886206--11/14/2007--FRANKLIN_COVEY

related topics

{financial, litigation, operation}

{tax, income, asset}

{cost, operation, labor}

{operation, international, foreign}

{system, service, information}

{product, market, service}

{cost, contract, operation}

{condition, economic, financial}

{debt, indebtedness, cash}

{competitive, industry, competition}

{personnel, key, retain}

{property, intellectual, protect}

{stock, price, operating}

{control, financial, internal}

{acquisition, growth, future}

{operation, natural, condition}

{product, liability, claim}

{regulation, government, change}

We operate in intensely competitive industries We have experienced net losses in recent fiscal years and we may not be able to maintain consistent profitability If we do not achieve the appropriate cost structure our profitability could decrease Our results of operations are materially affected by economic conditions, levels of business activity, and other changes experienced by our clients Our product sales may continue to decline and result in changes to our profitability Our work with governmental clients exposes us to additional risks that are inherent in the government contracting process We may not be able to compensate for lower sales or unexpected cash outlays with cost reductions significant enough to generate positive net income Our cash balances have significantly decreased, which may reduce our ability to adequately respond to future adverse changes in our business and operations Failure to comply with the terms and conditions of our credit facility may have an adverse effect upon our business and operations Our global operations pose complex management, foreign currency, legal, tax, and economic risks, which we may not adequately address We may experience foreign currency gains and losses Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business We could have liability or our reputation could be damaged if we do not protect client data or if our information systems are breached Our profitability will suffer if we are not able to maintain our pricing and utilization rates and control our costs Our new training programs and products may not be widely accepted in the marketplace Our training contracts could be unprofitable if our pricing structures do not accurately anticipate the cost and complexity of performing our work If we are unable to attract, retain, and motivate high-quality employees, including training consultants and other key training representatives, we will not be able to compete effectively and will not be able to grow our business We have only a limited ability to protect our intellectual property rights, which are important to our success Our strategy of outsourcing certain functions and operations may fail to reduce our costs for these services We have significant intangible asset balances that may be impaired if cash flows from related activities decline Our business could be negatively affected if we incur legal liability in connection with providing our solutions and services Our future quarterly operating results are subject to factors that can cause fluctuations in our stock price We may need additional capital in the future, and this capital may not be available to us on favorable terms We are the creditor for a management common stock loan program that may not be fully collectible We may have exposure to additional tax liabilities A natural or man-made disaster could have a material adverse effect on our business

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886206--11/14/2007--FRANKLIN_COVEY_CO