758004--12/13/2010--NOVELL

related topics

{customer, product, revenue}

{system, service, information}

{property, intellectual, protect}

{product, market, service}

{condition, economic, financial}

{tax, income, asset}

{financial, litigation, operation}

{operation, international, foreign}

{stock, price, operating}

{cost, operation, labor}

{competitive, industry, competition}

{personnel, key, retain}

{investment, property, distribution}

{control, financial, internal}

{acquisition, growth, future}

{interest, director, officer}

{loan, real, estate}

{regulation, government, change}

The announcement and pendency of the merger and the patent sale could adversely impact us. Our merger with Attachmate may be delayed or not occur at all for a variety of reasons, including the termination of the Merger Agreement prior to the completion of the merger, and the failure to complete the merger could adversely affect us. Litigation relating to the merger and/or the patent sale could require us to incur significant costs and suffer management distraction, as well as delay and/or enjoin the transactions. We may not be able to attract and retain new customers through indirect sales, which may result in decreased or fluctuating revenue. In addition, our reliance on an indirect sales channel for the distribution of our products could adversely affect the sales of our products. If SMOP does not grow at the rate we anticipate, or if the growth rate declines, our financial results, including cash flow, will be negatively impacted. Our inability to renew SLES subscriptions with those customers who have received SLES certificates from Microsoft, or renewals of such subscriptions at deeply discounted rates, or failure to maintain our channel partnership with Microsoft at historical levels, could adversely affect our future sales and profitability. Our OES and NetWare-related revenue stream may decline at accelerated rates which would adversely affect our business, operating results and cash flow. If we are unable to develop new and enhanced products and services that achieve widespread market acceptance, or if we are unable to continually improve the performance, features, and reliability of our existing products and services or adapt our business model to keep pace with industry trends, our business and operating results would be adversely affected. The success of our IWM strategy is contingent upon the realization and development of the IWM market. Our software may have vulnerabilities, defects and errors, which may lead to a loss of revenue or product liability claims. We have experienced, and may continue to experience, delays in the introduction of new products due to various factors, which result in lost revenue. Our inability to rely on software licensed from third parties, including open source contributions of third-party programmers and corporations, would adversely affect our business and operating results. Because of the characteristics of open source software, there are few technology barriers to entry in the open source market by new competitors and it may be relatively easy for new competitors with greater resources than we have to enter our markets and compete with us. If our customers do not renew their maintenance and subscription agreements with us, our operating results may be adversely impacted. Uncertain economic conditions and reductions in IT spending could adversely affect our business, financial condition, and operating results. We may not be able to successfully compete in a challenging market for infrastructure software services. Our inability to maintain a strong brand could impact our future success. Our inability to meet customer demand for technical support services could adversely affect our customer relationships. Our professional services clients may cancel or reduce the scope of their engagements with us on short notice. We are vulnerable to system failures, which could harm our reputation and business. The success of our acquisitions is dependent on our ability to integrate personnel, operations, and technology, and if we are not successful, our financial and operating results may be adversely affected. The consolidation of our industry may adversely affect our acquisition program. The risks associated with conducting a global business could adversely affect our results. Increasing our foreign research and development operations exposes us to risks that are beyond our control and could affect our ability to operate successfully. We may not be able to attract and retain qualified personnel because of the intense competition for qualified personnel in the software industry. Furthermore, the loss of certain key individuals could adversely affect our performance and could have a material adverse affect on our business, financial condition, and operating results. If third parties claim that we infringed their intellectual property, our ability to use some technologies and products could be limited and we may incur significant costs to resolve these claims. In the event claims for indemnification are brought for intellectual property infringement, we could incur significant expenses, thereby adversely affecting our operating results. We may not be able to protect our confidential information, and this could adversely affect our business. Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business, operating results and stock price. Our financial and operating results may fluctuate from quarter to quarter, which may cause the price of our common stock to decline. If our goodwill or intangible assets become further impaired, we may be required to record a significant charge to earnings. Because we recognize revenue from maintenance and subscriptions over the term of the agreements, downturns or upturns in sales may not be immediately reflected in our operating results. We may experience risks in our investments due to changes in the market, which could adversely affect the value or liquidity of our investments. We have real estate lease commitments for unoccupied space and restoration obligations, and if we are unable to sublet this space on acceptable terms our operating results and financial condition could be adversely affected. Our stock price may be volatile in the future, and the stock price may decline.

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758004--12/13/2010--NOVELL_INC