Citrix 2009 Annual Report Download - page 29

Acquisitions present many risks, and we may not realize the financial and strategic goals we anticipate at the
time of an acquisition.
Our growth is dependent upon market growth, our ability to enhance existing products and services, and our
ability to introduce new products and services on a timely basis. We intend to continue to address the need to
develop new products and services and enhance existing products and services through acquisitions of other
companies, product lines and/or technologies. However, acquisitions, including those of high-technology
companies, are inherently risky. We cannot provide any assurance that any of our previous acquisitions,
including our acquisitions over the past three years, or future acquisitions will be successful in helping us reach
our financial and strategic goals either for that acquisition or for us generally or that the combined company
resulting from any acquisition will continue to support the growth achieved by the companies separately.
The risks we commonly encounter in managing and integrating acquisitions are:
• difficulties and delays integrating the operations, technologies, and products of the acquired
companies;
• undetected errors or unauthorized use of a third-party’s code in products of the acquired companies;
• the diversion of management’s attention from normal daily operations of the business;
• potential difficulties in completing projects associated with purchased in-process research and
development;
• entry into markets in which we have no or limited direct prior experience and where competitors have
stronger market positions and which are highly competitive;
• the potential loss of key employees of the acquired company; and
• an uncertain revenue and earnings stream from the acquired company, which could unexpectedly dilute
our earnings.
Our failure to manage growth effectively and successfully integrate acquired companies due to these or
other factors could have a material adverse effect on our business, results of operations and financial condition.
Attractive acquisition opportunities may not be available to us, which could negatively affect the growth of our
business.
Our business strategy includes the selective acquisition of businesses and technologies. In the three years
ended December 31, 2009, we completed one significant acquisition with the acquisition of XenSource in 2007.
We plan to continue to seek opportunities to expand our product portfolio, customer base, technology, and
technical talent through acquisitions. However, we may not have the opportunity to make suitable acquisitions on
favorable terms in the future, which could negatively impact the growth of our business. We expect that other
companies in our industry will compete with us to acquire compatible businesses. This competition could
increase prices for businesses and technologies that we would likely pursue, and our competitors may have
greater resources than we do to complete these acquisitions.
If we determine that any of our goodwill or intangible assets, including technology purchased in acquisitions,
are impaired, we would be required to take a charge to earnings, which could have a material adverse effect
on our results of operations.
We have a significant amount of goodwill and other intangible assets, such as product related intangible
assets, related to our acquisitions. We recorded significant additional goodwill and other intangible asset amounts
in connection with the acquisition of XenSource in 2007. We do not amortize goodwill and intangible assets that
are deemed to have indefinite lives. However, we do amortize certain product related technologies, trademarks,
patents and other intangibles and we periodically evaluate them for impairment. We review goodwill for
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