877645--3/10/2009--TECHNOLOGY_SOLUTIONS

related topics

{product, market, service}

{stock, price, operating}

{cost, operation, labor}

{cost, contract, operation}

{customer, product, revenue}

{competitive, industry, competition}

{system, service, information}

{property, intellectual, protect}

{condition, economic, financial}

{acquisition, growth, future}

{personnel, key, retain}

{loan, real, estate}

{financial, litigation, operation}

{regulation, change, law}

We must increase revenues and return to profitability in order to continue as a going concern. We may not be able to introduce new services and products successfully, and our failure to do so could cause our operational results to suffer. Our investments of certain cash balances in short-term investments are subject to risks, which may cause losses and affect the liquidity of these investments. If we continue to experience operating losses, our cash resources will be depleted and additional sources of cash will be required if we are to continue as a going concern. We must manage costs to match the level of demand for our services, and failure to do so will adversely affect our business. We may not realize expected benefits from any restructuring initiatives. Our inability to achieve appropriate utilization rates or charge acceptable rates for our services could adversely affect our operating profit. A limited number of our clients comprise a large portion of our revenues and any decrease in revenues from these clients could have an adverse effect on our business, financial condition, operating results and prospects. Unanticipated cancellations or suspensions of projects could adversely affect our operating results. Certain of our engagements are on a fixed price basis, which results in additional operating risks. Our failure to perform services properly could result in substantial claims from clients. We are incurring costs as a result of being a public company. Our operating results will likely fluctuate, which may cause volatility in our stock price. Our small amount of outstanding shares may cause our stock market price to fluctuate greatly on low volume of shares. We operate in a highly competitive industry. We may engage in strategic acquisitions, investments and dispositions. The market for information technology services is rapidly changing. We may encounter difficulties in hiring and retaining the personnel required to deliver our services and manage our company. We may be subject to litigation from time to time. We are subject to numerous and changing economic and industry conditions. We are dependent on the products and services of third parties. We have limited intellectual property rights and they may not be adequate to protect our business.

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877645--3/10/2009--TECHNOLOGY_SOLUTIONS_COMPANY