1287258--3/15/2006--PLANETOUT

related topics

{acquisition, growth, future}

{system, service, information}

{personnel, key, retain}

{property, intellectual, protect}

{loan, real, estate}

{financial, litigation, operation}

{product, market, service}

{customer, product, revenue}

{control, financial, internal}

{operation, natural, condition}

{regulation, government, change}

If we fail to manage our growth, our business will suffer. If we are unable to successfully expand our international operations, our business will suffer. Recent and potential future acquisitions could result in operating difficulties and unanticipated liabilities. If we do not continue to attract and retain qualified personnel, we may not be able to expand our business. Our success depends, in part, upon the growth of Internet advertising and upon our ability to accurately predict the cost of customized campaigns. If advertisers do not find the LGBT market to be economically profitable, our business will be harmed. 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 is lower revenues and profit margins. We may need additional capital and may not be able to raise additional funds on favorable terms or at all, which could increase our costs, limit our ability to grow and dilute the ownership interests of existing stockholders. 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 and proposed 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.

Full 10-K form ▸

1287258--3/15/2006--PLANETOUT_INC