865917--1/29/2010--VERSANT

related topics

{product, market, service}

{property, intellectual, protect}

{customer, product, revenue}

{personnel, key, retain}

{regulation, change, law}

{tax, income, asset}

{cost, operation, labor}

{operation, international, foreign}

{stock, price, share}

{condition, economic, financial}

{loan, real, estate}

{acquisition, growth, future}

{control, financial, internal}

{stock, price, operating}

{financial, litigation, operation}

Current economic conditions may harm our business and results of operations. 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. Our customer concentration increases the potential volatility of our operating results. Our quarterly revenue levels are not predictable. 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. We depend on successful technology development. 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 a substantial portion of our revenues being generated through our international operations and will continue to do so in the future. International Operations pose unique risks. Efforts to expand and diversify our product line may adversely affect our operating results and may not result in the development of successful new products. 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. Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited. Failure to adequately protect our intellectual property could impair our ability to successfully compete. We may be subject to claims of intellectual property infringement. 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 common stock is listed on the NASDAQ Capital Market. Charges to earnings resulting from our acquisition of businesses or assets may adversely affect the market value of our common stock. Our stock price is volatile. The Company may face risks associated with the trend of increased shareholder activism. Business disruptions could seriously harm our future revenue and financial condition and increase our costs and expenses.

Full 10-K form ▸

865917--1/29/2010--VERSANT_CORP