Citrix 2012 Annual Report Download - page 30

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highly liquid securities and by limiting exposure to any one issuer depending on credit quality, we cannot give any assurances
that the assets in our investment portfolio will not lose value, become impaired, or suffer from illiquidity.
Future market conditions and volatility could require us to record impairment charges for other-than-temporary declines
in fair market value in our available-for-sale investments, which could adversely affect our results of operations. Moreover,
fluctuations in economic and market conditions could adversely affect the market value of our investments, and we could lose
some of the principal value of our investment portfolio. A total loss of an investment, dependent on an individual security's par
value, or a significant decline in the value of our investment portfolio could adversely affect our financial condition.
In addition, we invest in private companies to further our strategic objectives and support our key business initiatives.
Such investments include equity or debt instruments, and many of these instruments are non-marketable at the time of our
initial investment. The companies in which we invest may fail or lose value because they may not be able to secure additional
funding, obtain favorable investment terms for future financings, or participate in liquidity events such as public offerings,
mergers, and private sales. If any of these private companies fail or lose value, we could be required to impair or write-off all or
part of our investment in that company.
Unanticipated changes in our tax rates or our exposure to additional income tax liabilities could affect our operating results
and financial condition.
Our future effective tax rates could be favorably or unfavorably affected by unanticipated changes in the valuation of our
deferred tax assets and liabilities, the geographic mix of our revenue, or by changes in tax laws or their interpretation.
Significant judgment is required in determining our worldwide provision for income taxes. In addition, we are subject to the
continuous examination of our income tax returns by tax authorities, including the Internal Revenue Service, or the IRS. We
regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our
provision for income taxes. There can be no assurance, however, that the outcomes from these continuous examinations will
not have an adverse effect on our operating results and financial condition. Additionally, due to the evolving nature of tax rules
combined with the large number of jurisdictions in which we operate, it is possible that our estimates of our tax liability and the
realizability of our deferred tax assets could change in the future, which may result in additional tax liabilities and adversely
affect our results of operations, financial condition and cash flows.
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;
• rumors, announcements, or press articles regarding our or our competitors' operations, management, organization,
financial condition, or financial statements; 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, continuing through 2012. During 2012, our stock price has experienced volatility, with the closing price of our
common stock on The NASDAQ Global Select Market having ranged from $57.34 on November 14, 2012 to $87.30 on May 1,
2012. 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 may have a material adverse impact on our reported results of
operations or financial condition.
From time to time, the Financial Accounting Standards Board, or FASB, either alone or jointly with the International
Accounting Standards Board, or IASB, promulgates new accounting principles that could have a material adverse impact on
our reported results of operations or financial condition. For example, FASB is currently working together with the IASB to