912890--6/15/2006--TERREMARK_WORLDWIDE

related topics

{debt, indebtedness, cash}

{stock, price, share}

{acquisition, growth, future}

{regulation, government, change}

{personnel, key, retain}

{operation, natural, condition}

{customer, product, revenue}

{competitive, industry, competition}

{cost, operation, labor}

We may not be able to compete successfully against current and future competitors. We anticipate that an increasing portion of our revenues will be from contracts with agencies of the United States government, and uncertainties in government contracts could adversely affect our business. We derive a significant portion of our revenues from a few clients; accordingly, a reduction in our clients demand for our services or the loss of clients would likely impair our financial performance. We have significant debt service obligations which will require the use of a substantial portion of our available cash. The mortgage loan with Citigroup and our senior secured notes contain numerous restrictive covenants. Our substantial leverage and indebtedness could adversely affect our financial condition, limit our growth and prevent us from fulfilling our debt obligations. If our financial condition deteriorates, we may be delisted by the American Stock Exchange and our stockholders could find it difficult to sell our common stock. We are dependent on key personnel and the loss of these key personnel could have a material adverse effect on our success. Our business could be harmed by prolonged electrical power outages or shortages, or increased costs of energy. We have acquired and may acquire other businesses, and these acquisitions involve numerous risks. We may encounter difficulties implementing our expansion plan. Our common shares are thinly traded and, therefore, relatively illiquid. Our stock price may be volatile, and you could lose all or part of your investment.

Full 10-K form ▸

912890--6/15/2006--TERREMARK_WORLDWIDE_INC