890564--3/16/2006--ON_ASSIGNMENT

related topics

{regulation, government, change}

{personnel, key, retain}

{capital, credit, financial}

{system, service, information}

{stock, price, operating}

{condition, economic, financial}

{provision, law, control}

{operation, international, foreign}

{loss, insurance, financial}

{stock, price, share}

Our results of operations may vary from quarter to quarter as a result of a number of factors, which may make it difficult to evaluate our business and could cause instability in the trading price of our common stock. If we are unable to attract and retain qualified contract professionals for our Lab Support and Healthcare Staffing segments, our business could be negatively impacted. Growth of our businesses is substantially dependent upon our ability to attract, develop and retain qualified and skilled Staffing Consultants. If we lose a major client in our Nurse Travel line of business and are not able to replace the lost business quickly, our business could be negatively impacted. Our business is dependent upon the proper functioning of our information systems in a cost effective manner. The temporary staffing industry is highly competitive and the success and future growth of our business depend upon our ability to remain competitive in obtaining and retaining temporary staffing clients. Because our contract staffing agreements may be terminated by clients and contract professionals at will, the termination of a significant number of such agreements would adversely affect our revenues and results of operations. We are subject to business risks associated with international operations, which could make our international operations significantly more costly. Improper activities of our contract professionals could result in damage to our business reputation, discontinuation of our client relationships and exposure to liability. Claims against us by our contract professionals for damages resulting from the negligence or mistreatment by our clients could result in significant costs and adversely affect our recruitment and retention efforts. If we are subject to material uninsured liabilities under our partially self-insured workers compensation program, our financial results could be adversely affected. Our costs of providing travel and housing for nurses and other healthcare personnel may be higher than we anticipate and, as a result, our margins could decline. Demand for our services is significantly impacted by changes in the general level of economic activity and continued periods of reduced economic activity could negatively impact our business and results of operations. We do not have long-term or exclusive agreements with our temporary staffing clients and growth of our business depends upon our ability to continually secure and fill new orders. Fluctuation in patient occupancy rates at client facilities could adversely affect demand for services of our Healthcare Staffing segment and our results of operations. The loss of key members of our senior management team could adversely affect the execution of our business strategy and our financial results. Future changes in reimbursement trends could hamper our Healthcare Staffing segment clients ability to pay us. If our insurance costs increase significantly, these incremental costs could negatively affect our financial results. Healthcare reform could negatively impact our business opportunities, revenues and gross and operating margins. We operate in a regulated industry and changes in regulations or violations of regulations may result in increased costs or sanctions that could reduce our revenues and profitability. The trading price of our common stock has experienced significant fluctuations, which could make it difficult for us to access the public markets for financing or use our common stock as consideration in a strategic transaction. Provisions in our corporate documents and Delaware law may delay or prevent a change in control of On Assignment that stockholders consider favorable.

Full 10-K form ▸

890564--3/16/2006--ON_ASSIGNMENT_INC