Autodesk 2011 Annual Report Download - page 83

• changes in estimates of future results or recommendations by securities analysts;
• the announcement of new products or product enhancements by us or our competitors;
• quarterly variations in our or our competitors’ results of operations;
• developments in our industry;
• unusual events such as significant acquisitions, divestitures, regulatory actions and litigation;
• changes in laws, rules or regulations applicable to our business;
• general socio-economic, political or market conditions; and
• other factors, including factors unrelated to our operating performance, such as instability affecting the
economy or the operating performance of our competitors.
Significant changes in the price of our common stock could expose us to additional costly and time-
consuming litigation. Historically, after periods of volatility in the market price of a company’s securities, a
company becomes more susceptible to securities class action litigation. This type of litigation is often expensive
and diverts management’s attention and resources.
We are dependent on international revenue and operations, exposing us to significant regulatory, global
economic, intellectual property, collections, currency exchange rate, taxation, political instability 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. Our revenue is also impacted by the relative geographical and country mix of our revenue over time. These
factors have recently adversely impacted and may in the future adversely impact our international revenue, and
consequently our business as a whole. Further, our dependency on international revenue makes us much more
exposed to global economic and political trends, which can negatively impact our financial results, even if our
results in the U.S. are strong for a particular period.
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 and practices, delays resulting from difficulty in obtaining export
licenses for certain technology, tariffs, quotas and other trade barriers and restrictions, transportation delays,
operating in locations with a higher incidence of corruption and fraudulent business practices, particularly in
emerging economies, increasing enforcement by the U.S. under the Foreign Currupt Practices Act, adoption of
stricter anti-corruption laws in certain countries, including the United Kingdom, 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, including our ability to meet and review the
terms of those tax arrangements, and laws regarding the management of data, possible future limitations upon
foreign owned businesses, increased financial accounting and reporting burdens and complexities, inadequate
local infrastructure, greater difficulty in protecting intellectual property, and other factors beyond our control,
including popular uprisings, terrorism, war, natural disasters and diseases.
Existing and increased competition and rapidly evolving technological changes may reduce our net revenue
and profits.
The software industry has limited barriers to entry, and the availability of computing devices with
continually expanding performance at progressively lower prices contributes to the ease of market entry. The
markets in which we compete are characterized by vigorous competition, both by entry of competitors with
innovative technologies and by consolidation of companies with complementary products and technologies. In
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