Computer Associates 2006 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 of the 2006 Computer Associates annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

As of March 31, 2006 and 2005, we had approximately 16,000 and 15,300 employees, respectively. The increase
was due to approximately 900 employees added from acquisitions and approximately 600 employees added
primarily to our product development groups in North America and India. This increase in personnel was offset by
the impact of the restructuring plan announced in the second quarter of fiscal year 2006, which included a workforce
reduction of approximately 800 positions worldwide. We believe our employee relations are satisfactory.
(d) Financial Information About Geographic Areas
Refer to Note 4, “Segment and Geographic Information”, in the Notes to the Consolidated Financial Statements for
financial data pertaining to our segment and geographic operations.
(e) Available Information
Our website address is ca.com. All filings we make with the SEC, including our Annual Report on Form 10-K, our
Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, and any amendments, are available for free on
our website as soon as reasonably practicable after they are filed with or furnished to the SEC. Our SEC filings are
available to be read or copied at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549.
Information regarding the operation of the Public Reference Room can be obtained by calling the SEC at
1-800-SEC-0330. Our filings can also be obtained for free on the SEC’s Internet site at sec.gov. The reference to our
website address does not constitute incorporation by reference of the information contained on the website in this
Report or other filings with the SEC, and the information contained on the website is not part of this document.
Our website also contains information about our initiatives in corporate governance, including: our corporate
governance principles; information concerning our Board of Directors (including e-mail communication with
them); our Business Practices Standard of Excellence: Our Code of Conduct (applicable to all of our employees,
including our Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, and our directors);
instructions for calling the CA Compliance and Ethics Helpline; information concerning our Board Committees,
including the charters of the Audit and Compliance Committee, the Compensation and Human Resource
Committee, the Corporate Governance Committee, and the Strategy Committee; information on the Deferred
Prosecution Agreement (DPA) we entered into in September 2004 as part of our settlement to resolve government
investigations into past accounting practices including our progress under governance initiatives required under the
DPA; and transactions in CA securities by directors and executive officers. These documents can also be obtained in
print by writing to our Executive Vice President, General Counsel and Corporate Secretary, Kenneth V. Handal, at
the Company’s world headquarters in Islandia, New York, at the address listed on the cover of this Form 10-K. Refer
to the Corporate Governance section in the Investors section of our website for details.
Item 1A. Risk Factors.
Current and potential stockholders should consider carefully the risk factors described below. Any of these factors,
or others, many of which are beyond our control, could negatively affect our revenue, profitability and cash flow.
Our operating results and revenue are subject to fluctuations caused by many economic factors associated
with our industry and the markets for our products which, in turn, may individually and collectively affect our
revenue, profitability and cash flow in adverse and unpredictable ways.
Quarterly and annual results of operations are affected by a number of factors, associated with our industry and the
markets for our products, including those listed below, which in turn could adversely affect our revenue,
profitability and cash flow in the future.
Timing and impact of threat outbreaks (e.g. worms and viruses);
The rate of adoption of new product technologies and releases of new operating systems;
Demand for products and services;
Length of sales cycle;
Customer difficulty in implementation of our products;
14