900017--3/31/2008--THOMAS_GROUP

related topics

{regulation, government, change}

{product, market, service}

{customer, product, revenue}

{acquisition, growth, future}

{personnel, key, retain}

{cost, contract, operation}

{property, intellectual, protect}

{control, financial, internal}

{condition, economic, financial}

{operation, international, foreign}

{provision, law, control}

{stock, price, operating}

{stock, price, share}

{financial, litigation, operation}

{cost, operation, labor}

{system, service, information}

We derive a portion of our revenue from contracts awarded through a competitive bidding process. If we are unable to win new awards consistently over any extended period, our business could be adversely affected. We recently failed to win a competitive bid for future work under a U.S. Navy program that previously comprised a large portion of our business. If we are unable to replace that business, our revenue and results of operations may be adversely affected. We derive our revenue from a limited number of engagements and our revenue could be adversely affected by the loss of a significant client or the cancellation of a significant engagement. A significant portion of our revenue is derived from government client engagements and this exposes us to various risks inherent in government contracts and the government contracting process. Our engagements with clients may be terminated by our clients on short notice. Failure to maintain strong relationships with our contracting intermediary could result in less favorable contract terms and a decline in our revenue. We enter into fixed, task-based and incentive fee engagements with our clients and unexpected costs, delays or failures to achieve anticipated cost reductions or performance improvements could make our contracts less profitable. Our revenue and operating results may fluctuate significantly from quarter to quarter, and fluctuations in operating results could cause our stock price to decline. Our profitability will suffer if we are not able to maintain our pricing and utilization rates and control our costs. A significant or prolonged economic downturn could have a material adverse effect on our results of operations. The consulting services industry is highly competitive and actions by competitors could render our services and solutions less competitive, causing revenue and profit margin to decline. If we are unable to attract, hire, develop, train and retain experienced Resultants and sales professionals, our competitive position and financial performance could suffer. It may be difficult for us to differentiate the professional services and solutions we offer to our clients from those offered by our competitors. We must continually enhance our services and solutions to meet the changing needs of our clients or face the possibility of losing future business to competitors. Maintaining our reputation is critical to our future success. If we are unable to grow or if we fail to manage growth or fluctuations in the size of our business successfully our revenue and results of operations could be adversely affected. Our engagements could result in professional liability, which could be very costly and damage our reputation. Inability to protect intellectual property could harm our competitive position and financial performance. If we fail to maintain adequate internal control over financial reporting, if we are unable to timely complete our assessment of the effectiveness of our internal control over financial reporting, or if our independent registered public accounting firm cannot attest to our assessment of our internal control over financial reporting, we may be subject to regulatory sanctions and a loss of public confidence and the trading price of our stock could be negatively impacted. Operating internationally exposes us to special risks and factors that could negatively impact our business or operations and could result in increased expenses and declining profit margin. We may not pay dividends. We may need additional capital in the future, and this capital may not be available to us. The raising of additional capital may dilute stockholders' ownership in us. Our certificate of incorporation, bylaws, stockholder rights plan, Delaware law and arrangements we have with certain significant stockholders may discourage an acquisition of our company.

Full 10-K form ▸

900017--3/31/2008--THOMAS_GROUP_INC