Autodesk 2014 Annual Report Download - page 89

2013 Annual Report
2014 Form 10-K 15
elsewhere in this Form 10-K and in the documents incorporated herein by reference. They could affect our actual results of
operations, causing them to differ materially from those expressed in “forward-looking” statements.
Global economic conditions may further impact our business, financial results and financial condition.
As our business has expanded globally, we have increasingly become subject to risks arising from adverse changes in
global economic and political conditions. The past several years have been characterized by weak global economic conditions,
a tightening in the credit markets, relatively high unemployment, a low level of liquidity in many financial markets, increased
government deficit spending and debt levels, uncertainty about certain governments' abilities to repay such debt or to address
certain fiscal issues (such as “austerity” measures in Southern Europe), and volatility in many financial instrument markets.
While some recent indicators point to a slow economic recovery, on the whole indicators continue to suggest a mixed trend in
economic activity among the different geographical regions and markets.
Over the past several years, many of our customers have experienced tighter credit, negative financial news and weaker
financial performance of their businesses and have reduced their workforces, thereby reducing the number of licenses and the
number of maintenance contracts they purchase from us. In addition, a number of our customers rely, directly and indirectly, on
government spending. Current debt balances of many countries without proportionate increases in revenues have caused many
countries to reduce spending and in some cases have forced those countries to restructure their debt in an effort to avoid
defaulting under those obligations. This has not only impacted those countries but others that are holders of such debt and those
assisting in such restructuring.
These actions may impact, and over the past several years have negatively impacted, our business, financial results and
financial condition. In addition, these factors are causing, and over the past several years have caused, us to restructure our
business and in turn we have and will incur restructuring charges. Moreover, our financial performance may be negatively
impacted by:
 lack of credit available to and the insolvency of key channel partners, which may impair our distribution channels and
cash flows;
 counterparty failures negatively impacting our treasury functions, including timely access to our cash reserves and
third-party fulfillment of hedging transactions;
 counterparty failures negatively affecting our insured risks;
 inability of banks to honor our existing line of credit, which could increase our borrowing expenses or eliminate our
ability to obtain short-term financing; and
 decreased borrowing and spending by our end users on small and large projects in the industries we serve, thereby
reducing demand for our products.
Even if economic conditions in the U.S. and foreign markets improve generally, a slower economic recovery in industries
important to our business, such as the manufacturing and digital media and entertainment industries, may adversely affect our
business, financial results and financial condition. If a macro-economic recovery does not occur as rapidly as anticipated, our
ability to meet our long-term financial targets may also be adversely affected.
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 further 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.