Computer Associates 2009 Annual Report Download - page 20

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material to our balance sheet, results of operations or cash flows. The vast majority of our subscription and maintenance
revenue in any particular reporting period comes from contracts signed in prior periods, generally pursuant to contracts
ranging in duration from three to five years.
These adverse financial events could also result in further government intervention in the U.S. and world markets. Any of
these results could impact the manner in which we are able to conduct business including within a particular industry
sector or market and could adversely affect our business, financial condition, operating results and cash flow.
Changes to the compensation of our sales organization could materially adversely affect our business, financial
condition, operating results and cash flow.
We may change our compensation plans for the sales organization from time to time in order to align the sales force
with the Company’s economic interests. Under the terms of CA’s Incentive Compensation Plan (Incentive Compensation
Plan), management retains broad discretion to change various aspects of the Incentive Compensation Plan such as sales
quotas or territory assignments, to ensure that the plan is aligned with CA’s overall business objectives. However, the
laws of many of the countries and states in which CA operates impose limitations on the amount of discretion a
company’s management may exercise on compensation matters such as commissions. The Incentive Compensation Plan
itself, or changes made by management where CA exercises discretion to change the Incentive Compensation Plan, may
lead to outcomes that are not anticipated or intended and may adversely affect our cost of doing business, employee
morale, or other performance metrics, all of which could materially adversely affect our business, financial condition,
operating results and cash flow.
Failure to expand our channel partner programs related to the sale of CA solutions may result in lost sales opportunities,
increases in expenses and weakening in our competitive position.
We sell CA solutions through systems integrators and value-added resellers in channel partner programs that require
training and expertise to sell these solutions, and global penetration to grow these aspects of our business. The failure to
expand these channel partner programs and penetrate these markets could materially adversely affect our success with
channel partners, resulting in lost sales opportunities and an increase in expenses, as well as weaken our competitive
position.
If we do not adequately manage and evolve our financial reporting and managerial systems and processes, including the
successful implementation of our enterprise resource planning software, our ability to manage and grow our business
may be harmed.
Our ability to successfully implement our business plan and comply with regulations requires effective planning and
management systems and processes. We need to continue to improve and implement existing and new operational and
financial systems, procedures and controls to manage our business effectively in the future. As a result, we have
licensed enterprise resource planning software, consolidated certain finance functions into regional locations, and are in
the process of expanding and upgrading our operational and financial systems. Any delay in the implementation of, or
disruption in the transition to, our new or enhanced systems, procedures or internal controls, could adversely affect our
ability to accurately forecast sales demand, manage our supply chain, achieve accuracy in the conversion of electronic
data and records, and report financial and management information, including the filing of our quarterly or annual
reports with the SEC, on a timely and accurate basis. Failure to properly or adequately address these issues could result
in the diversion of management’s attention and resources, adversely affect our ability to manage our business and
materially adversely affect our business, financial condition, results of operations and cash flow. Refer to Item 9A,
“Controls and Procedures,” for additional information.
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