859014--5/30/2008--COMPUWARE

related topics

{product, market, service}

{customer, product, revenue}

{tax, income, asset}

{property, intellectual, protect}

{condition, economic, financial}

{operation, international, foreign}

{competitive, industry, competition}

{stock, price, operating}

{acquisition, growth, future}

{personnel, key, retain}

{provision, law, control}

{stock, price, share}

CONTINUED USE OF IBM AND IBM-COMPATIBLE PRODUCTS. OUR SOFTWARE PRODUCT REVENUE IS DEPENDENT ON THE ACCEPTANCE OF OUR PRICING STRUCTURE FOR SOFTWARE LICENSES AND MAINTENANCE. OUR STRATEGY TO PACKAGE PRODUCTS AND SERVICES AS A SINGLE OFFERING MAY NOT BE ACCEPTED BY OUR CUSTOMERS, NEGATIVELY IMPACTING OUR REVENUE. WE MAY FAIL TO ACHIEVE OUR FORECASTED FINANCIAL RESULTS DUE TO INACCURATE SALES FORECASTS OR OTHER FACTORS. OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION MAY BE ADVERSELY AFFECTED. OUR SOFTWARE AND TECHNOLOGY MAY INFRINGE THE PROPRIETARY RIGHTS OF OTHERS. OUR RESULTS COULD BE ADVERSELY AFFECTED IF OUR OPERATING MARGIN OR OPERATING MARGIN PERCENTAGE DECLINE. OUR RESULTS COULD BE ADVERSELY AFFECTED BY INCREASED COMPETITION, PRICING PRESSURES AND TECHNOLOGICAL CHANGES. THE MARKET FOR PROFESSIONAL SERVICES IS HIGHLY COMPETITIVE, FRAGMENTED AND CHARACTERIZED BY LOW BARRIERS TO ENTRY. THE MARKET FOR APPLICATION SERVICES IS IN ITS EARLY STAGES WITH EMERGING COMPETITORS. AS THE MARKET MATURES, COMPETITION MAY INCREASE AND COULD HAVE A NEGATIVE IMPACT ON OUR RESULTS OF OPERATIONS. WE MUST DEVELOP OR ACQUIRE PRODUCT ENHANCEMENTS AND NEW PRODUCTS TO SUCCEED. ACQUISITIONS MAY BE DIFFICULT TO INTEGRATE, DISRUPT OUR BUSINESS OR DIVERT THE ATTENTION OF OUR MANAGEMENT AND MAY RESULT IN FINANCIAL RESULTS THAT ARE DIFFERENT THAN EXPECTED. WE ARE EXPOSED TO EXCHANGE RATE RISKS ON FOREIGN CURRENCIES AND TO OTHER INTERNATIONAL RISKS WHICH MAY ADVERSELY AFFECT OUR BUSINESS AND RESULTS OF OPERATIONS. A FURTHER DECLINE IN THE U.S. DOMESTIC AUTOMOTIVE MANUFACTURING BUSINESS COULD ADVERSELY AFFECT OUR PROFESSIONAL SERVICES AND APPLICATION SERVICES BUSINESSES. CURRENT LAWS MAY NOT ADEQUATELY PROTECT OUR PROPRIETARY RIGHTS. THE LOSS OF CERTAIN KEY EMPLOYEES AND TECHNICAL PERSONNEL OR OUR INABILITY TO HIRE ADDITIONAL QUALIFIED PERSONNEL COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS. OUR QUARTERLY FINANCIAL RESULTS VARY AND MAY BE ADVERSELY AFFECTED BY A NUMBER OF UNPREDICTABLE FACTORS. MAINTENANCE REVENUE COULD DECLINE. UNANTICIPATED CHANGES IN OUR OPERATING RESULTS OR EFFECTIVE TAX RATES, OR EXPOSURE TO ADDITIONAL INCOME TAX LIABILITIES, COULD AFFECT OUR PROFITABILITY. OUR STOCK REPURCHASE PLANS MAY BE SUSPENDED OR TERMINATED AT ANY TIME, WHICH MAY RESULT IN A DECREASE IN OUR STOCK PRICE. IF THE FAIR VALUE OF OUR LONG-LIVED ASSETS DETERIORATED BELOW THEIR CARRYING VALUE, RECOGNITION OF AN IMPAIRMENT LOSS WOULD BE REQUIRED, WHICH WOULD ADVERSELY AFFECT OUR FINANCIAL RESULTS. FINANCIAL CONDITION AND OPERATING RESULTS. OUR ARTICLES OF INCORPORATION, BYLAWS AND RIGHTS AGREEMENT AS WELL AS CERTAIN PROVISIONS OF MICHIGAN LAW MAY HAVE AN ANTI-TAKEOVER EFFECT.

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859014--5/30/2008--COMPUWARE_CORP