883241--12/21/2007--SYNOPSYS

related topics

{regulation, change, law}

{product, market, service}

{property, intellectual, protect}

{operation, natural, condition}

{condition, economic, financial}

{operation, international, foreign}

{personnel, key, retain}

{control, financial, internal}

{stock, price, operating}

{acquisition, growth, future}

{competitive, industry, competition}

{system, service, information}

{debt, indebtedness, cash}

{financial, litigation, operation}

Weakness, budgetary caution or consolidation in the semiconductor and electronics industries may continue to negatively impact our business. Competition in the EDA industry may have a material adverse effect on our business and financial results. Lack of growth in new IC design starts, industry consolidation and other potentially long-term trends may adversely affect the EDA industry, including demand for our products and services. Changes in, or interpretations of, accounting principles could result in unfavorable accounting charges or effects, including changes to our prior financial statements, which could cause our stock price to decline. Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109 We have received a Revenue Agent's Report from the Internal Revenue Service claiming a significant increase in our U.S. taxable income. An adverse outcome could have a material effect on our results of operations and financial condition. Unfavorable tax law changes, an unfavorable government review of our tax returns or changes in our geographical earnings mix or forecasts of foreign source income could adversely affect our effective tax rate and our operating results. Our revenue and earnings fluctuate, which could cause our financial results to not meet expectations and our stock price to decline. The failure to meet the semiconductor industry's demands for advancing EDA technology and continued cost reductions may adversely affect our financial results. Customer payment defaults or related issues could adversely affect our financial condition and results of operations. Businesses we have acquired or that we may acquire in the future may not perform as we project. Conditions of foreign economies, foreign exchange rate fluctuations and the increasingly global nature of our operations could adversely affect our performance. From time to time we are subject to claims that our products infringe on third party intellectual property rights. A failure to protect our proprietary technology would have a material adverse effect on our business, results of operations and financial condition. Our business is subject to evolving corporate governance and public disclosure regulations that have increased both our costs and the risk of noncompliance, which could have an adverse effect on our stock price. A failure to timely recruit and retain key employees would have a material adverse effect on our business. Product errors or defects could expose us to liability and harm our reputation. Catastrophic events may disrupt our business.

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883241--12/21/2007--SYNOPSYS_INC