Adobe 2014 Annual Report Download - page 22

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the information we collect or breach of our security could damage our reputation, result in the loss of customers and harm our
business.
Because of the large amount of data that we collect and manage on behalf of our customers, it is possible that hardware or
software failures or errors in our systems (or those of our third-party service providers) could result in data loss or corruption or
cause the information that we collect to be incomplete or contain inaccuracies that our customers regard as significant. Furthermore,
our ability to collect and report data may be delayed or interrupted by a number of factors, including access to the internet, the
failure of our network or software systems, security breaches or significant variability in visitor traffic on customer websites. In
addition, computer viruses may harm our systems causing us to lose data, and the transmission of computer viruses could expose
us to litigation. We may also find, on occasion, that we cannot deliver data and reports to our customers in near real time because
of a number of factors, including significant spikes in customer activity on their websites or failures of our network or software.
If we supply inaccurate information or experience interruptions in our ability to capture, store and supply information in near real
time or at all, our reputation could be harmed and we could lose customers, or we could be found liable for damages or incur other
losses.
Uncertainty about current and future economic conditions and other adverse changes in general political conditions in any of
the major countries in which we do business could adversely affect our operating results.
As our business has grown, we have become increasingly subject to the risks arising from adverse changes in economic
and political conditions, both domestically and globally. Uncertainty about current and future economic and political conditions
on us, our customers, suppliers and partners, makes it difficult for us to forecast operating results and to make decisions about
future investments. If economic growth in countries where we do business slows, customers may delay or reduce technology
purchases, advertising spending or marketing spending. This could result in reductions in sales of our products and services, longer
sales cycles, slower adoption of new technologies and increased price competition. Our customers include government entities,
including the U.S. federal government, and if spending cuts impede the government’s ability to purchase our products and solutions,
our revenues could decline. Deterioration in economic conditions in any of the countries in which we do business could also cause
slower or impaired collections on accounts receivable, which may adversely impact our liquidity and financial condition.
There could be a number of effects from a financial institution credit crisis on our business, which could include impaired
credit availability and financial stability of our customers, including our distribution partners and channels. A disruption in the
financial markets may also have an effect on our derivative counterparties and could also impair our banking partners on which
we rely for operating cash management. Any of these events would likely harm our business, results of operations and financial
condition.
Political instability in or around any of the major countries in which we do business would also likely harm our business,
results of operations and financial condition.
We may not realize the anticipated benefits of past or future acquisitions, and integration of these acquisitions may disrupt our
business and management.
We may not realize the anticipated benefits of an acquisition of a company, division, product or technology, each of which
involves numerous risks. These risks include:
• difficulty in integrating the operations and personnel of the acquired company;
• difficulty in effectively integrating the acquired technologies, products or services with our current technologies,
products or services;
• difficulty in maintaining controls, procedures and policies during the transition and integration;
• entry into markets in which we have minimal prior experience and where competitors in such markets have stronger
market positions;
• disruption of our ongoing business and distraction of our management and other employees from other opportunities
and challenges;
• inability to retain personnel of the acquired business;
• inability to retain key customers, distributors, vendors and other business partners of the acquired business;
• inability to achieve the financial and strategic goals for the acquired and combined businesses;
• inability to take advantage of anticipated tax benefits as a result of unforeseen difficulties in our integration activities;