Computer Associates 2015 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2015 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 104

  • 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

the Audit Committee, the Compensation and Human Resources Committee, the Corporate Governance Committee and the
Compliance and Risk Committee; and our Code of Conduct (which qualifies as a ‘‘code of ethics’’ under applicable SEC
regulations and is applicable to all of our employees, including our Chief Executive Officer, Chief Financial Officer and
Principal Accounting Officer, and our directors are expected to act on behalf of CA Technologies consistently with the
underlying ethical principles of the Code). These documents can also be obtained in print by writing to our Corporate
Secretary, CA, Inc., 520 Madison Avenue, New York, New York 10022.
Item 1A. Risk Factors.
Current and potential stockholders should consider carefully the risk factors described below. Any of these factors, many of
which are beyond our control, could materially adversely affect our business, financial condition, operating results, cash flow
and stock price.
Failure to achieve success in our business strategy could materially adversely affect our business, financial
condition, operating results and cash flow.
As more fully described in Part I, Item 1 ‘‘Business,’’ our business strategy is designed to build on our portfolio of software
and services to meet next-generation market opportunities. The success of this strategy could be affected by many of the
risk factors discussed in this Form 10-K and also by our ability to:
• Enable our sales force to accelerate growth of new product sales (at levels sufficient to offset any decline in revenue in
our Mainframe Solutions segment):
• in our Platinum customer accounts where we already have strong relationships;
• in our Named customer accounts where a competitor already has an established relationship; and
• in our Growth customer accounts where we currently do not have a strong presence and where we may have a
dependence on unfamiliar distribution routes and offerings of a type not previously provided by us;
• Improve CA Technologies brand, technology and innovation awareness in the marketplace;
• Ensure our offerings for cloud computing, application development and IT operations (DevOps), SaaS, and mobile
device management, as well as other new offerings, address the needs of a rapidly changing market, while not adversely
affecting the demand for our traditional products or our profitability to an extent greater than anticipated; and
• Effectively manage the strategic shift in our business model to develop more easily installed software, provide
additional SaaS offerings and refocus our professional services and education engagements on those engagements that
are connected to new product sales, without affecting our performance to an extent greater than anticipated.
Failure to achieve success with this strategy could materially adversely affect our business, financial condition, operating
results and cash flow.
Failure to innovate or adapt to technological changes and introduce new software products and services in a
timely manner could materially adversely affect our business.
If we fail to keep pace with, or in certain cases lead, technological change in our industry, that failure could materially
adversely affect our business. We operate in a highly competitive industry characterized by rapid technological change,
evolving industry standards, and changes in customer requirements and delivery methods. During the past several years,
many new technological advancements and competing products entered the marketplace. The enterprise solutions markets
in which we operate (including non-mainframe platforms from physical to virtual and cloud) are far more crowded and
competitive than our traditional mainframe systems management markets.
Our ability to compete effectively and our growth prospects for all of our products, including those associated with our
business strategy, depend upon many factors, including the success of our existing enterprise solutions, the timely
introduction and success of future software products and services, including those that we acquire or develop, and related
delivery methods, and the ability of our products to perform well with existing and future leading databases and other
platforms supported by our products that address customer needs and are accepted by the market. We have experienced
long development cycles and product delays in the past, particularly with some of our enterprise solutions, and may
experience delays in the future. In addition, we have incurred, and expect to continue to incur, significant research and
development costs as we introduce new products and integrate products into solution sets. If there are delays in new
product introduction or solution set integration, or if there is less-than-anticipated market acceptance of these new products
12