215219--8/31/2007--Voyager_Learning_CO

related topics
{financial, litigation, operation}
{control, financial, internal}
{product, market, service}
{property, intellectual, protect}
{system, service, information}
{personnel, key, retain}
{stock, price, operating}
{regulation, government, change}
{loss, insurance, financial}
Our sales and profitability depend on our ability to continue to develop new products that appeal to customers and end users. Changes in funding for public schools could cause the demand for our products to decrease. We face intense competition and may not be able to successfully attract and retain customers. Our intellectual property protection may be inadequate, allowing others to use our technologies and thereby reduce our ability to compete. Our products could infringe on the intellectual property of others, which may cause us to engage in costly litigation and could cause us to pay substantial damages and prohibit us from selling our products. Our success depends on our ability to attract and retain key personnel, and our key personnel, especially those holding multiple positions, may not be able to fulfill their roles effectively if we become understaffed. We could experience system failures, software errors or capacity constraints, any of which would cause interruptions in our delivery of electronic content to customers and ultimately may cause us to lose customers. Our systems face security risks, and our customers have concerns about their privacy. Unless we maintain a strong brand identity, our business may not grow as anticipated. Our operating results continue to fluctuate, and a revenue or earnings shortfall in a particular quarter could have a negative impact on the price of our common stock. Our stock price may be volatile, and your investment in our stock could decline in value. We are a party to a number of matters of civil litigation that could have a material adverse effect on our financial results. The Company has identified numerous material weaknesses in its internal control over financial reporting. The Company expects to continue to incur significant expenses related to its internal control over financial reporting and the preparation of its financial statements. Our ability to report our financial results on a timely basis in the future could be adversely affected by our weaknesses in internal controls. Any adverse outcome of the investigation currently being conducted by the SEC could have a material adverse impact on us, on the trading prices of our securities, and on our ability to access the capital markets. The impact of ongoing purported securities class action, derivative and insurance-related litigation may be material. We are also subject to the risk of additional litigation and regulatory action in connection with the restatement of our Consolidated Financial Statements. The potential liability from any such litigation or regulatory action could adversely affect our business. We could experience a material adverse result if our insurance coverage is insufficient to cover losses that may occur as a result of the litigation.

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