865917--1/14/2009--VERSANT

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, share}

{personnel, key, retain}

{regulation, change, law}

{operation, international, foreign}

{condition, economic, financial}

{acquisition, growth, future}

{control, financial, internal}

{financial, litigation, operation}

{stock, price, operating}

{cost, operation, labor}

We are dependent on a limited number of products, especially Versant Object Database or "VOD". Our products face significant competition from larger competitors. Reduced demand for our products and services may prevent us from achieving targeted revenues and profitability. Current economic conditions may harm our business and results of operations. We depend on successful technology development. Our quarterly revenue levels are not predictable. To expand and diversify our product line may adversely affect our operating results and may not result in the development of successful new products. Our future revenues are substantially dependent upon our installed customers continuing to license Versant products and renew their maintenance agreements for our products. Our future professional services and maintenance revenues are dependent on future sales of our software products. Our customer concentration increases the potential volatility of our operating results. Our products have a lengthy sales cycle. We may not be able to manage our costs effectively given the unpredictability of our revenues. We rely on revenues from the telecommunications and defense industries; and these industries are characterized by complexity, intense competition and changes in purchasing cycles. We rely on substantial revenues generated through our international operations and will continue to do so in the future. International Operations pose unique risks. In order to be successful, Versant must attract, retain and motivate key employees, for whom competition is intense; and failure to do so could seriously harm the Company, particularly given the smaller size of our executive management team. Our personnel, management team and operations are located in different countries and as a result, we may experience difficulty in coordinating our activities and successfully implementing Company goals. We are subject to litigation and the risk of future litigation. We will incur increased costs to comply with certain requirements of the Sarbanes-Oxley Act of 2002 and regulations relating to corporate governance matters and public disclosure. Although we believe we currently have adequate internal control over financial reporting, we are required to assess our internal control over financial reporting on an annual basis, and any future adverse results from such assessment could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price. Adoption and application of accounting regulations and related interpretations and policies regarding revenue recognition could cause us to defer recognition of revenue or recognize lower revenues and profits. Charges to earnings resulting from the application of the purchase method of accounting for the merger with Poet and FastObjects and our acquisition of the db4o assets may adversely affect the market value of our common stock. Failure to adequately protect our intellectual property could impair our ability to successfully compete. We may be subject to claims of intellectual property infringement. Our common stock is listed on the NASDAQ Capital Market. We may engage in future acquisitions of businesses or assets that could dilute our shareholders and cause us to incur debt or assume contingent liabilities. Our stock price is volatile.

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865917--1/14/2009--VERSANT_CORP