VRSN » Topics » Our operating results may be adversely affected by the current economic downturn, unfavorable market and economic conditions.

This excerpt taken from the VRSN 10-Q filed Nov 7, 2008.

Our operating results may be adversely affected by the current economic downturn, unfavorable market and economic conditions.

The current economic downturn in the U.S. may have a significant negative impact on demand for our services and our ability to conduct our business. As the consequences of the economic downturn continue to spread overseas, these conditions may also negatively impact our foreign operations. The economic downturn may negatively impact, among other things:

 

   

current and future demand for our services, including decreases as a result of reduced spending on information technology and communications by our customers;

 

   

our liquidity;

 

   

our ability to service our debt, to obtain financing or assume new debt obligations;

 

   

our ability to execute on any stock repurchase plans;

 

   

the price of our common stock;

 

   

the ability of our suppliers to continue to fill our orders;

 

   

our customers’ continued growth and development of their businesses;

 

   

our ability to obtain payment for outstanding debts owed to us by our customers or other parties with whom we do business; and

 

   

price competition for our products and services.

In addition, to the extent that the economic downturn impacts specific industry sectors in which many of our customers are concentrated, that may further negatively impact our business. If the economic and market conditions in the U.S. and globally do not improve, or if they further deteriorate, we may experience material adverse impacts on our business, operating results and financial condition as a consequence of the above factors or otherwise.

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