914712--10/16/2006--CMGI

related topics

{cost, operation, labor}

{customer, product, revenue}

{system, service, information}

{acquisition, growth, future}

{stock, price, operating}

{product, market, service}

{property, intellectual, protect}

{personnel, key, retain}

{investment, property, distribution}

{competitive, industry, competition}

{operation, international, foreign}

We may have difficulty achieving and sustaining operating profitability, and if we deplete our working capital balances, our business will be materially and adversely affected. We derive a substantial portion of our revenue from a small number of clients and adverse industry trends or the loss of any of those clients could significantly damage our business. Our quarterly results may fluctuate significantly. We may encounter problems in our efforts to increase operational efficiencies. We are subject to risks of operating internationally. We may have problems raising capital we need in the future. A decline in the technology sector could reduce our revenues. The gross margins in the supply chain management business are low, which magnifies the impact of variations in revenue and operating costs on our financial results. We will continue to be subject to intense competition. Because our contracts do not contain minimum purchase requirements and we sell primarily on a purchase order basis, we are subject to uncertainties and variability in demand by clients, which could decrease revenue and adversely affect our financial results. We must maintain adequate levels of inventory in our supply chain management business in order to meet client needs, which presents risks to our financial position and operating results. Our failure to meet client demands could result in lost revenues, increased expenses and negative publicity. If we are not able to establish client sites where requested, or if we fail to retain key clients at established sites, our client relationships, revenue and expenses could be seriously harmed. Venture capital investing is risky and highly speculative. We may be affected by strikes, work stoppages and slowdowns by our employees. The intellectual property of our supply chain management clients may be damaged, misappropriated, stolen or lost while in our possession, subjecting us to litigation and other adverse consequences. We may be liable if third parties misappropriate personal information of our clients customers. We depend on third-party software, systems and services. We depend on important employees, and the loss of any of those employees may harm our business. Our strategy of expanding our business through acquisitions of other businesses and technologies presents special risks. The price of our common stock has been volatile and may fluctuate, in part, based on the value of our assets. We could be subject to infringement claims and other liabilities.

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914712--10/16/2006--CMGI_INC