HP 2012 Annual Report Download - page 31

variability in our financial results, as the rate at which we are able to realize the benefits from those
efforts may vary from period to period.
HP’s stock price has historically fluctuated and may continue to fluctuate, which may make future prices of
HP’s stock difficult to predict.
HP’s stock price, like that of other technology companies, can be volatile. Some of the factors that
could affect our stock price are:
• speculation in the media or investment community about, or actual changes in, our business,
strategic position, market share, organizational structure, operations, financial condition,
financial reporting and results, effectiveness of cost-cutting efforts, value or liquidity of our
investments, exposure to market volatility, prospects, business combination or investment
transactions, stock price performance or executive team;
• the announcement of new, planned or contemplated products, services, technological
innovations, acquisitions, divestitures or other significant transactions by HP or its competitors;
• quarterly increases or decreases in revenue, gross margin, earnings or cash flow from operations,
changes in estimates by the investment community or guidance provided by HP and variations
between actual and estimated financial results;
• announcements of actual and anticipated financial results by HP’s competitors and other
companies in the IT industry;
• investor sentiment with respect to our company, competitors, business partners or industry in
general;
• media coverage of our business and financial performance;
• any developments relating to pending investigations, claims and disputes; and
• the timing and amount of share repurchases by HP.
General or industry specific market conditions or stock market performance or domestic or
international macroeconomic and geopolitical factors unrelated to HP’s performance also may affect
the price of HP stock. For these reasons, investors should not rely on recent or historical trends to
predict future stock prices, financial condition, results of operations or cash flows. In addition, as
discussed in Note 18 to the Consolidated Financial Statements, we are involved in several securities
class action litigation matters. Additional volatility in the price of our securities could result in the filing
of additional securities class action litigation matters, which could result in substantial costs and the
diversion of management time and resources.
Our revenue, cost of sales, and expenses may suffer if we cannot continue to license or enforce the intellectual
property rights on which our businesses depend or if third parties assert that we violate their intellectual
property rights.
We rely upon patent, copyright, trademark and trade secret laws in the United States, similar laws
in other countries, and agreements with our employees, customers, suppliers and other parties, to
establish and maintain intellectual property rights in the products and services we sell, provide or
otherwise use in our operations. However, any of our intellectual property rights could be challenged,
invalidated, infringed or circumvented, or such intellectual property rights may not be sufficient to
permit us to take advantage of current market trends or to otherwise provide competitive advantages,
either of which could result in costly product redesign efforts, discontinuance of certain product
offerings or other harm to our competitive position. Further, the laws of certain countries do not
protect proprietary rights to the same extent as the laws of the United States. Therefore, in certain
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