701811--3/15/2006--MENTOR_GRAPHICS

related topics

{regulation, change, law}

{customer, product, revenue}

{property, intellectual, protect}

{acquisition, growth, future}

{operation, international, foreign}

{tax, income, asset}

{loss, insurance, financial}

{condition, economic, financial}

{product, market, service}

{debt, indebtedness, cash}

{operation, natural, condition}

{personnel, key, retain}

{provision, law, control}

{control, financial, internal}

{system, service, information}

{competitive, industry, competition}

{financial, litigation, operation}

Weakness in the United States and international economies may materially adversely impact us. We are subject to the cyclical nature of the integrated circuit and electronics systems industries and any future downturns may materially adversely impact us. Our forecasts of our revenues and earnings outlook may be inaccurate and could materially adversely impact our business or our planned results of operations. Fluctuations in quarterly results of operations due to customer seasonal purchasing patterns, the timing of significant orders and the mix of licenses used to sell our products could materially adversely impact our business and the market price of our common stock. Customer payment defaults could materially adversely impact us. Accounting rules governing revenue recognition may change. Forecasting our tax rates is complex and subject to uncertainty. New accounting standard related to equity compensation will cause us to recognize an additional expense, which will result in a reduction in our net income. Our business is subject to evolving corporate governance and public disclosure regulations that have increased both costs and the risk of noncompliance, which could have a material adverse impact on us. The outcome of Internal Revenue Service and other tax authorities examinations could have a material adverse affect on us. There are limitations on the effectiveness of controls. The lengthy sales cycle for our products and services and delay in customer consummation of projects, make the timing of our revenues difficult to predict. Any loss of our leadership position in certain segments of the EDA market could have a material adverse affect on us. We may not realize revenues as a result of our investments in research and development. Intense competition in the EDA industry could materially adversely impact us. We may acquire other companies and may not successfully integrate them. Risks of international operations and the effects of foreign currency fluctuations can materially adversely impact our business and operating results. The delay in production of components or the ordering of excess components for our emulation hardware products could materially adversely impact us. Our failure to adequately protect our proprietary rights or to obtain software or other intellectual property licenses could materially adversely impact us. Future litigation may materially adversely impact us. We may become subject to unfair hiring claims, which could prevent us from hiring needed employees, incur liability for damages or incur substantial unanticipated legal costs. Errors or defects in our products and services could expose us to liability and harm our reputation. Our failure to attract and retain key employees may harm us. Terrorist attacks and other acts of violence or war may materially adversely impact the markets on which our securities trade, the markets in which we operate, our operations and our profitability. Our articles of incorporation, Oregon law and our shareholder rights plan may have anti-takeover effects. Our debt obligations expose us to risks that could materially adversely impact our business, operating results and financial condition, and could prevent us from fulfilling our obligations under such indebtedness.

Full 10-K form ▸

701811--3/15/2006--MENTOR_GRAPHICS_CORP