896841--3/16/2009--AVID_TECHNOLOGY

related topics

{customer, product, revenue}

{system, service, information}

{property, intellectual, protect}

{stock, price, operating}

{product, market, service}

{condition, economic, financial}

{operation, international, foreign}

{competitive, industry, competition}

{cost, operation, labor}

{personnel, key, retain}

{control, financial, internal}

{acquisition, growth, future}

{operation, natural, condition}

Our recent efforts to transform our business may not yield the intended results of improved financial performance and increased returns for our stockholders. Our success depends in significant part on our ability to provide innovative solutions in response to dynamic and rapidly evolving market demand. Our revenues and operating results depend on several variables and may fluctuate from period to period. We expect the global economic downturn to continue to have a negative impact our business, although the magnitude of that impact is uncertain. The market segments in which we operate are highly competitive, and our competitors may be able to draw upon a greater depth and breadth of resources than those that are available to us. Our products may experience quality issues that could negatively impact our customer relationships, our market reputation and our operating results. We have incurred net losses in each of our three most recently completed fiscal years and we may continue to incur net losses in future periods Our intellectual property and trade secrets are valuable assets that may be subject to third-party infringement and misappropriation. Our engagement of independent contractors for product development and manufacturing may reduce our control over those activities, provide uncertain cost savings and expose our proprietary assets to greater risk of misappropriation. Lengthy procurement lead times and unpredictable life cycles and customer demand for some of our products may result in significant inventory risks. We obtain certain hardware product components under sole-source supply arrangements, and any disruptions to these arrangements could jeopardize the manufacturing or distribution of certain of our hardware products. We depend on the availability and proper functioning of certain third-party technology that we incorporate into or bundle with our products. Third parties have in the past, and may in the future, allege that our products infringe their intellectual property rights. Qualifying and supporting our products on multiple computer platforms is time-consuming and expensive. Our international operations expose us to significant exchange rate fluctuations, as well as regulatory, intellectual property and other risks that may adversely affect our operating results. Our revenues and operating results depend significantly on our third-party reseller and distribution channels. Our success depends in part on our ability to retain competent and skilled management and technical personnel. Potential acquisitions could be difficult to integrate, disrupt our business, dilute stockholder value or impair our financial results. A catastrophic event may significantly limit our ability to conduct business as normal. The market price of our common stock has been and may continue to be volatile.

Full 10-K form ▸

896841--3/16/2009--AVID_TECHNOLOGY_INC