894738--10/29/2009--EASYLINK_SERVICES_INTERNATIONAL

related topics

{system, service, information}

{acquisition, growth, future}

{property, intellectual, protect}

{stock, price, share}

{product, market, service}

{tax, income, asset}

{regulation, change, law}

{operation, international, foreign}

{control, financial, internal}

{personnel, key, retain}

{interest, director, officer}

{customer, product, revenue}

{condition, economic, financial}

{debt, indebtedness, cash}

{product, candidate, development}

{stock, price, operating}

Risks Relating to Our Business Weakness in the financial markets and in the general economy has adversely affected and may continue to adversely affect certain segments of our customers. These general economic conditions may result in a decrease in the number of new customers we are able to attract and may negatively affect the usage levels of our services as well as customer retention. Acquisitions are central to our growth plan, if we cannot find, finance and integrate accretive acquisitions, our financial results will suffer. We may not be successful in competing against our competitors. We must continue to develop new products and services. Outsourcing of our services may not prove to be a viable business for organic growth. We have debt obligations which require us to meet certain restrictions on business activity and debt covenants. If we lose our net operating loss carryforward, our financial results will suffer. Our financial performance could cause future write-downs of goodwill or other intangible assets in future periods. If we are unable to maintain or replace our existing VAN interconnect arrangements, our results of operations will suffer. We rely on third parties to provide our services, and any failure of such third parties could adversely affect our business. We are dependent on licensed technology and third party commercial partners. We may need to obtain additional financing on satisfactory terms to continue to compete successfully. We may need to upgrade some of our computer systems to accommodate increases in traffic and to accommodate increases in the usage of our services, but we may not be able to do so while maintaining our current level of service, or at all. Our computer systems may fail and interrupt our service. If we cannot successfully continue to expand our business outside of the United States, our revenues and operating results will be adversely affected. Our international operations are subject to additional risks, and our operating results may suffer if these risks are not properly managed. If we cannot hire and retain highly qualified employees, our business and financial results will suffer. We depend on our intellectual property, which may be difficult and costly to protect. Intellectual property infringement claims against us could harm our business. We must comply with costly reporting requirements. We may be subject to assessment of income, state sales or other taxes for which we may not have accrued. We may have to use significant resources indemnifying our officers and directors or paying for damages caused by their conduct. Risks Relating to our Industry and the Internet and Online Commerce Aspects of Our Business Government regulation and legal uncertainties relating to the Internet could harm our business. Privacy concerns may prevent customers from using our services. Risks Relating to Our Class A Common Stock The market price of our class A common stock is likely to be highly volatile. Shares eligible for future sale by our existing security holders may adversely affect our stock price.

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894738--10/29/2009--EASYLINK_SERVICES_INTERNATIONAL_CORP