876167--2/10/2006--PROGRESS_SOFTWARE_CORP_/MA

related topics
{product, market, service}
{customer, product, revenue}
{operation, international, foreign}
{regulation, government, change}
{acquisition, growth, future}
{competitive, industry, competition}
{cost, operation, labor}
Fluctuations in foreign currency exchange rates could have an adverse impact on our financial condition and results of operations. Technology and customer requirements evolve rapidly in our industry, and if we do not continue to develop new products and enhance our existing products in response to these changes, our business could be harmed. We are substantially dependent on our core product, Progress OpenEdge. Higher costs associated with some of our newer products could adversely affect our operating margins. We may make acquisitions or investments in new businesses, products or technologies that involve additional risks, which could disrupt our business or harm our financial condition or results of operations. We recognize a substantial portion of our revenue from sales made through third parties, including our application partners and OEMs, and adverse developments in the businesses of these third parties or in our relationships with them could harm our revenues and results of operations. The market for enterprise integration and messaging products and services in which our Sonic Software subsidiary participates is rapidly evolving and highly competitive, and failure of our Sonic ESB and other enterprise infrastructure products to achieve and maintain market acceptance could harm our business. The software industry in which we participate is intensely competitive, and our inability to compete effectively would harm our business.

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