Avid 2006 Annual Report Download - page 28

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18
Our websites may subject us to legal claims that could harm our business.
Some of our websites provide interactive information and services to our customers. To the extent that materials
may be posted on or downloaded from our websites and distributed to others, we may be subject to claims for
defamation, negligence, copyright or trademark infringement, personal injury or other theories of liability based
on the nature, content, publication or distribution of such materials. In addition, we may also be subject to claims
for indemnification by end users in the event that the security of our websites is compromised. Our websites are
available on a worldwide basis and may potentially be subject to a wide variety of international laws. The potential
impact of these risks on our business could be substantial.
If we experience problems with our third-party leasing program, our revenues may be adversely impacted.
We have an established leasing program with a third party that allows qualified customers to finance purchases of
our products. If this program ended abruptly or unexpectedly, some customers would likely be unable to purchase
our products unless or until they were able to arrange for alternative financing. To the extent such customers were
precluded from, or delayed in, making product purchases, our revenues may decline.
The market price of our common stock has been and may continue to be volatile.
The market price of our common stock has experienced volatility in the past and may continue to fluctuate
substantially in the future in response to various factors, some of which are beyond our control. These factors
include, but are not limited to:
•฀ period-to-period variations in our revenues or operating results;
•฀ our failure to accurately forecast quarterly or annual revenues or operating results;
•฀ shortfalls in our revenues or earnings compared to expectations;
•฀ changes in investors’ perceptions of us or our competitors;
•฀ announcements by us or our competitors of acquisitions, new products, significant contracts, commercial
relationships or capital commitments;
•฀ shifts in markets or demand for our products;
•฀ our ability to develop and market new or upgraded products on a timely basis;
•฀ changes in our relationships with suppliers, resellers, distributors or customers;
•฀ our commencement of, or our involvement in, litigation;
•฀ changes to our board of directors or management;
•฀ the volume of shares of our common stock available for public sale;
•฀ short sales, hedging or other derivative transactions involving shares of our common stock;
•฀ shifts in financial markets;
•฀ changes in governmental regulations; and
•฀ global macroeconomic conditions.
Additionally, broader financial market trends may negatively affect the market price of our common stock,
regardless of our operating performance.