3
Cautionary Note Concerning Factors That May Affect Future Results
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-
looking statements are statements other than historical information or statements of current condition. We generally identify forward-
looking statements by the use of terms such as “believe”, “intend”, “expect”, “may”, “should”, “plan”, “project”, “contemplate”,
“anticipate”, or other similar statements. Examples of forward looking statements in this Annual Report on Form 10-K include, but are
not limited to statements that
(i)
we intend to continue to selectively consider acquisitions of companies and technologies in order to increase the scale
and scope of our operations, market presence, products, services and customer base and that could enhance both our
business segments;
(ii)
we intend to expand our domestic and international carrier base through channels and by re-deploying our direct sales
and field support organizations;
(iii)
we intend to expand our adaptation of our technology for device platform and other non-carrier customers and our
penetration of such customers;
(iv)
we intend to retain any future earnings to fund the business and do not currently anticipate paying any cash dividends
in the foreseeable future;
(v)
we believe that our expertise in the areas of 9-1-1, location-based and messaging services, and secure satellite
communications can be leveraged to provide the needed wireless infrastructure for the U.S. Departments of
Homeland Security and Defense, and we are pursuing opportunities to provide such products and services;
(vi)
we believe that TCS enjoys a competitive advantage, because our government customers can benefit from a single-
source vendor;
(vii)
we believe we have invented to enable key features of the location services, wireless text alerts, Short Message
Service Center, mobile-originated data and E9-1-1 network software;
(viii)
we believe relations with our employees are good;
(ix)
we believe our technology does not infringe the cited patents and due to specific clauses within the customer
contractual arrangements that may or may not give rise to an indemnification obligation, and that we believe we
should not incur any material liabilities from customer indemnification requests;
(x)
we believe the assumptions and estimates we have made regarding our valuation of certain of the intangible assets are
reasonable and that unanticipated events and circumstances may occur which may affect the accuracy or validity of
such assumptions, estimates or actual results;
(xi)
that we believe our capitalized research and development expense will be recoverable from future gross profits
generated by the related products;
(xii)
we believe we can fund our future acquisitions with our internally available cash, cash equivalents and marketable
securities, cash generated from operations, amounts available under our existing debt capacity, additional borrowings
or from the issuance of additional securities;
(xiii)
we believe we have sufficient capital resources including cash generated from operations as well as cash on hand to
meet our anticipated cash operating expenses, working capital and capital expenditure and debt services needs for the
next twelve months;
(xiv)
we expect our deployable communication system terminals will be provided more broadly in the U.S. military;
(xv)
steep growth in spending to the multi-billion dollar level by U.S. federal agencies on cyber initiatives are expected
over the next five years;
(xvi)
we expect our revenue from messaging to continue declining, text messaging continues to be the most popular type of
messaging for mobile users;
(xvii)
we expect that we will continue to compete primarily on the basis of the functionality, breadth, time to market, ease
of integration, price, and quality of our products and services, as well as our market experience, reputation, and price;
(xviii)
we expect to realize revenue from our backlog;
(xix)
a sustained, significant decline in the Company’s stock price and market capitalization, a decline in the Company’s
expected future cash flows, a significant adverse change in legal factors or in the business climate, unanticipated
competition, and/or slower growth , among others, may indicate an impairment of our goodwill;
