1268671--3/16/2010--TNS

related topics

{system, service, information}

{product, market, service}

{acquisition, growth, future}

{property, intellectual, protect}

{customer, product, revenue}

{stock, price, operating}

{personnel, key, retain}

{regulation, change, law}

{condition, economic, financial}

{operation, international, foreign}

{tax, income, asset}

{financial, litigation, operation}

{debt, indebtedness, cash}

{cost, contract, operation}

We derive a substantial portion of our revenue from a small number of customers. If one or more of our top five customers were to cease doing business with us, or to substantially reduce its dealings with us, our revenues and earnings could decline. We face significant pressure on the prices for our services from our competitors and customers. Our failure to sustain pricing could impair our ability to maintain profitability or positive cash flow. Our Payments and Telecommunications Services businesses are highly dependent upon our customers' transaction volumes and our ability to expand into new markets. Our efforts to integrate recent or future acquisitions into our operations could be disruptive, and we may not be able to successfully integrate them on a timely basis. Even if we are able to successfully integrate an acquisition into our operations, we may not realize the anticipated cost saving of the acquisition on the timetable currently contemplated, or at all. Recent or future acquisitions could negatively affect our operating results and could dilute the interests of existing stockholders. Our strategy to expand internationally may fail, which may impede our growth and harm our operating results. We conduct business in many international markets with complex and evolving tax rules, which subjects us to international tax compliance risks. Our customers may develop in-house networks and divert part or all of their data communications from our network to their networks. System failures or slowdowns, security breaches and other problems could harm our reputation and business, cause us to lose customers and revenue, and expose us to customer liability. Our customers' inability to successfully implement our services could negatively impact our business. Our capacity limits on current network and application platforms may be difficult to manage and project, and we may not be able to expand or upgrade our systems to meet increased demand or use. Our dependence on third-party providers for network equipment, network connectivity, software, hardware, and hosting or co-location services exposes us to a variety of risks we cannot control. We depend on a limited number of network equipment suppliers and do not have supply contracts. Our inability to obtain necessary network equipment or technical support could harm our business. We may experience fluctuations in quarterly results because of the seasonal nature of our business and other factors outside of our control, which could cause the market price of our common stock to decline. We may not be able to adapt to changing technology and our customers' technology needs. We may be unable to protect our proprietary technology, which would allow competitors to duplicate our services. This would make it more difficult for us to compete with them. We may face claims of infringement of proprietary rights, which could harm our business and operating results. We may not have adequate resources to meet demands resulting from growth. We may lack the capital required to maintain our competitive position or to sustain our growth. Our level of debt could adversely affect our financial health. If we do not compete effectively, we may lose market share to competitors and suffer a decline in revenues. We depend on key personnel. Our stock price may be volatile. Regulatory changes may increase our costs or impair our growth. We face risks related to securities litigation that could have a material adverse effect on our business, financial position and results of operations. We face risks related to movements in foreign exchange rates that could have a material adverse effect on our business, financial position and results of operations. Due to uncertainties associated with the future performance of acquired businesses and assets, we may not realize the full fair value of associated intangible assets and goodwill. Our financial results may be adversely affected if we have to write-off a material portion of our intangible assets or goodwill. The current national and world-wide financial crisis could adversely affect our operating results and stock price in a material manner.

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1268671--3/16/2010--TNS_INC