Autodesk 2009 Annual Report Download - page 98

We are dependent on international revenue and operations, exposing us to significant regulatory, global
economic, intellectual property, collections, currency exchange rate, taxation and other risks, which could
adversely impact our financial results.
We are dependent on our international operations for a significant portion of our revenue. Our international
revenue, including that from emerging economies, is subject to general economic and political conditions in
foreign markets, including conditions in foreign markets resulting from economic and political conditions in the
U.S. These factors have recently adversely impacted and may in the future continue to adversely impact our
future international revenue, and consequently our business as a whole. Further, our dependency on international
revenue makes us much more exposed to global economic trends, which can negatively impact our financial
results, even if our results in the U.S. are strong for a particular period.
In addition, we anticipate that our international operations will continue to account for a significant portion
of our net revenue, and as we expand our international development, sales and marketing expertise, will provide
significant support to our overall efforts in countries outside of the U.S. Risks inherent in our international
operations include fluctuating currency exchange rates, including risks related to any hedging activities we
undertake, unexpected changes in regulatory requirements, practices and tariffs, difficulties in staffing and
managing foreign sales and development operations, longer collection cycles for accounts receivable, potential
changes in tax laws, tax arrangements with foreign governments and laws regarding the management of data,
possible future limitations upon foreign owned businesses, and greater difficulty in protecting intellectual
property.
We have been named as a party in lawsuits related to our historical stock option practices and related
accounting, and we may be named in additional litigation in the future, all of which could result in an
unfavorable outcome and have a material adverse effect on our business, financial condition, results of
operations, cash flows and the trading price for our securities.
We are currently defending two lawsuits that have been filed against us and our current officers and certain
of our current and former directors and officers relating to our historical stock option practices and related
accounting. See Note 13, “Commitments and Contingencies” in the Notes to Consolidated Financial Statements
for a more detailed description of these proceedings. The ultimate outcomes of these actions could have a
material adverse effect on our business, financial condition, results of operations, cash flows and the trading price
for our securities.
We may become the subject of additional private or government actions in the future, including stockholder
or employee litigation. Litigation may be time-consuming, expensive and disruptive to normal business
operations, and the outcome of litigation is difficult to predict. The defense of lawsuits may result in significant
expenditures and the diversion of our management’s time and attention from the operation of our business, which
could impede our business. All or a portion of any amount we may be required to pay to satisfy a judgment or
settlement of any claims may not be covered by insurance.
Our business could be adversely affected if we are unable to attract and retain key personnel.
Our success depends largely on our ability to attract and retain highly skilled technical, professional,
managerial, sales and marketing personnel. Historically, competition for these personnel has been intense; for
example, over the past several quarters we have been actively recruiting a new chief financial officer. The loss of
services of any of our key personnel, the inability to retain and attract qualified personnel in the future, or delays
in hiring required personnel, particularly engineering and sales personnel, could make it difficult to meet key
objectives, such as timely and effective product introductions and financial goals.
Existing and increased competition may reduce our net revenue and profits.
The software industry has limited barriers to entry, and the availability of desktop computers with
continually expanding performance at progressively lower prices contributes to the ease of market entry. The
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