Citrix 2014 Annual Report Download - page 21

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15
Our business could be adversely impacted by conditions affecting the information technology market.
The demand for our products and services depends substantially upon the general demand for business-related computer
appliances and software, which fluctuates based on numerous factors, including capital spending levels, the spending levels and
growth of our current and prospective customers, and general economic conditions. Moreover, the purchase of our products and
services is often discretionary and may involve a significant commitment of capital and other resources. U.S economic
forecasts for the information technology, or IT, sector are uncertain and continue to highlight an industry in transition from
legacy platforms to mobile, cloud, big data and social solutions. If our current and prospective customers cut costs they may
significantly reduce their information technology expenditures. Additionally, if our current and prospective customers shift their
IT spending more rapidly towards newer technologies and solutions as mobile, cloud, big data and social platforms evolve, the
demand for our products and services most aligned with legacy platforms (such as our Desktop Virtualization products) could
decrease. Fluctuations in the demand for our products and services could have a material adverse effect on our business, results
of operations and financial condition.
If we do not develop new products and services, integrate acquired products and services and enhance our existing products
and services, our business, results of operations and financial condition could be adversely affected.
The markets for our products and services are characterized by:
• rapid technological change;
• evolving industry standards;
• fluctuations in customer demand;
• changing and increasingly sophisticated customer needs; and
• frequent new product and service introductions and enhancements.
U.S. economic forecasts for the IT sector are uncertain and continue to highlight an industry in transition from legacy
platforms to mobile, cloud, big data and social solutions. Our future success depends on our ability to adapt to this fluid market
and continually enhance our current products and services, integrate acquired products and services, and develop and introduce
new products and services that our customers choose to buy. The emerging markets for our next generation of products and
services have yet to be defined. The introduction of third-party solutions embodying new technologies and the emergence of
new industry standards could make our existing and future software solutions obsolete and unmarketable. If we are unable to
keep pace with technological developments of third parties, expectations of the emerging markets and customer demands by
introducing new products and services and enhancements, our business, results of operations and financial condition could be
adversely affected. Our future success could be hindered by:
• delays in our introduction of new products and services;
• delays in or lack of market acceptance of new products and services or new releases of our current products and
services;
• our failure to support services in a timely manner;
• our failure to identify and address significant product quality issues;
• our inability to position our and/or price our products and services to meet the market demand;
• our failure to maintain relevance and brand loyalty in the evolving marketplace; and
• the introduction of new products, services or technologies from third parties that could replace, make obsolete or
shorten the life cycle of our existing product and service offerings.
We believe the demand for technology has and will continue to shift from the types of products and services we and our
competitors have sold in the past to a new generation of products and services. We cannot guarantee that our Workspace
Services solutions, Delivery Networking products and Mobility Apps products will achieve the broad market acceptance by our
channel and strategic partners, customers and prospective customers necessary to generate significant revenue in the future. In
addition, we cannot guarantee that we will be able to respond effectively to technological changes or new product
announcements by others. If we experience material delays or sales shortfalls with respect to our new products and services or
new releases of our current products and services, those delays or shortfalls could have a material adverse effect on our
business, results of operations and financial condition.
We face intense competition, which could result in customer loss, fewer customer orders and reduced revenues and margins.
We sell our products and services in intensely competitive markets. Some of our competitors and potential competitors
have significantly greater financial, technical, sales and marketing and other resources than we do. We compete based on our
ability to offer to our customers the most current and desired product and services features. We expect that competition will
continue to be intense, and there is a risk that our competitors’ products may be less costly or, especially with respect to our
Mobility Apps products, free, provide better performance or include additional features when compared to our products.