1183941--12/14/2007--ACTIVIDENTITY_CORP

related topics
{cost, operation, labor}
{stock, price, operating}
{customer, product, revenue}
{tax, income, asset}
{operation, international, foreign}
{product, market, service}
{acquisition, growth, future}
{control, financial, internal}
{personnel, key, retain}
{property, intellectual, protect}
{product, candidate, development}
{condition, economic, financial}
Risk Factors That May Affect Results of Operations and Financial Condition 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. 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. We rely on certain key employees and have faced challenges in the past with employee turnover in senior management. If we are not able to build and maintain a strong management team, our ability to manage and expand our business will be impacted. The market for some of our products is still developing and if the industry adopts standards or a platform 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. Employee turnover could adversely impact our revenues, costs and productivity. We may be adversely affected by operating in international markets. It is difficult to integrate acquired companies, products and technologies into our operations and our inability to do so could greatly lessen the value of any such acquisitions. We have recorded significant write-downs in recent periods for impairment of acquired intangible assets and may have similar write-downs in future periods. Our operating results could suffer if we are subject to intellectual property infringement claims. We may have exposure to additional tax liabilities as a result of inter-company transfer pricing policies

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