845818--3/12/2010--RADIANT_SYSTEMS

related topics

{system, service, information}

{stock, price, operating}

{condition, economic, financial}

{customer, product, revenue}

{product, market, service}

{operation, international, foreign}

{personnel, key, retain}

{property, intellectual, protect}

{acquisition, growth, future}

{tax, income, asset}

{stock, price, share}

{competitive, industry, competition}

{control, financial, internal}

{provision, law, control}

{capital, credit, financial}

Risks Related to our Business Global economic and market conditions could cause decreases in demand for our products and related services. Volatility and disruption of the capital and credit markets, and adverse changes in the global economy, could have a negative impact on our ability to access the credit markets in the future and/or obtain credit on favorable terms. Fluctuations in currency exchange rates may adversely impact our cash flows and earnings. An increase in customer bankruptcies, due to weak economic conditions, could harm our business. Our revenues are significantly concentrated in the hospitality and retail markets and the demand for our products and services in these markets could be disproportionately affected by instability or a downturn in either market. We may be required to defer recognition of revenues on our software products, which may have a material adverse effect on our financial results. Our revenues and results of operations are difficult to predict and may fluctuate substantially from quarter to quarter, which could adversely affect our business and the market price of our common stock. Our gross margins may vary significantly or decline. Our success will depend on our ability to develop new products and to adapt to rapid technological change. If the emerging platforms of Microsoft and others with which we integrate our products does not gain or retain broad market acceptance, or if we fail to develop new software compatible with such emerging technologies, we may not be able to compete effectively and our business, operating results and financial condition could suffer. We may have difficulty implementing our products, which could damage our reputation and our ability to generate new business. Errors or defects in our software products could diminish demand for our products, injure our reputation and reduce our operating results. Our failure to manage our growth effectively could have a material adverse effect on our business, operating results and financial condition. Our acquisition of existing businesses and our failure to successfully integrate these businesses could disrupt our business, dilute our common stock and harm our operating results and financial condition. Damage to our manufacturing site and/or office space could limit our ability to operate our business. Our inability to obtain key manufacturing parts from our suppliers could have a material adverse effect on our business, operating results and financial condition. The loss of our key personnel could have a material adverse effect on us. Our inability to attract, hire or retain the necessary technical and managerial personnel could have a material adverse effect on our business, operating results and financial condition. Our success and ability to compete are dependent upon our ability to protect our proprietary technology. If we become subject to adverse claims alleging infringement of third-party proprietary rights, we may incur substantial unanticipated costs and our competitive position may suffer. We operate in a highly competitive market and can give no assurance that we will be able to compete successfully against our current or future competitors. Our increased investment in the international market could expose us to risks in addition to those experienced in the United States. Our products and services could be vulnerable to unauthorized access and hacking, and any security breach could have a significant effect on our business and could expose us to material liability. We may be subject to additional tax liabilities. We have recorded a large amount of goodwill and other acquired intangible assets on our balance sheet and, for the fiscal year ended December 31, 2009, we were required to record a non-cash charge to earnings. Our Enterprise Resource Planning ( ERP ) system upgrade could result in financial statement errors and/or impact our ability to meet deadlines for future SEC filings. Risks Related to an Investment in Our Common Stock Investment in our common stock involves risk and we do not expect to pay dividends on our common stock in the foreseeable future. Our executive officers own a significant amount of our common stock and will be able to exercise significant influence on matters requiring shareholder approval. Our articles of incorporation and bylaws contain anti-takeover provisions which could have the effect of making it more difficult for a third party to acquire control of us.

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845818--3/12/2010--RADIANT_SYSTEMS_INC