944765--4/1/2008--MERGE_HEALTHCARE

related topics

{regulation, government, change}

{financial, litigation, operation}

{operation, international, foreign}

{personnel, key, retain}

{property, intellectual, protect}

{customer, product, revenue}

{product, market, service}

{stock, price, operating}

{loss, insurance, financial}

{control, financial, internal}

{product, liability, claim}

{competitive, industry, competition}

Our new teleradiology product and service may not be successful We have identified a material weakness in our disclosure controls and procedures and our internal control over financial reporting, which, if not remedied effectively, could have an adverse effect on the trading price of our Common Stock and could otherwise seriously harm our business The actual costs and savings associated with our reorganization and rightsizing initiatives may differ materially from the amounts we estimate We grew our India operations rapidly, and these operations are subject to regulatory, economic and political uncertainties Anti outsourcing legislation, if adopted, could adversely affect our business, financial condition and results of operations and could impair our ability to service our customers and develop products Our recent headcount reductions have placed additional strain on our resources, may impair our operations and may adversely impact our ability to attract and retain qualified technical, managerial and sales personnel Changes in the healthcare industry, including the changes to reimbursement schedules under the Deficit Reduction Act of 2005, are expected to continue to negatively impact our business Litigation or regulatory actions could adversely affect our financial condition Our ability to obtain directors and officers liability insurance in the future and to maintain coverage under existing policies may be adversely affected by the lawsuits and regulatory actions against us and certain of our executive officers Our performance and future success depends on our ability to attract, integrate and retain qualified technical, managerial and sales personnel Relationships with our customers, potential customers and suppliers have been adversely affected, and our competitors competitive position improved, by our restatement of our financial results, related litigation and regulatory proceedings and management turnover Our quarterly net sales may vary significantly The length of our sales and implementation cycles may adversely affect our future operating results We face aggressive competition in many areas of our business, and our business will be harmed if we fail to compete effectively Our proprietary technology may be subject to infringement claims or may be infringed upon which could result in additional costs or lost sales We depend on licenses from third parties for rights to some technology we use, and if we are unable to continue these relationships and maintain our rights to this technology, our business could suffer We are subject to government regulation, changes to which could negatively impact our business Changes in federal and state regulations relating to patient data could depress the demand for our software and impose significant software redesign costs on us The complexity presented by international operations could negatively affect our business We provide our customers with certain warranties which could result in higher costs than we anticipate Product liability suits against us could result in expensive and time consuming litigation, payment of substantial damages and an increase in our insurance rates Healthcare industry consolidation could impose pressure on our software prices, reduce our potential client base and reduce demand for our software

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944765--4/1/2008--MERGE_HEALTHCARE_INC