938481--3/3/2006--DATASTREAM_SYSTEMS

related topics

{system, service, information}

{product, market, service}

{personnel, key, retain}

{provision, law, control}

{property, intellectual, protect}

{stock, price, share}

{operation, international, foreign}

{control, financial, internal}

{product, liability, claim}

{stock, price, operating}

{condition, economic, financial}

{regulation, government, change}

{product, candidate, development}

{competitive, industry, competition}

{acquisition, growth, future}

Our market continues to be highly competitive. If we do not keep pace with rapid technological changes and demands in our markets, we will not remain competitive. Increasing sales cycles and other factors may result in volatility of our quarterly results. Our engagements typically require longer implementations and other professional services engagements. Our hosting services strategy may reduce profits. Our electronic procurement strategy may not generate future revenue and profits. Significant delays in product development would harm our reputation as an innovator and result in a decrease in our revenues. Our future success is substantially dependent on third party relationships. Our future success is substantially dependent on third party technologies. Our business could be substantially harmed if we have to correct or delay the release of products due to software bugs or errors. If we fail to manage our international operations, our business could be adversely affected. In trying to increase our sales in certain vertical markets, we may face difficulties and risks unique to those markets that may have a detrimental impact on our business or operating results. Deterioration of economic and political conditions could adversely affect operations. Security risks and concerns may deter the use of the Internet for our applications. Our common stock is not listed on any exchange or quoted on the Nasdaq National Market; therefore, a public market in our common stock may not be sustained, which may make it difficult for stockholders to sell shares of our common stock at or near ask prices or at all. If we fail to maintain an effective system of disclosure controls and procedures and internal controls, we may not be able to accurately report our financial results on a timely basis. As a result, market makers in our common stock could be deterred from quoting our common stock on the Pink Sheets, current and potential stockholders could lose confidence in our financial reporting, and the trading price of our common stock could fall. Compliance with new accounting, reporting and audit requirements may strain our limited administrative, financial and executive resources and affect our ability to attract and retain key personnel. Completion of the merger with Infor is subject to various conditions and the merger may not occur even if we do obtain stockholder approval. Failure to complete the merger could negatively impact the market price of our common stock and operation of our business. We must recruit and retain key employees in order to be successful, and we may lose key personnel as a result of uncertainties associated with the merger with Infor. If we fail to adequately protect our proprietary rights, it could harm our competitive position and decrease our revenues. The merger agreement with the Infor parties, our certificate of incorporation, our bylaws and Delaware law may inhibit a change in control, which may not be in the best interests of our stockholders.

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938481--3/3/2006--DATASTREAM_SYSTEMS_INC