769397--3/30/2006--AUTODESK

related topics

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, operating}

{product, candidate, development}

{product, market, service}

{operation, international, foreign}

{regulation, change, law}

{acquisition, growth, future}

{control, financial, internal}

{system, service, information}

{product, liability, claim}

{condition, economic, financial}

{loss, insurance, financial}

Because we derive a substantial portion of our net revenues from AutoCAD-based software products, if these products are not successful, our net revenues will be adversely affected. Changes in existing financial accounting standards or practices or taxation rules or practices may adversely affect our results of operations. Our international operations expose us to significant regulatory, intellectual property, collections, exchange fluctuations, taxation and other risks, which could adversely impact our future net revenues and increase our net expenses. While we believe we currently have adequate internal control over financial reporting, we are required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002 and any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price. Our business could suffer as a result of risks associated with strategic acquisitions and investments such as the acquisition of Alias. Our operating results fluctuate within each quarter and from quarter to quarter making our future revenues and operating results difficult to predict. Existing and increased competition may reduce our net revenues and profits. Net revenues or earnings shortfalls or the volatility of the market generally may cause the market price of our stock to decline. Our efforts to develop and introduce new products and service offerings expose us to risks such as limited customer acceptance, costs related to product defects and large expenditures that may not result in additional net revenues. We rely on third party technologies and if we are unable to use or integrate these technologies, our product and service development may be delayed. Disruptions with licensing relationships and third party developers could adversely impact our business. As a result of our strategy of partnering with other companies for product development our product delivery schedules could be adversely affected if we experience difficulties with our product development partners. General economic conditions may affect our net revenues and harm our business. If we do not maintain our relationships with the members of our distribution channel, or achieve anticipated levels of sell-through, our ability to generate net revenues will be adversely affected. Product returns could exceed our estimates and harm our net revenues. If we are not able to adequately protect our proprietary rights, our business could be harmed. We may face intellectual property infringement claims that could be costly to defend and result in our loss of significant rights.

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769397--3/30/2006--AUTODESK_INC