1396838--3/28/2008--Dolan_Media

related topics

{system, service, information}

{stock, price, share}

{cost, operation, labor}

{investment, property, distribution}

{debt, indebtedness, cash}

{control, financial, internal}

{cost, regulation, environmental}

{product, market, service}

{regulation, government, change}

{property, intellectual, protect}

{personnel, key, retain}

{condition, economic, financial}

{acquisition, growth, future}

{competitive, industry, competition}

Risks Relating to Our Business Information Division We depend on the economies and the demographics of our targeted sectors in the local and regional markets that we serve, and changes in those factors could have an adverse impact on our revenues, cash flows and profitability. A change in the laws governing public notice requirements may reduce or eliminate the amount of public notices required to be published in print, affect how newspapers are chosen for the publication of public notices or adversely change the eligibility requirements for publishing public notices, which could adversely affect our revenues, profitability and growth opportunities. If we are unable to compete effectively with other companies in the local media industry, our revenues and profitability may decline. Our business and reputation could suffer if third-party providers of printing and delivery services that we rely upon fail to perform satisfactorily. If our Business Information operations in certain states where we generate a significant portion of that operating division s revenues are not as successful in the future, our operating results could be adversely affected. A key component of our operating income and operating cash flows has been, and may continue to be, our minority equity investment in a Michigan publishing company. Government regulations related to the Internet could increase our cost of doing business, affect our ability to grow or may otherwise negatively affect our business. If we are unable to generate traffic to our on-line publications and other web sites and electronic services, our ability to continue to grow our Business Information Division may be negatively affected. Risks Relating to Our Professional Services Division We have owned and operated the businesses within our Professional Services Division for only a short period of time. David A. Trott, the President of APC, and certain other employees of APC, who are also shareholders and principal attorneys of our law firm customers, may under certain circumstances have interests that differ from or conflict with our interests. If the number of case files referred to us by our three current mortgage default processing service customers decreases or fails to increase, our operating results and ability to execute our growth strategy could be adversely affected. Regulation of the legal profession may constrain APC s and Counsel Press operations, and numerous issues arising out of that regulation, its interpretation or its evolution could impair our ability to provide professional services to our customers and reduce our revenues and profitability. Regulation of sub-prime, Alt-A and other non-traditional mortgage products, including voluntary programs such as Project Lifeline, and the Hope Now Alliance, a consortium that develops foreclosure relief programs, may have an adverse affect on or restrict our operations. Failure to effectively customize our proprietary case management software system so that it can be used to serve law firm customers in new states could adversely affect our mortgage default processing service business and growth prospects. Claims, even if not valid, that our case management software system, document conversion system or other proprietary software products and information systems infringe on the intellectual property rights of others could increase our expenses or inhibit us from offering certain services. Risks Relating to Our Business in General We depend on key personnel and we may not be able to operate and grow our business effectively if we lose the services of any of our key personnel or are unable to attract qualified personnel in the future. We intend to continue to pursue acquisition opportunities, which we may not do successfully and may subject us to considerable business and financial risk. We may have difficulty managing our growth, which may result in operating inefficiencies and negatively impact our operating margins. We rely on our proprietary case management software system, document conversion systems, web sites and on-line networks, and a disruption, failure or security compromise of these systems may disrupt our business, damage our reputation and adversely affect our revenues and profitability. We may be required to incur additional indebtedness or raise additional capital to fund our operations and acquisitions or repay our indebtedness. We have incurred and will continue to incur significant costs as a result of operating as a public company, and our management is required to devote substantial time and resources to various compliance issues; if we do not address these compliance issues successfully, our stock price could be adversely impacted. We have incurred in the past, and may incur in the future, net losses. We are subject to risks relating to litigation due to the nature of our product and service offerings. Our failure to comply with the covenants contained on our debt instruments could result in an event of default that could adversely affect our financial condition and ability to operate our business as planned. We may be required to incur additional indebtedness if either of the two minority members of APC exercises its put right with respect to its membership interest in APC. We rely on exclusive proprietary rights and intellectual property that may not be adequately protected under current laws, and we encounter disputes from time to time relating to our use of intellectual property of third parties. Risks Associated with Purchasing Our Common Stock Our common stock has a limited trading history and the market price of our common stock may be volatile and will depend on a variety of factors, which could cause our common stock to trade at prices below the price you have paid. Future offerings of debt or equity securities by us may adversely affect the market price of our common stock or your rights as holders of our common stock. Future sales of our common stock in the public market may adversely affect the market price of our common stock or our ability to raise additional capital.

Full 10-K form ▸

1396838--3/28/2008--Dolan_Media_CO