857005--11/29/2007--PARAMETRIC_TECHNOLOGY

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{system, service, information}

{operation, international, foreign}

{cost, operation, labor}

{stock, price, operating}

{personnel, key, retain}

{acquisition, growth, future}

{control, financial, internal}

{stock, price, share}

{debt, indebtedness, cash}

{financial, litigation, operation}

Our operating results fluctuate from quarter to quarter, making our revenue and operating results difficult to predict. We may be adversely affected by a decline in demand for PLM solutions. We depend on sales within the manufacturing market. Because a substantial portion of our sales are to existing customers and sales to new customers often rely on customer references, our business could be adversely affected if those customers were to become dissatisfied with our products and/or services. Our cost structure is relatively fixed in the short term, which makes it difficult to reduce our expenses quickly in response to declines in revenue or revenue growth. We are relocating some of our business functions to new locations, which could adversely affect our operations. We use third parties, in addition to our direct sales force, for the distribution and implementation of our software solutions, which makes it more difficult to manage customer relationships. Our financial condition could be adversely affected if significant errors or defects are found in our software. We may be unable to successfully acquire and integrate additional strategic businesses and any additional businesses we acquire may not achieve the revenue and earnings we anticipated. We are dependent on key personnel whose loss could impair our product development or our sales efforts. We must continually modify and enhance our products to keep pace with changing technology and address our customers needs, and any failure to do so could reduce demand for our products. We depend on sales from outside the United States that could be adversely affected by changes in international markets. At times we provide extended payment terms to our customers, which may be a factor in our customers purchasing decisions and could adversely affect our revenues if we ceased making these terms available. We may be unable to adequately protect our proprietary rights. Intellectual property infringement claims could be asserted against us, which could be expensive to defend and could result in limitations on our use of the claimed intellectual property. Competition is increasing, which may reduce our profits and limit or reduce our market share. Increasing competition in the computer-aided design marketplace may reduce our revenues. Growth in the computer-aided design solutions industry has slowed. Our assumptions about the Product Lifecycle Management (PLM) market opportunity may be wrong. If we are unable to successfully differentiate our products from those of our competitors, we may be unable to preserve or increase our market share. Our solutions must meet customer expectations to be successful. We are currently defending a lawsuit seeking substantial damages in which we could be liable. We have identified a material weakness in our internal control over financial reporting that, until remediated, could result in a material misstatement in our financial statements. We have a revolving credit facility and have borrowed funds under that facility. Our stock price has been volatile, which may make it harder to resell your shares at a time and at a price that is favorable to you.

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857005--11/29/2007--PARAMETRIC_TECHNOLOGY_CORP