Avid 2011 Annual Report Download - page 13

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8
• Promote environmental responsibility in our supply chain.
• Adopt the principles of reduce, reuse, and recycle while promoting waste-reduction programs in our global operations.
• Continue compliance with global laws and directives affecting our products and operations.
Our Environmental Packaging Standard calls for a transition to between 50% and 75% recycled content in packaging materials,
environmentally friendly inks and reduced packaging sizes. The latest versions of our Media Composer, Symphony, NewsCutter
and Pro Tools products ship with electronic manuals only, which has reduced the packaging sizes by approximately 85%. We will
continue to reduce documentation package sizes for the next releases of many of our products.
In 2011, 2010 and 2009, our expenses directly related to compliance with environmental laws were not material. We expect our
2012 environmental compliance costs to also be immaterial.
WEB SITE ACCESS
We make available free of charge on our website, www.avid.com, copies of our annual reports on Form 10-K, our quarterly
reports on Form 10-Q, our current reports on Form 8-K and all amendments to those reports as soon as practicable after filing
with the Securities and Exchange Commission, or SEC. Additionally, we will provide paper copies of all of these filings free of
charge upon request. Alternatively, these reports can be accessed at the SEC's Internet website at www.sec.gov. The information
contained on our web site shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange
Act.
ITEM 1A. RISK FACTORS
Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described
below in addition to the other information included or incorporated by reference in this annual report before making an
investment decision regarding our common stock. If any of the following risks were to actually occur, our business, financial
condition or operating results would likely suffer, possibly materially, the trading price of our common stock could decline, and
you could lose part or all of your investment.
The market segments in which we operate are highly competitive, and our competitors may be able to draw upon a
greater depth and breadth of resources than those that are available to us.
We operate in highly competitive market segments characterized by pressure to innovate, expand feature sets and functionality,
accelerate new product releases and reduce prices. Markets for certain of our products also have limited barriers to entry. There is
an additional risk of consolidation among our competitors, which could result in fewer, more effective competitors. Customers
consider many factors when evaluating our products relative to those of our competitors, including innovation, ease of use, price,
feature sets, functionality, reliability, performance, reputation, and training and support, and we may not compare favorably
against our competitors in all respects. Some of our current and potential competitors have longer operating histories, greater
brand recognition and substantially greater financial, technical, marketing, distribution and support resources than we do. As a
result, they may be able to deliver greater innovation, respond more quickly to new or emerging technologies and changes in
market demand, devote more resources to the development, marketing and sale of their products, successfully expand into
emerging and other international markets, or price their products more aggressively than we can.
If our competitors are more successful than we are in developing products or in attracting and retaining customers, our financial
condition and operating results could be adversely affected.
A significant decrease in our liquidity could negatively affect our business.
Maintaining adequate liquidity is important to our business operations. We meet our liquidity needs primarily through cash
generated by operations, which we have supplemented from time to time with borrowings under our credit facility. Significant
fluctuations in our cash balances could affect our ability to meet our immediate liquidity needs, impair our capacity to react to
sudden or unexpected contractions or growth in our business, reduce our ability to withstand a sustained period of economic
crisis, cause us to draw on our credit facility and therefore reduce available funds under the facility, cause us to violate the
liquidity covenant under our credit agreement with Wells Fargo Capital Finance LLC (see “Liquidity and Capital Resources” in