Computer Associates 2004 Annual Report Download - page 35

We believe that our products and technologies do not infringe the proprietary rights of third parties. Third parties, however, may
assert infringement claims against us in the future with respect to current or future products, and any such assertion
may require us to enter into royalty arrangements or result in costly and time-consuming litigation.
Competition
The markets in which we compete are marked by rapid and substantial technological change, the steady emergence of
new companies and products, evolving industry standards, and changing customer needs. Some of the factors with
which our products compete include, but are not limited to: performance, quality, breadth of product group, integration of
products, brand name recognition, price, functionality, customer support, frequency of upgrades and updates, manageability
of products, and reputation.
We compete with many established companies in the markets we serve. Some of these companies have substantially greater
financial, marketing, and technological resources, larger distribution capabilities, earlier access to customers, and greater
opportunity to address customers’ various information technology requirements than us. These factors may provide our
competitors with an advantage in penetrating markets with their products. We also compete with many smaller, less
established companies that may be able to focus more effectively on specific product segments or markets. We believe,
however, that the breadth and quality of our product offerings provide us with a competitive advantage in the marketplace.
We compete with many software providers across our six product areas. Some of our competitors include:
•Infrastructure Management: BMC, HP, and IBM
•Security Management: IBM, Network Associates, and Symantec
•Storage Management: EMC, IBM, and VERITAS
•Application Life Cycle Management: Embarcadero, IBM, Serena, and Sybase
•Data Management and Application Development: Compuware, IBM, and Oracle
•Portal and Business Intelligence: Business Objects, Cognos, IBM, and Oracle
Risks
Current and potential stockholders should consider carefully the risk factors described in Item 7, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations.” Any of these factors, or others, many of which
are beyond our control, could negatively affect our future business, financial condition, operating results, and cash flow.
Customers
No individual customer accounted for a material portion of our revenue during any of the past three fiscal years, or a material
portion of deferred subscription revenue reported in the balance sheet at the end of any period in the past three fiscal
years. The majority of our software products are used with relatively expensive computer hardware. As a result, most
of our revenue is generated from customers who have the ability to make substantial commitments to software and
hardware implementations. Our software products are used in a broad range of industries, businesses, and applications.
Our customers include manufacturers, technology companies, retailers, banks, insurance companies, other financial
services providers, educational institutions, health care institutions, and governmental agencies.
Employees
The table below sets forth the approximate number of employees by location and department as of March 31, 2004:
Employees as Employees as
of March 31, of March 31,
Location 2004 Department 2004
Corporate headquarters .......... 2,500 Product development.................................................................... 5,100
Other U.S. offices .................. 5,800 Sales and support (including pre-sales and post-sales) ................ 4,900
International offices ................ 7,000 Professional services .................................................................... 1,400
Total ........................................ 15,300 Information technology support, finance, and administration ...... 3,900
Total .............................................................................................. 15,300
As of March 31, 2004 and 2003, we had approximately 15,300 and 16,000 employees, respectively. In connection with
the restructuring of the U.S. channel sales organization and the combination of the pre- and post-sales technical
organizations in April 2003, approximately 450 positions worldwide were eliminated in the first quarter of fiscal year 2004.
CA 2004 FORM 10-K | PAGE 7