1287258--3/11/2008--PLANETOUT

related topics

{system, service, information}

{customer, product, revenue}

{property, intellectual, protect}

{personnel, key, retain}

{financial, litigation, operation}

{control, financial, internal}

{stock, price, operating}

{product, market, service}

{acquisition, growth, future}

{loan, real, estate}

{operation, natural, condition}

{debt, indebtedness, cash}

{regulation, government, change}

If our efforts to attract and retain subscribers are not successful, our revenue will decrease. Our core revenue-generating software applications are written on a technology platform that has become increasingly difficult to support. As we convert our applications onto more stable, supportable platforms a process that requires time and financial investment we face the risk of not being able to maintain or enhance the functionality of our websites. As a result we may lose market share and our revenue may further decline. We expect our operating results to fluctuate, which may lead to volatility in our stock price. Our limited operating history makes it difficult to evaluate our business. Recent and potential future acquisitions and divestitures could result in operating difficulties and unanticipated liabilities. If we do not continue to attract and retain qualified personnel, our business may suffer. We may need additional capital and may not be able to raise additional funds on favorable terms or at all, which could limit our ability to continue operations, dilute the ownership interests of existing stockholders, cause us to seek business dispositions on unfavorable terms, or cause us to consider curtailing or ceasing operations. Any significant disruption in service on our websites or in our computer and communications hardware and software systems could harm our business. If we are unable to compete effectively, we may lose market share and our revenue may decline. If we are unable to protect our domain names, our reputation and brand could be harmed if third parties gain rights to, or use, these domain names in a manner that would confuse or impair our ability to attract and retain customers. If we fail to adequately protect our trademarks and other proprietary rights, or if we get involved in intellectual property litigation, our revenue may decline and our expenses may increase. Existing or future government regulation in the United States and other countries could limit our growth and result in loss of revenue. The risks of transmitting confidential information online, including credit card information, may discourage customers from subscribing to our services or purchasing goods from us. If we are unable to provide satisfactory customer service, we could lose subscribers. We may be the target of negative publicity campaigns or other actions by advocacy groups that could disrupt our operations because we serve the LGBT community. Adult content in our media properties may be the target of negative publicity campaigns or subject us to restrictive or costly regulatory compliance. If one or more states or countries successfully assert that we should collect sales or other taxes on the use of the Internet or the online sales of goods and services, our expenses will increase, resulting in lower margins. We are exposed to pricing and production capacity risks associated with our magazine publishing business, which could result in lower revenues and profit margins. In the event of an earthquake, other natural or man-made disaster, or power loss, our operations could be interrupted or adversely affected, resulting in lower revenue. Recent regulations related to equity compensation could adversely affect our ability to attract and retain key personnel. In the event we are unable to satisfy regulatory requirements relating to internal control over financial reporting, or if these internal controls are not effective, our business and our stock price could suffer. Our stock price may be volatile and you may lose all or a part of your investment.

Full 10-K form ▸

1287258--3/11/2008--PLANETOUT_INC