931784--3/9/2006--CAPTARIS_INC

related topics
{customer, product, revenue}
{property, intellectual, protect}
{product, market, service}
{stock, price, operating}
{system, service, information}
{acquisition, growth, future}
{cost, contract, operation}
{personnel, key, retain}
{operation, international, foreign}
{competitive, industry, competition}
Our stock price has been highly volatile. Our quarterly sales patterns fluctuate, causing our quarterly operating results to vary. These operating results may fall below expectations of securities analysts and investors. We depend on third parties for a key component of our Rightfax product. We rely heavily on independent distributors, value-added resellers and IT service partners. Failure to establish and maintain OEM and strategic relationships could limit our ability to maintain or increase revenue. Our market is highly competitive. Technology and customer demands change rapidly in our industry. We face risks from expansion of our international operations. Our investment in the business information delivery solutions market may not be successful. The integration of recent and any future acquisitions may be difficult and disruptive, and we may incur significant costs in connection with the evaluation and negotiation of potential acquisitions. Our average sales prices may decline for some of our products. Subsequent activities related to the sale of the assets of MediaTel Corporation and activities associated with liabilities retained by us in this disposition may continue to be disruptive to our ongoing operations. Our business may be seriously harmed by third-party litigation against us relating to alleged violations of the Telephone Consumer Protection Act. Security breach of confidential data may expose us to additional costs and to litigation, which could harm our business. We may be unable to adequately protect our proprietary rights. Other companies may claim that we infringe their intellectual property or proprietary rights, which could cause us to incur significant expenses or be prevented from selling our products. We may not be able to hire and retain highly skilled employees, which could affect our ability to compete effectively.

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