1183941--12/10/2010--ACTIVIDENTITY

related topics

{product, candidate, development}

{regulation, change, law}

{control, financial, internal}

{property, intellectual, protect}

{stock, price, operating}

{cost, regulation, environmental}

{customer, product, revenue}

{condition, economic, financial}

{tax, income, asset}

{product, market, service}

{acquisition, growth, future}

{cost, operation, labor}

{personnel, key, retain}

{operation, international, foreign}

Risk Factors That May Affect Results of Operations and Financial Condition Our business and stock price may be materially and adversely affected if the merger with ASSA ABLOY is not completed. Restrictions on the conduct of our business prior to the completion of the pending merger with ASSA ABLOY may have a negative impact on our operating results. We have a history of losses and we may experience losses in the foreseeable future. Our cost-reduction initiatives may not result in the anticipated savings or more efficient operations and may harm our long-term viability. Our operating results may continue to be adversely affected by the current economic environment, unfavorable market and economic conditions. We derive revenue from only a limited number of products and we do not have a diversified product base. Our customer base is highly concentrated and the loss of any one of these customers or delay in anticipated orders could adversely affect our business. Our quarterly gross and net margins are difficult to predict, and if we miss quarterly financial expectations, our stock price could decline. We have a long and often complicated sales cycle, which can result in significant revenue fluctuations between periods. The market for some of our products is still developing and if the industry adopts standards or platforms different from our platform, then our competitive position would be negatively affected. We rely on strategic relationships with other companies to develop and market our products. If we are unable to enter into additional relationships, or if we lose an existing relationship, our business could be harmed. We may be adversely affected by operating in international markets. We rely on certain key employees. If we are not able to build and maintain a strong management team, our ability to manage and expand our business will be impacted. Employee turnover could adversely impact our revenue, costs and productivity. We have recorded significant write downs in recent periods for impairment of acquired intangible assets and goodwill and may have similar write downs in future periods. While we believe we currently have effective internal control over financial reporting, we may identify a material weakness in our internal control over financial reporting that could cause investors to lose confidence in the reliability of our financial statements and result in a decrease in the value of our securities. Implementation of the new FASB rules and the issuance of new laws or other accounting regulations, or reinterpretation of existing laws or regulations, could materially impact our stated results. We must comply with European governmental regulations setting environmental standards. We or our suppliers may be impacted by new regulations related to climate change. The protection of our intellectual property rights is crucial to our business and, if third parties use our intellectual property without our consent, our business could be damaged. Our operating results could suffer if we are subject to intellectual property infringement claims. We may pursue strategic acquisitions and investments that could have an adverse effect on our business if they are unsuccessful. Changes in, or interpretations of, tax rules and regulations may adversely affect our effect tax rates. We may have exposure to additional tax liabilities as a result of inter-company transfer pricing policies.

Full 10-K form ▸

1183941--12/10/2010--ACTIVIDENTITY_CORP