Avid 2000 Annual Report Download - page 33

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26
Strikes by Actors or Writers could harm our revenues.
As reported in the press, the guilds and unions that represent actors and writers in the film and television industries
periodically threaten to strike. If such a strike were to occur, it could slow down or even stop production at major film and
television studios. If such a strike were to last for a significant amount of time, the demand for our products could be
reduced and our revenues could decline.
Our stock price may continue to be volatile.
The market price of our common stock has been volatile in the recent past and could fluctuate substantially in the
future based upon a number of factors, some of which are beyond our control. These factors include:
• changes in our quarterly operating results;
• shortfalls in revenues or earnings compared to securities analysts expectations;
• changes in analysts recommendations or projections;
• fluctuations in investors perceptions of us or our competitors;
• shifts in the markets for our products;
• development and marketing of products by our competitors; and
• changes in our relationships with suppliers, distributors, resellers, system integrators, or customers.
Further, the stock market has witnessed unusual volatility with respect to the price of equity securities of high
technology companies generally, and this volatility has, at times, appeared to be unrelated to any of the factors above.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Market Risk
Our primary exposures to market risk are the effect of volatility in currencies on asset and liability positions of our
international subsidiaries that are denominated in foreign currencies and the effect of fluctuations in interest rates earned on
our cash equivalents and marketable securities.