Avid 1997 Annual Report Download - page 26

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19
Company has generally not hedged transactions with external parties, although it periodically re-evaluates its hedging
practices.
The Company is involved in various legal proceedings, including patent and securities litigation; an adverse resolution of
any such proceedings could have a material adverse effect on the Company’s business and results of operations. See Note K
to Consolidated Financial Statements, and ITEM 3, “Legal Proceedings.” This litigation has also been described in
previously filed reports on Form 10-Q and 10-K.
The Company recognizes that it must ensure that its products and operations will not be adversely impacted by year 2000
software failures (the “Year 2000 issue”) which can arise in time-sensitive software applications which utilize a field of two
digits to define the applicable year. In such applications, a date using “00” as the year may be recognized as the year 1900
rather than the year 2000. In general, the Company expects to resolve Year 2000 issues through planned replacement or
upgrades. In addition, the Company expects that any costs incurred to modify its internal systems will not be material.
Although management does not expect Year 2000 issues to have a material impact on its business or future results of
operations, there can be no assurance that there will not be interruptions of operations or other limitations of system
functionality or that the Company will not incur significant costs to avoid such interruptions or limitations.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Not applicable.