Adobe 2006 Annual Report Download - page 32

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32
Cadence Design Systems, a provider of electronics design technologies. While at Cadence, from January 1998 to
June 2000, Mr. Thompson served as Senior Vice President, Worldwide Sales and Field Operations and from April
1994 to January 1998 as Vice President, Worldwide Professional Services.
Mr. Rowley joined Adobe in November 2006 as Vice President, Corporate Controller and Principal
Accounting Officer. Prior to joining Adobe, Mr. Rowley served as Vice President, Corporate Controller,
Treasurer and Principal Accounting Officer at Synopsys, Inc., a semiconductor design software company, from
December 2002 to September 2005, and from 1999 to December 2002, Mr. Rowley served as Vice President,
Corporate Controller and Principal Accounting Officer. From 1994 to 1999, Mr. Rowley served in several
finance-related positions at Synopsys. Mr. Rowley is a certified public accountant.
ITEM 1A. RISK FACTORS
As previously discussed, our actual results could differ materially from our forward looking statements.
Factors that might cause or contribute to such differences include, but are not limited to, those discussed below.
These and many other factors described in this report could adversely affect our operations, performance and
financial condition.
Delays in development or shipment of new products or major new versions of existing products could cause a
decline in our revenue.
Any delays or failures in developing and marketing our products, including upgrades of current products and
the integration of Macromedia products into our product line, may have a harmful impact on our results of
operations. We may have particular difficulty and delays developing products that integrate Adobe and
Macromedia products, since our products are highly complex, have been designed independently and were
designed without regard to such integration. Our inability to extend our core technologies into new applications
and new platforms and to anticipate or respond to technological changes could affect continued market acceptance
of our products and our ability to develop new products. Delays in product or upgrade introductions could cause a
decline in our revenue, earnings or stock price. We cannot determine the ultimate effect these delays or the
introduction of new products or upgrades will have on our revenue or results of operations.
Introduction of new products by existing and new competitors could harm our competitive position and results of
operations.
The end markets for our software products are intensely and increasingly competitive, and are significantly
affected by product introductions and market activities of industry competitors, including Microsoft’s announced
introduction of its new Vista operating system which contains a new fixed document format, XPS, which will
compete with Adobe PDF, and its introduction of Office 12 which offers a feature to save Microsoft Office
documents as PDF files through a freely distributed plug-in, which competes with Adobe PDF creation. If these
competing products achieve widespread acceptance, our operating results could suffer. In addition, consolidation
has occurred among some of the competitors in our markets. Any further consolidations among our competitors
may result in stronger competitors and may therefore harm our results of operations. For additional information
regarding our competition and the risks arising out of the competitive environment in which we operate, see the
section entitled “Competition” contained in Item 1 of this Annual Report.
If we fail to successfully manage transitions to new business models and markets, our results of operations could
be negatively impacted.
We are devoting significant resources to the development of technologies and service offerings where we have a
limited operating history, including the enterprise and government markets and the mobile and device markets. In
the enterprise and government markets, we intend to increase our focus on vertical markets such as education,
financial services, manufacturing, and the architecture, engineering and construction markets. With our Adobe
Acrobat Connect product line, we intend to increase awareness in targeted horizontal markets such as training and
marketing and vertical markets such as manufacturing, financial services and telecommunications. These new
offerings and markets require a considerable investment of technical, financial and sales resources, and a
scaleable organization. Many of our competitors may have advantages over us due to their larger presence, larger