February 2007
Intermediate to advanced
288 pages
6h 32m
English
The Risk Factors section consists of legal boilerplate material spanning a number of pages and covering both industry- and company-specific risks (Exhibit 4.10). A close look at this section could yield important red flags while allowing the readers to familiarize themselves with some of the industry dynamics within which that company operates.
| Challenges to our business model may reduce our revenues and operating margins. Our business model is based upon customers agreeing to pay a fee to license software developed and distributed by us. Under this commercial software model, software developers bear the costs of converting original ideas into software products through investments in research and development, offsetting these costs with the revenue received from the distribution of their products. We believe the commercial software model has had substantial benefits for users of software, allowing them to rely on our expertise and the expertise of other software developers that have powerful incentives to develop innovative software that is useful, reliable, and compatible with other software and hardware. In recent years, a non-commercial software model has evolved that presents a growing challenge to the commercial software model. Under the non-commercial software model, open source software produced by loosely ... |
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