Citrix 2009 Annual Report Download - page 39

Our stock price could be volatile, particularly during times of economic uncertainty and volatility in domestic
and international stock markets, and you could lose the value of your investment.
Our stock price has been volatile and has fluctuated significantly in the past. The trading price of our stock
is likely to continue to be volatile and subject to fluctuations in the future. Your investment in our stock could
lose some or all of its value. Some of the factors that could significantly affect the market price of our stock
include:
• actual or anticipated variations in operating and financial results;
• analyst reports or recommendations;
• changes in interest rates; and
• other events or factors, many of which are beyond our control.
The stock market in general, The NASDAQ Global Select Market, and the market for software companies
and technology companies in particular, have experienced extreme price and volume fluctuations. These
fluctuations have often been unrelated or disproportionate to operating performance. These forces reached
unprecedented levels in the second half of 2008, resulting in the bankruptcy or acquisition of, or government
assistance to, several major domestic and international financial institutions and a material decline in economic
conditions. In particular, the U.S. equity markets experienced significant price and volume fluctuations that have
affected the market prices of equity securities of many technology companies. During 2009, our stock price has
experienced volatility, with the closing price of our common stock on The NASDAQ Global Select Market
having ranged from $20.00 on March 2, 2009 to $43.78 on October 12, 2009. These broad market and industry
factors could materially and adversely affect the market price of our stock, regardless of our actual operating
performance.
Changes or modifications in financial accounting standards related to business combinations may have a
material adverse impact on our reported results of operations.
In December 2007, authoritative guidance was issued in regards to business combinations.The guidance
requires, among other things, the expensing of direct transaction costs, including deal costs and restructuring
costs as incurred and acquired in-process research and development, or IPR&D, assets to be capitalized, certain
contingent assets and liabilities to be recognized at fair value, and arrangements related to contingent merger
consideration may be required to be measured at fair value until settled, with changes in fair value recognized
each period into earnings. Historically, we have been acquisitive and if we continue to be so, the authoritative
guidance could have a material impact on our consolidated financials, results of operations and cash flows if we
enter into any material business combinations.
Our business is subject to seasonal fluctuations.
Our business is subject to seasonal fluctuations. Historically, our net revenues have fluctuated quarterly and
have generally been the highest in the fourth quarter of our fiscal year due to corporate calendar year-end
spending trends. In addition, our European operations generally provide lower revenues in the summer months
because of the generally reduced level of economic activity in Europe during the summer. This seasonal factor
also typically results in higher fourth quarter revenues. Quarterly results are also affected by the timing of the
release of new products and services. Because of the seasonality of our business, results for any quarter,
especially our fourth quarter, are not necessarily indicative of the results that may be achieved for the full fiscal
year.
Funds from certain of our auction rate securities may not be accessible within 12 months.
As of December 31, 2009, we held municipal auction rate securities, of which substantially all were triple-A
rated, with an aggregate par value of approximately $44.8 million, whose underlying assets are generally student
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