VOLT Volt Information Sciences, Inc.

Risks

• The contingent staffing industry is very competitive with few significant barriers to entry
• Our business is adversely affected by weak economic and other business conditions
• Our credit facility contains financial covenants that may limit our ability to take certain actions
• The inability to renew our credit facility could negatively affect our operations and limit our liquidity
• We may not be able to execute successfully on our business strategies or achieve the intended results
• We could incur liabilities or our reputation could be damaged from a cyber-attack or improper disclosure or loss of sensitive or confidential company, employee, associate, candidate or client data, including personal data
• We are subject to employment–related claims, commercial indemnification claims and other claims and losses that could have a material adverse effect on our business
• Costs related to litigation, legal proceedings and investigations could adversely impact our financial condition
• The loss of major customers could adversely impact our business
• New or increased government regulation, employment costs or taxes could have a material adverse effect on our business, especially for our contingent staffing business
• Our operational results could be negatively impacted by currency fluctuations and other global business risks and regulations
• The United Kingdom’s (“U.K.”) referendum to exit from the European Union (“E.U.”) will continue to have uncertain effects and could adversely impact our business, results of operations and financial condition
• Fluctuations in interest rates and turmoil in the financial markets could increase our cost of borrowing and impede access to or increase the cost of financing our operations
• Many of our contracts provide no minimum purchase requirements, are cancellable during the term, or both
• Our results of operations and ability to grow may be negatively affected if we are not able to keep pace with rapid changes in technology
• We rely extensively on our information technology systems which are vulnerable to damage and interruption
• We are dependent upon the quality of our personnel
• Changes in sentiment toward the staffing industry could affect the marketplace for our services
• Our ability to retain acceptable insurance coverage limits at commercially reasonable cost and terms may adversely impact our financial results
• Unexpected changes in workers’ compensation and other insurance plans may negatively impact our financial condition
• Decline in our operating results could lead to impairment charges relating to our goodwill and long-lived assets
• Our stock price could be volatile and, as a result, investors may not be able to resell their shares at or above the price they paid for them
• Certain shareholders, whose interests may differ from those of other shareholders, own a significant percentage of our common stock and are able to exercise significant influence over Volt
• New York State law and our Articles of Incorporation and By-laws contain provisions that could make corporate ownership changes at Volt more difficult