2135--8/27/2009--AFFILIATED_COMPUTER_SERVICES

related topics

{cost, contract, operation}

{system, service, information}

{regulation, government, change}

{operation, international, foreign}

{financial, litigation, operation}

{acquisition, growth, future}

{debt, indebtedness, cash}

{competitive, industry, competition}

{personnel, key, retain}

{capital, credit, financial}

{property, intellectual, protect}

{provision, law, control}

{condition, economic, financial}

{customer, product, revenue}

The complexity of regulatory environments in which we operate has increased and may continue to increase our costs. We are subject to the oversight of the SEC and other regulatory agencies. Investigations by those agencies could divert management s focus and could have a material adverse impact on our reputation and financial condition. Our credit rating or further reductions of our credit rating may have an adverse impact on our business. A decline in revenues from or a loss or failure of significant clients could reduce our profitability and cash flow. Our ability to recover capital investments in connection with our contracts is subject to risk. We have non-recurring revenue, which subjects us to a risk that our revenues and cash flows from operations may fluctuate from period to period. The markets in which we operate are highly competitive and we may not be able to compete effectively. Our business could be adversely affected if our clients are not satisfied with our services. We are dependent to a significant extent on third party providers, such as subcontractors, a relatively small number of primary software vendors, utility providers and network providers, and could be materially adversely affected if they cannot deliver or perform as expected or if our relationships with them are terminated or otherwise change. We may not be successful at identifying, acquiring or integrating other businesses or technologies. A failure to properly manage our operations and our growth could have a material adverse effect on our business. Our Government contracts are subject to termination rights, audits and investigations, which, if exercised, could negatively impact our reputation and reduce our ability to compete for new contracts. We may incur delays in signing and commencing new business as the result of protests of government contracts that we are awarded. Some of our contracts contain provisions that could adversely affect our business, financial condition, operating results and cash flows. Additionally, our inability to control costs could adversely affect our business, financial condition, operating results and cash flows. Claims associated with our actuarial consulting and benefit plan management services could negatively impact our business. We may be subject to claims of infringement of third-party intellectual property rights which could adversely affect our business. We are subject to United States and foreign jurisdiction laws relating to individually identifiable information, and failure to comply with those laws, whether or not inadvertent, could subject us to legal actions and negatively impact our operations. We are subject to breaches of our security systems. Budget deficits and/or fluctuations in the number of requests for proposals issued by governments and their agencies may adversely impact our business. Our international and domestic operations are subject to a number of risks. Our operating results may be adversely affected by fluctuations in foreign currency exchange rates. A failure to attract and retain necessary technical personnel, skilled management and qualified subcontractors may have an adverse impact on our business. Risks associated with loans that we service may reduce our profitability and cash flow. Certain provisions of our certificate of incorporation, bylaws and Delaware law and our stock ownership could deter takeover attempts.

Full 10-K form ▸

2135--8/27/2009--AFFILIATED_COMPUTER_SERVICES_INC