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Cautionary
Information Regarding Forward Looking Statements This presentation includes
forward-looking statements (rather than historical facts) that are subject
to risks and uncertainties that could cause actual results to differ
materially from those described. Although we believe that the expectations
expressed in these forward-looking statements are reasonable, we cannot
promise that our expectations will turn out to be correct. Our actual results
could be materially different from and worse than our expectations. With respect
to such forward-looking statements, we seek the protections afforded by the
Private Securities Litigation Reform Act of 1995. These risks include,
without limitation: (1) we may not be able to execute our strategy to be a
leading IT services and communications provider, which could adversely affect
our results of operations and cash flows; (2) we may not be able to grow
revenues from our growth products and services to offset declining revenues
from our traditional products and services, which could adversely affect our
results of operations and cash flows; (3) our failure to achieve operating
efficiencies will adversely affect our results of operations; (4) as a result
of our continuing review of our business, we may determine to undertake
further restructuring plans that would require additional charges, including
incurring facility exit and restructuring charges; (5) we may be unsuccessful
integrating acquisitions into our business, which could result in operating
difficulties, losses and other adverse consequences; (6) if we are unable to
adapt to changes in technology and customer demands, we may not remain
competitive, and our revenues and operating results could suffer; (7)
unfavorable general economic conditions could harm our business; (8) we may be
unable to successfully identify, manage and assimilate future acquisitions,
which could adversely affect our results of operations; (9) we face
significant competition in the communications and IT services industry that
could reduce our profitability; (10) failure to retain existing customers
could adversely affect our results of operations and cash flows; (11)
decisions by legislative or regulatory authorities, including the Federal
Communications Commission relieving incumbent carriers of certain regulatory
requirements, and possible further deregulation in the future, may restrict
our ability to provide services and may increase the costs we incur to
provide these services; (12) if we are unable to interconnect with AT&T,
Verizon and other incumbent carriers on acceptable terms, our ability to
offer competitively priced local telephone services will be adversely
affected; (13) our operating performance will suffer if we are not offered
competitive rates for the access services we need to provide our long distance
services; (14) we may experience reductions in switched access and reciprocal
compensation revenue; (15) that failure to obtain and maintain necessary
permits and rights-of-way could interfere with our network infrastructure and
operations; (16) we have substantial business relationships with several
large telecommunications carriers, and some of our customer agreements may
not continue due to financial difficulty, acquisitions, non-renewal or other
factors, which could adversely affect our wholesale revenue and results of
operations; (17) we obtain a majority of our network equipment and software
from a limited number of third-party suppliers; (18) work stoppages
experienced by other communications companies on whom we rely for service
could adversely impact our ability to provision and service our customers;
(19) our commercial and alliance arrangements may not be renewed or may not
generate expected benefits, which could adversely affect our results of
operations; (20) our consumer business is dependent on the availability of
third-party network service providers; (21) we face significant competition
in the Internet access industry that could reduce our profitability; (22) the
continued decline of our consumer access subscribers will adversely affect
our results of operations; (23) potential regulation of Internet service
providers could adversely affect our operations; (24) cyber security breaches
could harm our business; (25) privacy concerns relating to our business could
damage our reputation and deter current and potential users from using our
services; (26) interruption or failure of our network, information systems or
other technologies could impair our ability to provide our services, which
could damage our reputation and harm our operating results; (27) our business
depends on effective business support systems and processes; (28) if we, or
other industry participants, are unable to successfully defend against
disputes or legal actions, we could face substantial liabilities or suffer
harm to our financial and operational prospects; (29) we may be accused of
infringing upon the intellectual property rights of third parties, which is
costly to defend and could limit our ability to use certain technologies in
the future; (30) we may not be able to protect our intellectual property;
(31) we may be unable to hire and retain sufficient qualified personnel, and
the loss of any of our key executive officers could adversely affect us; (32)
government regulations could adversely affect our business or force us to
change our business practices; (33) our business may suffer if third parties
are unable to provide services or terminate their relationships with us; (34)
we may be required to recognize impairment charges on our goodwill and
intangible assets, which would adversely affect our results of operations and
financial position; (35) we may not realize our deferred tax assets, we may
have exposure to greater than anticipated tax liabilities and we may be
limited in the use of our net operating losses and certain other tax
attributes in the future; (36) our indebtedness could adversely affect our
financial health and limit our ability to react to changes in our industry;
(37) we may require substantial capital to support business growth, and this
capital may not be available to us on acceptable terms, or at all; (38) our
debt agreements include restrictive covenants, and failure to comply with
these covenants could trigger acceleration of payment of outstanding
indebtedness or limit our ability to draw on our revolving credit facility;
(39) we may reduce, or cease payment of, quarterly cash dividends; (40) our
stock price may be volatile; (41) provisions of our certificate of
incorporation, bylaws and other elements of our capital structure could limit
our share price and delay a change of control of the company; and (42) our
bylaws designate the Court of Chancery of the State of Delaware as the sole
and exclusive forum for certain types of actions and proceedings that may be
initiated by our stockholders, which could limit our stockholders
flexibility in obtaining a judicial forum for disputes with us or our
directors, officers or employees. These risks and uncertainties, as well as
other risks and uncertainties that could cause our actual results to differ significantly
from managements expectations, are not intended to represent a complete list
of all risks and uncertainties inherent in our business, and should be read
in conjunction with the more detailed cautionary statements and risk factors
included in our Annual Report on Form 10-K for the year ended December 31,
2013.
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