877890--2/27/2008--CITRIX_SYSTEMS

related topics

{product, market, service}

{system, service, information}

{customer, product, revenue}

{acquisition, growth, future}

{tax, income, asset}

{personnel, key, retain}

{debt, indebtedness, cash}

{loss, insurance, financial}

{operation, international, foreign}

{regulation, government, change}

{stock, price, operating}

{condition, economic, financial}

{cost, operation, labor}

{operation, natural, condition}

{property, intellectual, protect}

{financial, litigation, operation}

{regulation, change, law}

The virtualization products and services we acquired in connection with our acquisition of XenSource are based on an emerging technology, and therefore the potential market for this line of products and services remains uncertain. The benefits we anticipate from acquiring XenSource may not be realized. Our business could be adversely impacted by conditions affecting the information technology market. Our long sales cycle for enterprise-wide sales could cause significant variability in our revenue and operating results for any particular period. We face intense competition, which could result in fewer customer orders and reduced revenues and margins. Sales of products within our Application Virtualization product line constitute a majority of our revenue and decreases in demand for our Application Virtualization products could adversely affect our results of operations and financial condition. If we do not develop new products and services or enhancements to our existing products and services, our business, results of operations and financial condition could be adversely affected. Our business could be adversely impacted by a failure to renew our agreements with Microsoft for source code access. If we lose key personnel or cannot hire enough qualified employees, our ability to manage our business could be adversely affected. If we fail to manage our operations and grow revenue or fail to continue to effectively control expenses, our future operating results could be adversely affected. Acquisitions present many risks, and we may not realize the financial and strategic goals we anticipate at the time of an acquisition. Attractive acquisition opportunities may not be available to us, which could negatively affect the growth of our business. If we determine that any of our goodwill or intangible assets, including technology purchased in acquisitions, are impaired, we would be required to take a charge to earnings, which could have a material adverse effect on our results of operations. Our business could be adversely affected if we are unable to expand and diversify our distribution channels. We could change our licensing programs or subscription renewal programs, which could negatively impact the timing of our recognition of revenue. Sales of our Subscription Advantage product constitute substantially all of our License Updates revenue and a large portion of our deferred revenue. As our international sales and operations grow, we could become increasingly subject to additional risks that could harm our business. Our proprietary rights could offer only limited protection. Our products, including products obtained through acquisitions, could infringe third-party intellectual property rights, which could result in material costs. If open source software programmers, many of whom we do not employ, do not continue to develop and enhance the open source Xen hypervisor, we may be unable to develop new XenServer products, adequately enhance our existing XenServer products or meet customer requirements for innovation, quality and price of these Xen products. We are subject to risks associated with our strategic and technology relationships. If we lose access to third party licenses, releases of our products could be delayed. Our success depends on our ability to attract and retain and further penetrate large enterprise customers. Our success may depend on our ability to attract and retain small-sized customers. We rely on indirect distribution channels and major distributors that we do not control. For certain of our products we rely on third-party suppliers and contract manufacturers, making us vulnerable to supply problems and price fluctuations. Our products could contain errors that could delay the release of new products and may not be detected until after our products are shipped. Our synthetic lease is an off-balance sheet arrangement that could negatively affect our financial condition and results. We have entered into a credit facility agreement that restrict our ability to conduct our business and failure to comply with such agreements may have an adverse effect on our business, liquidity and financial position. If our security measures are breached and unauthorized access is obtained to our Online Services division customers data, our services may be perceived as not being secure and customers may curtail or stop using our service. Evolving regulation of the Web may adversely affect our Online Services division. Natural disasters or other unanticipated catastrophes that result in a disruption of our operations could negatively impact our results of operations. If we do not generate sufficient cash flow from operations in the future, we may not be able to fund our product development and acquisitions and fulfill our future obligations. Matters relating to or arising out of our historical stock option granting practices, including regulatory inquiries or proceedings, litigation matters and potential additional cash and non-cash charges, could have a material adverse effect on us. If stock balancing returns or price adjustments exceed our reserves, our operating results could be adversely affected. Our stock price could be volatile, and you could lose the value of your investment. Changes or modifications in financial accounting standards related to share-based compensation may have a material adverse impact on our reported results of operations. Our business is subject to seasonal fluctuations. Funds from certain of our auction rate securities may not be accessible within 12 months and our auction rate securities may experience an other-than-temporary decline in value, which would adversely affect our income. Our business and investments could be adversely impacted by unfavorable economic political and social conditions.

Full 10-K form ▸

877890--2/27/2008--CITRIX_SYSTEMS_INC