WebEx 2002 Annual Report Download - page 32

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Foreign Currency Risk. A small, but growing, part of our business is conducted outside the United States.
These services are generally priced in the local currency. As a result, our financial results could be affected by
factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets.
When the amount of revenue obtained from sources outside the United States becomes significant, we may
engage in hedging activities or other actions to decrease fluctuations in operating results due to changes in
foreign currency exchange rates.
Interest Rate Risk. We do not use derivative financial instruments or market risk sensitive instruments.
Instead, we invest in highly liquid investments with short maturities. Accordingly, we do not expect any material
loss from these investments and believe that our potential interest rate exposure is not material.
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