Autodesk 2011 Annual Report Download - page 82

• weak or negative growth in the industries we serve, including architecture, engineering and
construction, manufacturing and digital media and entertainment markets,
• perceived or actual technical or other problems with a product or combination of products,
• unexpected or negative outcomes of matters and expenses relating to litigation or regulatory inquiries,
• failure to achieve anticipated levels of customer acceptance of key new applications,
• restructuring or other accounting charges and unexpected costs or other operating expenses,
• pricing pressure or changes in product pricing or product mix,
• platform changes,
• timing of product releases and retirements,
• failure to continue momentum of frequent release cycles or to move a significant number of customers
from prior product versions in connection with our programs to retire major products,
• failure to accurately predict the impact of acquired businesses or to identify and realize the anticipated
benefits of acquisitions, and successfully integrate such acquired businesses and technologies,
• failure to achieve and maintain planned cost reductions and productivity increases,
• changes in tax laws or regulations or accounting rules, such as increased use of fair value measures and
the potential requirement that U.S. registrants prepare financial statements in accordance with
International Financial Reporting Standards (“IFRS”),
• changes in sales compensation practices,
• dependence and the timing of large transactions,
• failure to effectively implement our copyright legalization programs, especially in developing countries,
• our inability to rapidly adapt to technological and customer preference changes, including those related
to cloud computing, mobile devices, and new computing platforms,
• failure to achieve sufficient sell-through in our channels for new or existing products,
• renegotiation or termination of royalty or intellectual property arrangements,
• interruptions or terminations in the business of our consultants or third party developers,
• the timing and degree of expected investments in growth and efficiency opportunities, and
• failure to achieve continued success in technology advancements.
We have also experienced fluctuations in financial results in interim periods in certain geographic regions
due to seasonality or regional economic conditions. In particular, our financial results in Europe during our third
quarter are usually affected by a slow summer period, and our Asia Pacific operations typically experience
seasonal slowing in our third and fourth quarters.
Our operating expenses are based in part on our expectations for future revenue and are relatively fixed in the
short term. Accordingly, any revenue shortfall below expectations could have an immediate and significant adverse
effect on our profitability. Greater than anticipated expenses or a failure to maintain rigorous cost controls would also
negatively affect profitability. Further, gross margins may be adversely affected if our sales of Creative Finishing
products, which historically have had lower margins, grow at a faster rate than sales of our higher-margin products.
Net revenue or earnings shortfalls or the volatility of the market generally may cause the market price of our
stock to decline.
The market price for our common stock has experienced significant fluctuations and may continue to fluctuate
significantly. The market price for our common stock may be affected by a number of factors, including:
• shortfalls in our expected financial results, including net revenue, earnings or key performance metrics;
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