78749--12/16/2008--AGILYSYS_INC

related topics
{condition, economic, financial}
{control, financial, internal}
{product, market, service}
{acquisition, growth, future}
{cost, operation, labor}
{regulation, change, law}
{customer, product, revenue}
{capital, credit, financial}
{regulation, government, change}
Our business could be materially adversely affected if we cannot successfully implement changes to our information technology to support a changed business. When we make acquisitions, we may not be able to successfully integrate them or attain the anticipated benefits. Our profitability will be partly dependent upon restructuring and executing planned cost savings. We are dependent on a long-term product procurement agreement with Arrow Electronics, Inc. We are highly dependent on key suppliers and supplier programs. The market for our products and services is affected by changing technology and if we fail to anticipate and adapt to such changes, our results of operations may suffer. Prolonged economic weakness could cause a decline in spending for information technology, adversely affecting our financial results. While we believe that our plans to remediate our 2008 material weakness in internal controls over financial reporting, discussed in Item 9A of this report, will return us to the status of having adequate internal controls over financial reporting, we continue to be exposed to risks that those internal controls may be inadequate and we may have difficulty accurately reporting our financial results on a timely basis. We may be required to adopt International Financial Reporting Standards (IFRS). The ultimate adoption of such standards could negatively impact our business, financial condition or results of operations. Capital markets are currently experiencing a period of dislocation and instability, which has had and could continue to have a negative impact on our business and operations. Credit market developments may adversely affect our business and results of operations by reducing availability under our credit agreement. Disruptions in the financial and credit markets may adversely impact the spending of our customers, which could adversely affect our business, results of operations and financial condition. Delays in filing periodic reports and financial restatements may adversely affect the Company s stock price and ability to raise capital.

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