Computer Associates 2008 Annual Report Download - page 20

•Timing and impact of “threat” outbreaks (e.g., computer software worms and viruses);
•The results of litigation;
•Ability to retain and attract qualified personnel; and
•The markets for some or all of our products may not grow as we expect.
Any of the foregoing factors, among others, may cause our operating expenses to be disproportionately high, or cause
our revenue and operating results to fluctuate. As a consequence, our business, financial condition, operating results and
cash flow could be materially adversely affected. For a discussion of certain factors that could affect our cash flow in the
future, for example, please see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Liquidity and Capital Resources — Sources and Uses of Cash.”
The timing of orders from customers and channel partners may cause fluctuations in some of our key financial metrics
which may affect our quarterly financial results and stock price.
Historically, a substantial portion of our license agreements are executed in the last month of a quarter. Any failure or
delay in executing new or renewed license agreements in a given quarter could cause fluctuations in some of our key
financial metrics (e.g., new deferred subscription value or cash flow), which could have a material adverse effect on our
quarterly financial results. Our historically uneven sales pattern also makes it difficult to predict future new deferred
subscription value and cash flow for each period and, accordingly, increases the risk of unanticipated variations in our
quarterly results and financial condition. If we do not achieve our forecasted results for a particular period, our stock
price could decline significantly.
Given the global nature of our business, economic factors or political events beyond our control and other business risks
associated with foreign operations can affect our business in unpredictable ways.
International revenue has historically represented a significant percentage of our total worldwide revenue. Continued
success in selling and developing our products outside the United States will depend on a variety of factors, including:
•Workforce reorganizations in various locations around the world, including reorganizations of sales, technical services,
finance, human resources and facilities functions;
•Fluctuations in foreign exchange currency rates;
•Staffing key managerial positions;
•The ability to successfully localize software products for a significant number of international markets;
•More restrictive employment regulation;
•General economic conditions;
•Political instability;
•Trade restrictions such as tariffs, duties, taxes or other controls;
•International intellectual property laws, which may be more restrictive or may offer lower levels of protection; and
•Compliance with differing and changing local laws and regulations in multiple international locations as well as
compliance with United States law and regulations where applicable in these international locations.
Any of the foregoing factors, among others, could materially adversely affect our business, financial condition, operating
results and cash flow.
Changes to the compensation of our sales organization could materially adversely affect our business, financial
condition, operating results and cash flow.
We may change 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 (Incentive Compensation
Plan), management retains broad discretion to change various aspects of the Incentive Compensation Plan such as sales
quotas or territory assignments, to ensure that the plan is aligned with CA’s overall business objectives. However, the
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