Computer Associates 2007 Annual Report Download - page 27

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•Fluctuations in foreign exchange currency rates;
•Staffing key managerial positions;
•The ability to successfully localize software products for a significant number of international markets;
•General economic conditions in foreign countries;
•Political stability; and
•Trade restrictions such as tariffs, duties or other controls affecting foreign operations.
Any of the foregoing factors, among others, could adversely affect our business, financial condition, operating results and cash
flow.
Changes to the compensation of our sales organization could adversely affect our business, financial condition, operating
results and cash flow.
We may update our compensation plans for the sales organization from time to time in order to align the sales force with the
Company’s economic interests. Under the terms of CA’s Incentive Compensation Plan (the “Incentive Compensation Plan”),
management retains broad discretion to change or modify various aspects of the plan such as sales quotas or territory
assignments to ensure that the plan is aligned with CA’s overall business objectives. However, the laws of many of the
countries and states in which CA operates impose limitations on the degree of discretion a company’s management may
exercise on compensation matters such as commissions. The Incentive Compensation Plan itself, or changes made by
management where CA exercises discretion to change the Incentive Compensation Plan, may lead to outcomes that are not
anticipated or intended and may impact our cost of doing business, employee morale, and/or other performance metrics, all of
which could adversely affect our business, financial condition, operating results and cash flow.
Changes to our sales force coverage model and organization could adversely affect our business, financial condition,
operating results, and cash flow.
During fiscal years 2006 and 2007, we made substantial changes to our sales organization and sales coverage model. See
Item 1, “Business — (c) Description of the Business — Sales and Marketing” for more information. The purpose of these
changes was to enable the Company to increase its sales of new products and solutions to new and existing customers while
protecting the Company’s installed base. In addition, these changes require our sales force to acquire new skills and
knowledge and to assume different roles. We are fully deploying these changes on a worldwide basis in fiscal year 2008, and
we may make additional changes in the future. Any of these changes may lead to outcomes that are not anticipated or
intended and may impact the performance of our sales force and thus our cost of doing business, employee morale, and/or
other performance metrics, all of which could adversely affect our business, financial condition, operating results and cash
flow.
Failure to expand our channel partner programs related to the sale of CA solutions may result in lost sales opportunities,
increases in expenses and weakening in our competitive position.
We sell CA solutions through systems integrators and value-added resellers in channel partner programs that require training
and expertise to sell these solutions, and global penetration to grow these aspects of our business.The failure to expand these
channel partner programs and penetrate these markets may adversely impact our success with channel partners, resulting in
lost sales opportunities and an increase in expenses, as well as weaken our competitive position.
If we do not adequately manage and evolve our financial reporting and managerial systems and processes, including the
successful implementation of our enterprise resource planning software from SAP AG, our ability to manage and grow
our business may be harmed.
Our ability to successfully implement our business plan and comply with regulations requires effective planning and
management systems and processes. We will need to continue to improve existing and implement new operational and
financial systems, procedures and controls to manage our business effectively in the future. As a result, we have licensed
enterprise resource planning (ERP) software from SAP AG and have begun a process to expand and upgrade our operational
and financial systems. Phase one of the implementation was completed in April 2006 and included operating activities in
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