

{product, liability, claim}

{cost, regulation, environmental}

Competition with companies that have greater financial, technical and marketing resources than we have could result in loss of customers and/or a lowering of prices for our products, causing a decrease in our revenues and/or market share. Our failure to develop new products or enhance current products in response to market demands could adversely impact our competitive position and require substantial capital resources to correct. Potential regulation of our products as medical devices by the U.S. Food and Drug Administration could increase our costs, delay the introduction of new products and slow our revenue growth. Governmental regulations relating to patient confidentiality and other matters could increase our costs. Our products assist clinical decision-making and related care by capturing, maintaining and reporting relevant patient data. If our products fail to provide accurate and timely information, our customers could assert claims against us that could result in substantial cost to us, harm our reputation in the industry and cause demand for our products to decline. Breaches of security in our system could result in customer claims against us and harm to our reputation causing us to incur expenses and/or lose customers. New products that we introduce or enhancements to our existing products may contain undetected errors or problems that could affect customer satisfaction and cause a decrease in revenues. Our facilities are located in an area vulnerable to hurricanes and tropical storms, and the occurrence of a severe hurricane, similar storm or other natural disaster could cause damage to our facilities and equipment, which could require us to cease or limit our operations. Interruptions in our power supply and/or telecommunications capabilities could disrupt our operations, cause us to lose revenues and/or increase our expenses. If we are unable to attract and retain qualified customer service and support personnel our business and operating results will suffer. We do not have employment or non-competition agreements with our key personnel, and their departure could harm our future success. We have limited protection of our intellectual property and, if we fail to adequately protect our intellectual property, we may not be able to compete effectively. In the event our products infringe on the intellectual property rights of third-parties, our business may suffer if we are sued for infringement or if we cannot obtain licenses to these rights on commercially acceptable terms.

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1169445--3/16/2007--COMPUTER_PROGRAMS_&_SYSTEMS_INC