Citrix 2007 Annual Report Download - page 32

agreement not otherwise amended or waived, the affected lenders could accelerate the repayment of any
outstanding principal and accrued interest on their outstanding loans and terminate their commitments to lend
additional funds, which may have a material adverse effect on our liquidity and financial position.
If our security measures are breached and unauthorized access is obtained to our Online Services division
customers’ data, our services may be perceived as not being secure and customers may curtail or stop using
our service.
Use of our GoToMyPC, GoToMeeting, GoToAssist or GoToWebinar services involves the storage and
transmission of customers’ business and personally identifiable information, and security breaches could expose
us to a risk of loss of this information, litigation and possible liability. If our security measures are breached as a
result of third-party action, employee error, malfeasance or otherwise, and, as a result, someone obtains
unauthorized access to one of our online customers’ personally identifiable data, our reputation will be damaged,
our business may suffer and we could incur significant liability. Because techniques used to obtain unauthorized
access to or sabotage systems change frequently and generally are not recognized until launched against a target,
we may be unable to anticipate these techniques or to implement adequate preventative measures. If any
compromises of security were to occur, it could have the effect of substantially reducing the use of the Web for
commerce and communications. Anyone who circumvents our security measures could misappropriate credit
card and other payment information, personally identifiable customer information or cause interruptions in our
services or operations. Computer viruses, software programs that disable or impair computers, have been and
continue to be distributed and have rapidly spread over the Internet. Computer viruses could be introduced into
our systems or those of our vendors, which could disrupt our network or make it inaccessible to our Online
Services division customers. If an actual or perceived breach of our security occurs, the market perception of the
effectiveness of our security measures could be harmed and we could lose sales and customers for our Online
Services division, and in the case of an actual breach we could incur fines and other penalties, which would
significantly adversely affect our financial condition and the operating results for our Online Services division.
Evolving regulation of the Web may adversely affect our Online Services division.
As Web commerce continues to evolve, increasing regulation by federal, state or foreign agencies becomes
more likely. For example, we believe increased regulation is likely in the area of laws and regulations applying to
the solicitation, collection, processing or use of personal or consumer information. Additional regulation could
impact our business through increased costs and restrictions on our ability to process and secure customer data.
In addition, taxation of services provided over the Web or other charges imposed by government agencies or by
private organizations for accessing the Web may also be imposed. Any regulation imposing greater fees for Web
use or restricting information exchange over the Web could result in a decline in the use of the Web and the
viability of Web-based services, which would significantly adversely affect our financial condition and the
operating results for our Online Services division.
Natural disasters or other unanticipated catastrophes that result in a disruption of our operations could
negatively impact our results of operations.
Our worldwide operations are dependent on our network infrastructure, internal technology systems and
Website. Significant portions of our computer equipment, intellectual property resources and personnel,
including critical resources dedicated to research and development and administrative support functions are
presently located at our corporate headquarters in Fort Lauderdale, Florida, an area of the country that is
particularly prone to hurricanes, and at our various locations in California, an area of the country that is
particularly prone to earthquakes. We also have operations in various domestic and international locations that
expose us to additional diverse risks. The occurrence of natural disasters, such as hurricanes or earthquakes, or
other unanticipated catastrophes, such as telecommunications failures, cyber-attacks, fires or terrorist attacks, at
any of the locations in which we do business, could cause interruptions in our operations. For example, in
October 2005, Hurricane Wilma passed through southern Florida causing extensive damage to the region,
26