Autodesk 2014 Annual Report Download - page 93

2013 Annual Report
2014 Form 10-K 19
 failure to continue momentum of frequent release cycles or to move a significant number of customers from prior
product versions in connection with our programs to retire major products,
 changes in tax laws or regulations, tax arrangements with foreign governments or accounting rules, such as increased
use of fair value measures,
 changes in sales compensation practices,
 failure to effectively implement our copyright legalization programs, especially in developing countries,
 failure to achieve sufficient sell-through in our channels for new or existing products,
 renegotiation or termination of royalty or intellectual property arrangements,
 interruptions or terminations in the business of our consultants or third party developers,
 the timing and degree of expected investments in growth and efficiency opportunities,
 failure to achieve continued success in technology advancements,
 catastrophic events or natural disasters,
 regulatory compliance costs,
 costs associated with acquisitions of companies and technologies,
 potential goodwill impairment charges related to prior acquisitions, and
 adjustments arising from ongoing or future tax examinations.
We have also experienced fluctuations in financial results in interim periods in certain geographic regions due to
seasonality or regional economic conditions. In particular, our financial results in Europe during our third quarter are usually
affected by a slower summer period, and our Asia Pacific operations typically experience seasonal slowing in our third and
fourth quarters.
Our operating expenses are based in part on our expectations for future revenue and are relatively fixed in the short term.
Accordingly, any revenue shortfall below expectations have had, and in the future could have, an immediate and significant
adverse effect on our profitability. Greater than anticipated expenses or a failure to maintain rigorous cost controls would also
negatively affect profitability.
Our business could suffer as a result of risks, costs and charges associated with strategic acquisitions and investments such as
our fiscal 2015 acquisition of Delcam plc (“Delcam”).
We regularly acquire or invest in businesses, software products and technologies that are complementary to our business
through acquisitions, strategic alliances or equity or debt investments. For example, we recently acquired Delcam, a leading
supplier of advanced CADCAM and industrial measurement solutions for the manufacturing industry. The risks associated with
such acquisitions include, among others, the difficulty of assimilating products, operations and personnel, inheriting liabilities
such as intellectual property infringement claims, the failure to realize anticipated revenue and cost projections, the requirement
to test and assimilate the internal control processes of the acquired business in accordance with the requirements of Section 404
of the Sarbanes-Oxley Act of 2002 and the diversion of management's time and attention.
In addition, such acquisitions and investments involve other risks such as:
 the inability to retain customers, key employees, vendors, distributors, business partners, and other entities associated
with the acquired business;