Autodesk 2012 Annual Report Download - page 85

• the inability to retain customers, vendors, distributors, business partners, and other entities associated with the acquired
• the potential impact on relationships with existing customers, vendors, distributors as business partners as a result of
• the potential that due diligence of the acquired business or product does not identify significant problems;
• the potential any one or multiple of the investments become impaired in a given reporting period;
• the potential for incompatible business cultures; and
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• significant transaction or integration-related costs.
We may not be successful in overcoming such risks, and such acquisitions and investments may negatively impact our
business. In addition, such acquisitions and investments have in the past and may in the future contribute to potential
fluctuations in our quarterly financial results These fluctuations could arise from transaction-related costs and charges
associated with eliminating redundant expenses or write-offs of impaired assets recorded in connection with acquisitions and
investments. These costs or charges could negatively impact our financial results for a given period, cause quarter to quarter
variability in our financial results or negatively impact our financial results for several future periods.
The current global economic uncertainty may impact our business forcing us to take actions that could be costly and may not
be as effective as we anticipate, and may force us to take additional actions to reduce our expenses and stimulate demand for
our products.
The current global economic uncertainty may lead to a reduction of our revenue levels and force us to take actions to
reduce our cost structure to more closely align our costs with our reduced revenue levels. Over the past several years we have
on several occasions taken such actions. In taking any future restructuring actions, we may incur, and over the past several
years have incurred, additional costs that negatively impact our operating margins. If we do not achieve the proper balance of
these cost reduction initiatives, we may eliminate critical elements of our operations, the loss of which could negatively impact
our ability to benefit from eventual economic growth.
In addition, such global economic uncertainty and resulting impact on our business may cause us to take, and over the
past several years we have taken, actions to stimulate demand for our products through a number of programs. Although we
attempt to balance the cost of these programs against the longer term benefits, it is possible that we will make such investments
without corresponding increases in demand for our products and our revenue. This would further reduce our operating margins
and have a negative impact on our financial results.
Net revenue or earnings shortfalls or the volatility of the market generally may cause the market price of our stock to decline.
The market price for our common stock has experienced significant fluctuations and may continue to fluctuate
significantly. The market price for our common stock may be affected by a number of factors, including the other factors
described in this Part I, Item 1A and the following:
• changes in estimates of future results or recommendations by securities analysts;
• the announcement of new products or product enhancements by us or our competitors;
• shortfalls in our expected financial results, including net revenue, earnings or key performance metrics;
• quarterly variations in our or our competitors' results of operations;
• unusual events such as significant acquisitions, divestitures, regulatory actions and litigation;
• changes in laws, rules or regulations applicable to our business;
• general socio-economic, political or market conditions; and
• other factors, including factors unrelated to our operating performance, such as instability affecting the economy or the
operating performance of our competitors.
Significant changes in the price of our common stock could expose us to additional costly and time-consuming litigation.
Historically, after periods of volatility in the market price of a company's securities, a company becomes more susceptible to
securities class action litigation. This type of litigation is often expensive and diverts management's attention and resources.
Our strategy to develop and introduce new product and service offerings, including new product features, exposes us to risks
such as limited customer acceptance, costs related to product defects and large expenditures that may not result in additional
net revenue.
Rapid technological changes, as well as changes in customer requirements and preferences, characterize the software
industry. We devote significant resources to the development of new technologies, such as our design and entertainment
products and our digital prototyping and collaboration products. In addition, we frequently introduce new business models or
methods that require a considerable investment of technical and financial resources such as an increase in our portfolio of, and
focus on, suites. We are making such investments through further development and enhancement of our existing products, as
well as through acquisitions of new product lines. Such investments may not result in sufficient revenue generation to justify
their costs, or competitors may introduce new products and services that achieve acceptance among our current customers,
adversely affecting our competitive position.
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2012 Annual Report