835729--5/30/2007--BMC_SOFTWARE_INC

related topics
{product, market, service}
{system, service, information}
{tax, income, asset}
{cost, operation, labor}
{condition, economic, financial}
{personnel, key, retain}
{property, intellectual, protect}
{product, candidate, development}
{control, financial, internal}
{regulation, change, law}
{interest, director, officer}
{acquisition, growth, future}
We may have difficulty achieving our cash flow from operations goals. Our restructuring efforts may strain our management, administrative, technical, operational and financial infrastructure. The software industry includes large, powerful multi-line and small, agile single-line competitors. Industry consolidation could affect prices or demand for our products. Our products must remain compatible with ever-changing operating and database environments. Future product development is dependent upon access to third-party source code. Future product development is dependent upon early access to third-party operating and database systems. Future product development is dependent upon access to and reliability of third-party software products. Future product development is dependent on adequate research and development resources. Growing market acceptance of open source software could cause a decline in our revenue and operating margins. Discovery of errors in our software could adversely affect our earnings. Failure to maintain our existing distribution channels and develop additional channels in the future could adversely affect our revenue. Our customers may not accept our product or sales strategies. Changes to compensation of our sales organization may have unintended effects. Risks related to business combinations. Unanticipated changes in our effective tax rates or exposure to additional income tax liabilities could affect our profitability. Enforcement of our intellectual property rights. Risks related to global operations. If the carrying value of our long-lived assets were not recoverable, recognition of an impairment loss would be required, which would adversely affect our financial results. Expensing of share-based compensation has reduced our reported earnings and could adversely affect our ability to attract and retain key personnel. We plan to modify or upgrade our enterprise resource planning and other key software applications, which could cause unexpected problems to occur and could cause disruption to the management of our business. We have identified a material weakness in accounting for income taxes in our internal control over financial reporting, which, if not remedied effectively, could have an adverse effect on our business.

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