Computer Associates 2015 Annual Report Download - page 18

partners provide and, as a result, materially adversely affect our business, financial condition, operating results and cash
flow.
Our business may suffer if we are not able to retain and attract qualified professionals, including key
managerial, technical, marketing and sales professionals.
We operate in a business where there is intense competition for experienced personnel in all of our global markets. We
depend on our ability to identify, recruit, hire, train, develop and retain qualified and effective professionals and to attract
and retain talent needed to execute our business strategy. Our ability to do so depends on numerous factors, including
factors that we cannot control, such as competition and conditions in the local employment markets in which we operate.
Effective succession planning is also important for our long-term success. Failure to ensure effective transfers of knowledge
and smooth transitions involving key employees could hinder our strategic planning and execution. Our future success
depends in a large part on the continued contribution of our senior management and other key employees. A loss of a
significant number of skilled managerial, technical, marketing or other professionals could have a negative effect on the
quality of our products. A loss of a significant number of experienced and effective sales professionals could result in fewer
sales of our products. Our failure to retain qualified employees in these categories could materially adversely affect our
business, financial condition, operating results and cash flow.
General economic conditions and credit constraints, or unfavorable economic conditions in a particular region,
business or industry sector, may lead our customers to delay or forgo technology investments and could have
other impacts, any of which could materially adversely affect our business, financial condition, operating
results and cash flow.
Our products are designed to improve the productivity and efficiency of our customers’ information processing resources.
However, a general slowdown in the global economy, or in a particular region (such as Europe), or disruption in a business
or industry sector (such as the financial services sector), or tightening of credit markets, could cause customers to: have
difficulty accessing credit sources; delay contractual payments; or delay or forgo decisions to (i) license new products
(particularly with respect to discretionary spending for software), (ii) upgrade their existing environments or (iii) purchase
services. Any such impacts could materially adversely affect our business, financial condition, operating results and cash
flow.
A general slowdown in the global economy may also materially affect the global banking system, including individual
institutions as well as a particular business or industry sector, which could cause further consolidations or failures in such a
sector. Approximately one third of our revenue is derived from arrangements with financial institutions (i.e., banking,
brokerage and insurance companies). The majority of these arrangements are for the renewal of mainframe solutions
capacity and maintenance associated with transactions processed by our financial institution customers. While we cannot
predict what impact there may be on our business from further consolidation of the financial industry sector, or the impact
from the economy in general on our business, to date the impact has not been material to our balance sheet, results of
operations or cash flow. The vast majority of our subscription and maintenance revenue in any particular reporting period
comes from contracts signed in prior periods, generally pursuant to contracts ranging in duration from three to five years.
Any of these events could affect the manner in which we are able to conduct business, including within a particular industry
sector or market and could materially adversely affect our business, financial condition, operating results and cash flow.
We may encounter difficulties in successfully integrating companies and products that we have acquired or
may acquire into our existing business, which could materially adversely affect our infrastructure, market
presence, business, financial condition, operating results and cash flow.
In the past we have acquired, and in the future we expect to acquire, complementary companies, products, services and
technologies (including through mergers, asset acquisitions, joint ventures, partnerships, strategic alliances and equity
investments). Additionally, we expect to acquire technology and software that are consistent with our business strategy. The
risks we may encounter include:
• We may find that the acquired company or assets do not improve our financial and strategic position as planned;
• We may have difficulty integrating the operations, facilities, personnel and commission plans of the acquired business;
• We may have difficulty forecasting or reporting results subsequent to acquisitions;
• We may have difficulty retaining the skills needed to further market, sell or provide services on the acquired products
in a manner that will be accepted by the market;
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