Citrix 2000 Annual Report Download - page 30

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− fluctuations in foreign currency exchange rates;
− compliance with foreign regulatory and market requirements;
− variability of foreign economic and political conditions;
− changing restrictions imposed by regulatory requirements, tariffs or
other trade barriers or by United States export laws;
− costs of localizing products and marketing such products in foreign
countries;
− longer accounts receivable payment cycles;
− potentially adverse tax consequences, including restrictions on
repatriation of earnings;
− difficulties in protecting intellectual property; and
− burdens of complying with a wide variety of foreign laws.
Volatility of Stock Price
The market price for the Company's Common Stock has been volatile and has
fluctuated significantly to date. The trading price of the Common Stock is
likely to continue to be highly volatile and subject to wide fluctuations in
response to factors such as actual or anticipated variations in operating and
financial results, anticipated revenue or earnings growth, analyst reports or
recommendations and other events or factors, many of which are beyond the
Company's control. In addition, the stock market in general, and The Nasdaq
National Market and the market for software companies and technology companies
in particular, have experienced extreme price and volume fluctuations. These
broad market and industry factors may materially and adversely affect the market
price of the Common Stock, regardless of the Company's actual operating
performance. In the past, following periods of volatility in the market price of
a company's securities, securities class−action litigation has often been
instituted against such companies. Such litigation could result in substantial
costs and a diversion of management's attention and resources, which would have
a material adverse effect on the Company's business, financial condition and
results of operations.
Fluctuations in Economic and Market Conditions
The demand for the Company's products depends in part upon the general
demand for computer hardware and software, which fluctuates based on numerous
factors, including capital spending levels and general economic conditions.
Fluctuations in the demand for the Company's products could have a material
adverse effect on the Company's business, financial condition and results of
operations.
The Company's short and long−term investments with various financial
institutions are subject to risks inherent with fluctuations in general economic
and market conditions. Such fluctuations could cause an adverse effect in the
value of such investments and could even result in a total loss of certain of
the Company's investments. A total loss of one or more investments could result
in a material adverse effect in the Company's financial position.
Management of Growth and Higher Operating Expenses
The Company has recently experienced rapid growth in the scope of its
operations, the number of its employees and the geographic area of its
operations. In addition, the Company has completed certain domestic and
international acquisitions. Such growth and assimilation of acquired operations
and personnel of such acquired companies has placed and may continue to place a
significant strain on the Company's managerial, operational and financial
resources. To manage its growth effectively, the Company must continue to
implement and improve additional management and financial systems and controls.
The Company believes that it has made adequate allowances for the costs and
risks associated with these expansions. However, its systems, procedures or
controls may not be adequate to support its current or future operations. In
addition, the Company may not be able to effectively manage this expansion and
still achieve the rapid execution necessary to fully exploit the market
opportunity for its products and services in a timely and cost−effective
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