797448--3/31/2006--VERSO_TECHNOLOGIES_INC

related topics
{property, intellectual, protect}
{product, market, service}
{operation, international, foreign}
{product, liability, claim}
{personnel, key, retain}
{control, financial, internal}
{customer, product, revenue}
{stock, price, share}
{condition, economic, financial}
The Company has a history of losses and may not be profitable in the future. The Common Stock may be delisted from The Nasdaq Capital Market. The Company s growth could be limited if it is unable to attract and retain qualified personnel. The Company is exposed to the general condition of the telecommunications market. The Company s need to invest in research and development could harm the Company s operating results. The market for converged communications solutions is still in its infancy and rapidly evolving. If this market does not develop and grow as expected, then it could have a material adverse effect on the Company s business. Intellectual property infringement claims against the Company, even without merit, could require the Company to enter into costly licenses or deprive the Company of the technology it needs. Failure to protect the Company s intellectual property rights could have a material adverse effect on the Company s business. If the Company s products contain defects, then the Company s sales are likely to suffer, and the Company may be exposed to legal claims. The Company may be obligated to indemnify customers who purchase equipment from the Company against claims of patent infringement. The Company s focus on emerging markets could make achievement of its sales goals more difficult. Sales to customers based outside the United States have accounted for a significant portion of the Company s revenues, which exposes the Company to risks inherent in international operations. The Company s dependence on contract manufacturers and suppliers could result in product delivery delays. The Company may be subject to litigation.

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