1210708--3/15/2006--HUDSON_HIGHLAND_GROUP_INC

related topics
{provision, law, control}
{personnel, key, retain}
{stock, price, operating}
{operation, international, foreign}
{regulation, change, law}
{debt, indebtedness, cash}
{financial, litigation, operation}
{system, service, information}
{customer, product, revenue}
{control, financial, internal}
{competitive, industry, competition}
{acquisition, growth, future}
Since our spin-off in 2003, we have had a history of negative cash flows and operating losses that may continue for at least the next year. Our revenues can vary because our clients can terminate their relationship with us at any time with limited or no penalty. Our operations will be affected by global economic fluctuations. Our credit facility restricts our operating flexibility. We face risks relating to our foreign operations. We face risks associated with acquisitions. We rely on our information systems, and if we lose that technology or fail to further develop our technology, our business could be harmed. Our markets are highly competitive. Our operating results fluctuate from quarter to quarter and therefore quarterly results cannot be used to predict future periods results. Our employees may depart with existing executive search clients. We face restrictions imposed by blocking arrangements in Highland Partners. We may be exposed to employment-related claims, legal liability and costs from both clients and employers that could adversely affect our business, financial condition and results of operations, and our insurance coverage may not cover all of our potential liability. We depend on our key management personnel. There may be volatility in our stock price. Government regulations may result in the prohibition, regulation or restriction of certain types of employment services we offer or in the imposition of additional licensing or tax requirements that may reduce our future earnings. Provisions in our organizational documents and Delaware law will make it more difficult for someone to acquire control of us.

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