Autodesk 2013 Annual Report Download - page 87

investments without a corresponding increase in demand for our products. This would further reduce our operating margins and
have a negative impact on our financial results.
Existing and increased competition and rapidly evolving technological changes may reduce our 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 industry is presently undergoing a
platform shift from the personal computer to cloud and mobile computing. This shift lowers barriers to entry and poses a
disruptive challenge to established software companies. 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 addition, some of our competitors in certain markets have greater financial, technical, sales and
marketing and other resources. Furthermore, a reduction in the number and availability of compatible third-party applications,
or our inability to rapidly adapt to technological and customer preference changes, including those related to cloud computing,
mobile devices, and new computing platforms, may adversely affect the sale of our products. Because of these and other
factors, competitive conditions in the industry are likely to intensify in the future. Increased competition could result in price
reductions, reduced net revenue and profit margins and loss of market share, any of which would likely harm our business.
We believe that our future results largely depend upon our ability to offer products that compete favorably with respect to
reliability, performance, ease of use, range of useful features, continuing product enhancements, reputation and price.
Our financial results fluctuate within each quarter and from quarter to quarter making our future revenue and financial results
difficult to predict.
Our quarterly financial results have fluctuated in the past and will continue to do so in the future. These fluctuations
could cause our stock price to change significantly or experience declines. In addition to the other factors described in this Part
I, Item 1A, some of the factors that could cause our financial results to fluctuate include:
• general market, economic, business and political conditions in particular geographies, including Europe and emerging
economies,
• the ability of governments around the world to adopt fiscal policies, meet their financial and debt obligations, and to
finance infrastructure projects,
• lower growth or contraction of our upgrade or maintenance programs,
• failure to achieve and maintain planned cost reductions and productivity increases,
• the effectiveness of our internal business reorganization,
• restructuring or other accounting charges and unexpected costs or other operating expenses,
• fluctuations in foreign currency exchange rates and the effectiveness of our hedging activity,
• failure to expand our AutoCAD and AutoCAD LT products customer base to related design products,
• our inability to rapidly adapt to technological and customer preference changes, including those related to cloud
computing, mobile devices, and new computing platforms,
• the timing of the introduction of new products by us or our competitors,
• the success of new business or sales initiatives and increasing our portfolio of product suites,
• failure to maintain our revenue growth and profitability,
• the financial and business condition of our reseller and distribution channels,
• weak or negative growth in the industries we serve, including architecture, engineering and construction,
manufacturing and digital media and entertainment markets,
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2013 Annual Report