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as to a future claim. A product liability or similar claim may have a material adverse effect on our business, financial position, results
of operations or cash flows.
Our revenue may decline if we fail to retain our largest customers for all of the deliverables that we sell to them, and if we
fail to maintain or expand our relationships with strategic partners and indirect distribution channels our license revenues could
decline.
Our growth depends on maintaining relationships with our major customers and on developing other customers and distribution
channels. If our largest customers reduce their expenditures for marketing the services for which we provide technology, change their
plans to eliminate our services, price our products and services at a level that makes them less attractive, or offer and promote
competing products and services, in lieu of, or to a greater degree than, our products and services, our revenue would be materially
reduced and our business, operating results and financial condition would be materially and adversely affected.
Our growth also depends on maintaining relationships with distribution channels for Nextgen 9-1-1 solutions. The loss of these
relationships would have a material adverse impact on our business, financial position, results of operations or cash flows.
Government regulation of the mobile industry is evolving, and unfavorable changes or our failure to comply with regulations
could harm our business and operating results.
As the mobile industry continues to evolve, we believe greater regulation by federal, state or foreign governments or regulatory
authorities is likely. For example, we believe increased regulation is likely in the area of data privacy, and laws and regulations
applying to the solicitation, collection, processing or use of personal or consumer information, could affect our customers’ ability to
use and share data, potentially reducing our ability to utilize this information for the purpose of continued improvement of the overall
mobile subscriber experience. In addition, any regulation of the requirement to treat all content and application provider services the
same over the mobile Internet, sometimes referred to as net neutrality regulation, could reduce our customers’ ability to make full use
of the value of our services.
Growing market acceptance of “open source” software could have a negative impact on us.
We have incorporated some types of open source software into our products, allowing us to enhance certain solutions without
incurring substantial additional research and development costs. Thus far, we have encountered no unanticipated material problems
arising from our use of open source software. However, as the use of open source software becomes more widespread, certain open
source technology could become competitive with our proprietary technology, which could cause sales of our products to decline or
force us to reduce the fees we charge for our products, which could have a material adverse effect on our business, financial position,
results of operations or cash flows.
From time to time, there have been claims challenging the ownership of open source software against companies that
incorporate open source software into their products. As a result, we could be subject to suits by parties claiming ownership of what
we believe to be open source software. Some open source licenses contain requirements that we make available source code for
modifications or derivative works under the terms of a particular open source license or other license granting third parties certain
rights of further use. If we combine our proprietary software products with open source software in a certain manner, we could under
certain of the open source licenses, be required to release our proprietary source code. Open source license terms may be ambiguous
and many of the risks associated with usage of open source cannot be eliminated, and could if not properly addressed, negatively
affect our business. If we were found to have inappropriately used open source software, we may be required to release our proprietary
source code, re-engineer our products and client applications, discontinue the sale of our products or services in the event re-
engineering cannot be accomplished on a timely basis or take other remedial action that may divert resources away from our
development efforts, any of which could adversely affect our business, operating results and financial condition.
Because our solutions are sold internationally, we are subject to risks of conducting business in foreign countries.
We believe our revenue will increasingly include business in foreign countries, and we will be subject to the social, political and
economic risks of conducting business in foreign countries. Laws and regulations for foreign business include internal control and
disclosure rules, data privacy and filtering requirements, anti-corruption laws, such as the Foreign Corrupt Practices Act, and other
local laws prohibiting corrupt payments to governmental officials, and antitrust and competition regulations, among others. Violations
of these laws and regulations could result in fines and penalties, criminal sanctions against us, our officers, or our employees,
prohibitions on the conduct of our business and on our ability to offer our products and services in one or more countries, and our
international expansion efforts. Although we have implemented policies and procedures designed to ensure compliance with these
laws and regulations, there can be no assurance that our employees, contractors, or agents will not violate our policies. Some
international government customers may require contractors to agree to specific in-country purchases, manufacturing agreements or
financial support arrangements, known as offsets, as a condition for a contract award. The contracts may include penalties if we fail to
meet the offset requirements. Other risks include:
