Adobe 2001 Annual Report Download - page 33

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share of $0.02 per share in fiscal year 2002. The proposed acquisition is subject to the execution of
customary transaction documents and the satisfaction of customary closing conditions, including the
approval of Accelio’s shareholders and clearance of the acquisition by U.S. and Canadian regulatory
authorities. If these conditions are not satisfied, we may not complete the acquisition. Initially the
transaction was expected to close in March 2002. However, due to certain regulatory and timing
requirements, we are now targeting to close in April 2002.
In connection with this proposed acquisition, we may not be successful in integrating Accelio or
developing products based on Accelio’s technology or expertise. We also may not be successful in
integrating its distribution channels with ours. Additionally, we may face unanticipated expenses relating to
the integration of Accelio personnel and its products, distribution channels, and administrative functions.
We use these targets to assist us in making decisions about our allocation of resources and
investments, not as predictions of future results. The targets reflect a number of assumptions, including
assumptions about:
• product pricing and demand
• manufacturing costs and volumes
• the mix of application products and licensing revenue, full and upgrade products, distribution
channels, and geographic distribution
• headcount increases
These and many other factors described in this report affect our financial performance and may cause
our future results, including results for the current quarter, to vary materially from these targets. In
particular, the recent slow-down in some geographic areas, primarily in the U.S., Europe, and Japan, has
affected all of our product segments and may adversely affect our ability to achieve our revenue targets.
We attribute this slow-down, which is affecting all of our product segments, to weakening economic
conditions. These adverse economic conditions in the U.S., Europe, Japan, and potentially other
geographic markets may continue in the short term, and they may continue to adversely affect our revenue
and earnings. Although there were also adverse conditions in other countries, the countries affected
represent a much smaller portion of our revenue and thus have less impact on our operational results.
Furthermore, if the economic slow-down worsens or spreads to other geographic areas where we do
business, it would likely cause our future results, including results for the first quarter of fiscal 2002, to vary
materially from our targets.
We plan to recruit key talent for our future growth. These plans to continue to invest in certain areas
will require us to continue to hire additional employees. Competition for high-quality personnel, especially
highly skilled engineers, is extremely intense. Our ability to effectively manage this growth will require us
to continue to improve our operational and financial controls and information management systems, and
to attract, retain, motivate, and manage employees effectively; otherwise our business could be seriously
harmed.
Our ability to develop and market products, including upgrades of current products that successfully
adapt to changing customer needs, may also have an impact on our results of operations. Our ability to
extend our core technologies into new applications and to anticipate or respond to technological changes
could affect our ability to develop these products. A portion of our future revenue will come from these
new applications. Delays in product or upgrade introductions could cause a decline in our revenue,
earnings, or stock price. We cannot determine the ultimate effect that these new products or upgrades will
have on our revenue or results of operations.
We hold equity investments that have recently experienced significant declines in market value. We
also have investments, and may continue to make future investments, in several privately held companies,
many of which can still be considered in the start-up or development stages. These investments are
inherently risky, as the market for the technologies or products they have under development is typically in
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