CPSI 2017 Annual Report

i SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as "expects," "anticipates," "estimates," "believes," "predicts," "intends," "plans," "potential," "may," "continue," "should," "will" and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this Annual Report relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and future financial results are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward- looking statements. Such factors may include: • overall business and economic conditions affecting the healthcare industry, including the effects of the federal healthcare reform legislation enacted in 2010, and implementing regulations, on the businesses of our hospital customers; • government regulation of our products and services and the healthcare and health insurance industries, including changes in healthcare policy affecting Medicare and Medicaid reimbursement rates and qualifying technological standards; • changes in customer purchasing priorities, capital expenditures and demand for information technology systems; • saturation of our target market and hospital consolidations; • general economic conditions, including changes in the financial and credit markets that may affect the availability and cost of credit to us or our customers; • our substantial indebtedness, and our ability to incur additional indebtedness in the future; • our potential inability to generate sufficient cash in order to meet our debt service obligations; • restrictions on our current and future operations because of the terms of our senior secured credit facilities; • market risks related to interest rate changes; • competition with companies that have greater financial, technical and marketing resources than we have; • failure to develop new technology and products in response to market demands; • failure of our products to function properly resulting in claims for medical and other losses; • breaches of security and viruses in our systems resulting in customer claims against us and harm to our reputation; • failure to maintain customer satisfaction through new product releases free of undetected errors or problems; • interruptions in our power supply and/or telecommunications capabilities, including those caused by natural disaster; • our ability to attract and retain qualified client service and support personnel; • failure to properly manage growth in new markets we may enter; • misappropriation of our intellectual property rights and potential intellectual property claims and litigation against us; • changes in accounting principles generally accepted in the United States of America; • significant charge to earnings if our goodwill or intangible assets become impaired; and • fluctuations in quarterly financial performance due to, among other factors, timing of customer installations. For more information about the risks described above and other risks affecting us, see "Risk Factors" beginning on page 19 of this Annual Report. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this Annual Report.

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