Citrix 2014 Annual Report Download - page 32

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If we lose access to third-party licenses, releases of our products could be delayed.
We believe that we will continue to rely, in part, on third-party licenses to enhance and differentiate our products. Third-
party licensing arrangements are subject to a number of risks and uncertainties, including:
• undetected errors or unauthorized use of another person’s code in the third party’s software;
• disagreement over the scope of the license and other key terms, such as royalties payable and indemnification
protection;
• infringement actions brought by third-parties;
• that third parties will create solutions that directly compete with our products; and
• termination or expiration of the license.
If we lose or are unable to maintain any of these third-party licenses or are required to modify software obtained under
third-party licenses, it could delay the release of our products. Any delays could have a material adverse effect on our business,
results of operations and financial condition.
RISKS RELATED TO OUR COMMON STOCK, OUR DEBT AND EXTERNAL FACTORS
Natural disasters or other unanticipated catastrophes that result in a disruption of our operations could negatively impact
our results of operations.
Our worldwide operations are dependent on our network infrastructure, internal technology systems and website.
Significant portions of our computer equipment, intellectual property resources and personnel, including critical resources
dedicated to research and development and administrative support functions are presently located at our corporate headquarters
in Fort Lauderdale, Florida, an area of the country that is particularly prone to hurricanes, and at our various locations in
California, an area of the country that is particularly prone to earthquakes. We also have operations in various domestic and
international locations that expose us to additional diverse risks. The occurrence of natural disasters, such as hurricanes, floods
or earthquakes, or other unanticipated catastrophes, such as telecommunications failures, cyber-attacks, fires or terrorist attacks,
at any of the locations in which we or our key partners, suppliers and customers do business, could cause interruptions in our
operations. For example, hurricanes have passed through southern Florida causing extensive damage to the region. In addition,
even in the absence of direct damage to our operations, large disasters, terrorist attacks or other casualty events could have a
significant impact on our partners’, suppliers’ and customers’ businesses, which in turn could result in a negative impact on our
results of operations. Extensive or multiple disruptions in our operations, or our partners’, suppliers’ or customers’ businesses,
due to natural disasters or other unanticipated catastrophes could have a material adverse effect on our results of operations.
Servicing our debt will require a significant amount of cash, which could adversely affect our business, financial condition
and results of operations.
We have aggregate indebtedness of approximately $1.4 billion that we have incurred in connection with the issuance of
our Convertible Notes and under our Credit Agreement, and we may incur additional indebtedness in the future. Our ability to
make scheduled payments of the principal of, to pay interest on or to refinance our future indebtedness, depends on our future
performance, which is subject to economic, financial, competitive and other factors beyond our control. Our business may not
generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. If we
are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets,
restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to
refinance our indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to
engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt
obligations. See “Management's Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting
Policies and Estimates” and Notes 12 and 13 to our consolidated financial statements included in this Annual Report on Form
10-K for the year ended December 31, 2014 for information regarding our Convertible Notes and our Credit Facility.
In addition, holders of the Convertible Notes will have the right to require us to repurchase their Convertible Notes upon
the occurrence of a fundamental change at a fundamental change repurchase price equal to 100% of the principal amount of the
Convertible Notes to be repurchased, plus accrued and unpaid interest, if any. Further, upon conversion of the Convertible
Notes, we will be required to make cash payments for each $1,000 in principal amount of Convertible Notes converted of at
least the lesser of $1,000 and the sum of the daily conversion values thereunder. However, we may not have enough available
cash or be able to obtain financing at the time we are required to make repurchases of Convertible Notes surrendered therefor
or Convertible Notes being converted. In addition, our ability to repurchase the Convertible Notes or to pay cash upon
conversions of the Convertible Notes may be limited by law, by regulatory authority or by agreements governing our future
indebtedness. Our failure to repurchase Convertible Notes at a time when the repurchase is required by the indenture or to pay
any cash payable on future conversions of the Convertible Notes as required by the indenture would constitute a default under