Autodesk 2007 Annual Report Download - page 77

17
2007 Annual Report
Date of closing Company Details
May 2004 Unreal Pictures The acquisition of Unreal Pictures gave Autodesk
complete access to a comprehensive character
design software solution and a proven software
development team. Autodesk integrated the
Unreal Pictures technology (known as Character
Studio) into our 3ds Max product in October
2004. The acquisition has been integrated into
the Media and Entertainment Segment. The
goodwill acquired was assigned to the Media and
Entertainment Segment.
April 2004 MechSoft.com, Inc.
(“MechSoft”)
The assets acquired from MechSoft complemented
Autodesk’s solutions with tools that enable users
to embed engineering calculations into their
designs based on how parts function. Autodesk
integrated key components of MechSoft’s
technology into Autodesk Inventor Family of
Products. The goodwill acquired was assigned
to the Manufacturing Solutions Division of the
Design Solutions Segment.
For additional information on certain of the acquired businesses described above, see Note 15,
“Business Combinations” in the Notes to Consolidated Financial Statements.
ITEM 1A. RISK FACTORS
We operate in a rapidly changing environment that involves a number of risks, many of which are
beyond our control. The following discussion highlights some of these risks and the possible impact of
these factors on future results of operations. If any of the following risks actually occur, our business,
financial condition or results of operations may be adversely impacted, causing the trading price of our
common stock to decline.
As a result of our voluntary review of stock option practices and related restatements, the SEC has initiated an
informal investigation. This investigation may not be resolved favorably and has required and may continue to
require a significant amount of management time and attention and accounting and legal resources, which
could adversely affect our business, results of operations, and cash flows.
We are currently being investigated by the SEC in connection with our historical stock option
practices and related accounting. The period of time necessary to resolve the informal SEC investigation
is uncertain, and this matter could require significant management and financial resources which could
otherwise be devoted to the operation of our business. In addition, considerable legal, tax and accounting
expenses related to this matter have been incurred to date and significant expenditures may continue
to be incurred in the future. We cannot predict the outcome of the SEC investigation. If we or any of our
current or former officers or directors is subject to an adverse finding resulting from the SEC investigation,
we could be required to pay damages or penalties or have other remedies imposed upon us which could
adversely affect our business, results of operations, financial position, cash flows and the trading price
of our securities. In addition, if the informal investigation continues for a prolonged period of time, this
could have the same effects, regardless of the outcome of the investigation.