INFN » Topics » Product performance problems, including undetected errors in our hardware or software, could harm our business and reputation.

This excerpt taken from the INFN 10-Q filed May 7, 2009.

Product performance problems, including undetected errors in our hardware or software, or deployment delays could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures due to the receipt of faulty components from our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

   

delays in collecting accounts receivable;

 

   

payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customers’ site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, the associated revenue for these installations may be delayed or confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

This excerpt taken from the INFN 10-K filed Feb 17, 2009.

Product performance problems, including undetected errors in our hardware or software, or deployment delays could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures due to the receipt of faulty

 

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components from our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

   

delays in collecting accounts receivable;

 

   

payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customers’ site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, the associated revenue for these installations may be delayed or confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

This excerpt taken from the INFN 10-Q filed Oct 31, 2008.

Product performance problems, including undetected errors in our hardware or software, could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures due to the receipt of faulty components from our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

 

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Table of Contents

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

   

delays in collecting accounts receivable;

 

   

payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customers’ site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

This excerpt taken from the INFN 10-Q filed Jul 25, 2008.

Product performance problems, including undetected errors in our hardware or software, could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures due to the receipt of faulty components from our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

 

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Table of Contents

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

   

delays in collecting accounts receivable;

 

   

payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customers’ site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

This excerpt taken from the INFN 10-Q filed May 1, 2008.

Product performance problems, including undetected errors in our hardware or software, could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures due to the receipt of faulty components from our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

50


   

delays in collecting accounts receivable;

 

   

payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customers’ site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

This excerpt taken from the INFN 10-K filed Feb 19, 2008.

Product performance problems, including undetected errors in our hardware or software, could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures due to the receipt of faulty components from our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have only been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

   

delays in collecting accounts receivable;

 

   

payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customers’ site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

This excerpt taken from the INFN 10-Q filed Nov 9, 2007.

Product performance problems, including undetected errors in our hardware or software, could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures due to the receipt of faulty components from our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have only been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

   

delays in collecting accounts receivable;

 

   

payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

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Table of Contents
   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customers’ site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

This excerpt taken from the INFN 10-Q filed Aug 1, 2007.

Product performance problems, including undetected errors in our hardware or software, could harm our business and reputation.

The development and production of new products with high technology content, such as our DTN System, is complicated and often involves problems with software, components and manufacturing methods. Complex hardware and software products, such as our DTN System, can often contain undetected errors when first introduced or as new versions are released. We have experienced errors in the past in connection with our DTN System, including failures with application-specific integrated circuits due to the receipt of faulty components from one of our suppliers. We suspect that errors, including potentially serious errors, will be found from time to time in our DTN System. We have only been shipping our DTN System since November 2004, which provides us with limited information on which to judge its reliability. Our DTN System may suffer degradation of performance and reliability over time.

If reliability, quality or network monitoring problems develop, a number of negative effects on our business could result, including:

 

   

delays in our ability to recognize revenue;

 

   

costs associated with fixing software or hardware defects or replacing products;

 

   

high service and warranty expenses;

 

   

delays in shipments;

 

   

high inventory excess and obsolescence expense;

 

   

high levels of product returns;

 

   

diversion of our engineering personnel from our product development efforts;

 

   

delays in collecting accounts receivable;

 

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payment of damages for performance failures;

 

   

reduced orders from existing customers; and

 

   

declining interest from potential customers.

Because we outsource the manufacturing of certain components of our DTN System, we may also be subject to product performance problems as a result of the acts or omissions of these third parties.

From time to time, we encounter interruptions or delays in the activation of our DTN System at a customer’s site. These interruptions or delays may result from product performance problems or from issues with installation and activation, some of which are outside our control. If we experience significant interruptions or delays that we cannot promptly resolve, confidence in our DTN System could be undermined, which could cause us to lose customers and fail to add new customers.

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