Computer Associates 2010 Annual Report Download - page 20

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Item 1A. Risk factors.
Current and potential stockholders should consider carefully the risk factors described below. Any of these factors, many of
which are beyond our control, could materially adversely affect our business, financial condition, operating results, cash flow
and stock price.
Failure to achieve success in our growth strategy could materially adversely affect our business, financial
condition, operating results and cash flow.
Our current strategy emphasizes accelerating our growth. This strategy is designed to build on our portfolio of software and
services to meet next-generation market opportunities. This strategy is focused on seven key areas: service management and
assurance; mainframe; project and portfolio management; security; virtualization and automation; cloud computing; and
Software-as-a-Service (SaaS). The success of this growth strategy could be affected by many of the risk factors discussed in
this Form 10-K and also by our ability to:
•Increase sales in new and emerging enterprises and markets where we currently may not have a strong presence and
where we may have a dependence on unfamiliar distribution partners and routes;
•Enable our sales force to sell new products and SaaS offerings, including instances where the SaaS offerings are of a type
not previously provided by us; and
•Improve the CA brand in the marketplace, including as it relates to our ability to sell new products and penetrate new or
emerging markets.
Failure to achieve success with this strategy could materially adversely affect our business, financial condition, operating
results and cash flow.
Given the global nature of our business, economic factors or political events beyond our control and other
business risks associated with non-U.S. operations can affect our business in unpredictable ways.
International revenue has historically represented a significant percentage of our total worldwide revenue. Success in selling
and developing our products outside the United States will depend on a variety of factors in various non-U.S. locations,
including:
•Foreign exchange currency rates;
•Local economic conditions;
•Political stability and acts of terrorism;
•Workforce reorganizations in various locations, including global reorganizations of sales, research and development,
technical services, finance, human resources and facilities functions;
•Effectively staffing key managerial and technical positions;
•Successfully localizing software products for a significant number of international markets;
•More restrictive employment regulation;
•Trade restrictions such as tariffs, duties, taxes or other controls;
•International intellectual property laws, which may be more restrictive or may offer lower levels of protection than
U.S. law;
•Complying with differing and changing local laws and regulations in multiple international locations as well as complying
with U.S. laws and regulations where applicable in these international locations; and
•Developing and executing an effective go-to-market strategy in various locations.
Any of the foregoing factors could materially adversely affect our business, financial condition, operating results and cash
flow.
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