Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Good
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Financial report summary
?Competition
Equifax • International Business Machines • Microsoft • Cisco Systems • Open Text • OneSpan • PC Connection • Visium • Qualys • NetgearRisks
- If we are unable to develop new and enhanced solutions, or if we are unable to continually improve the performance, features, and reliability of our existing solutions, our business and operating results could be adversely affected.
- We operate in a highly competitive and dynamic environment, and if we are unable to compete effectively, we could experience a loss in market share and a reduction in revenue.
- Our acquisitions and divestitures create special risks and challenges that could adversely affect our financial results.
- Our revenue and operating results depend significantly on our ability to retain our existing customers and expand sales to them, convert existing non-paying customers to paying customers and add new customers.
- We may need to change our pricing models to compete successfully.
- If we fail to manage our sales and distribution channels effectively, or if our partners choose not to market and sell our solutions to their customers, our operating results could be adversely affected.
- Changes in industry structure and market conditions have and may continue to lead to charges related to discontinuance of certain of our products or businesses and asset impairments.
- Our international operations involve risks that could increase our expenses, adversely affect our operating results and require increased time and attention of our management.
- Our future success depends on our ability to attract and retain personnel in a competitive marketplace.
- Our solutions, systems, websites and the data on these sources have been and may continue to be subject to cybersecurity events that could materially harm our reputation and future sales.
- We collect, use, disclose, store or otherwise process personal information, which subjects us to privacy and data security laws and contractual commitments.
- Our inability to successfully recover from a disaster or other business continuity event could impair our ability to deliver our products and services and harm our business.
- We are dependent upon Broadcom for certain engineering and threat response services, which are critical to many of our products and business.
- If we fail to offer high-quality customer support, our customer satisfaction may suffer and have a negative impact on our business and reputation.
- Our solutions are complex and operate in a wide variety of environments, systems and configurations, which could result in failures of our solutions to function as designed.
- Negative publicity regarding our brand, solutions and business could harm our competitive position.
- Our reputation and/or business could be negatively impacted by ESG matters and/or our reporting of such matters.
- We are affected by seasonality, which may impact our revenue and results of operations.
- Our solutions are highly regulated, which could impede our ability to market and provide our solutions or adversely affect our business, financial position, and results of operations.
- If we do not protect our proprietary information and prevent third parties from making unauthorized use of our products and technology, our financial results could be harmed.
- From time to time we are a party to lawsuits and investigations, which typically require significant management time and attention and result in significant legal expenses.
- Third parties have claimed and, from time to time, additional third parties may claim that we infringe their proprietary rights, which has previously and could in the future cause us to incur significant legal expenses and prevent us from selling our products.
- Some of our products contain “open source” software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business.
- There are risks associated with our outstanding and future indebtedness that could adversely affect our financial condition.
- Our Amended and Restated Credit Agreement imposes operating and financial restrictions on us.
- The failure of financial institutions or transactional counterparties could adversely affect our current and projected business operations and our financial condition and result of operations.
- Hedging or other mitigation actions to mitigate against interest rate exposure may adversely affect our earnings, limit our gains or result in losses, which could adversely affect cash available for distributions.
- Government efforts to combat inflation, along with other interest rate pressures arising from an inflationary economic environment, have led to and may continue to lead to higher financing costs.
- Fluctuations in our quarterly financial results have affected the trading price of our stock in the past and could affect the trading price of our stock in the future.
- Changes to our effective tax rate, including through the adoption of new tax legislation or exposure to additional income tax liabilities, could increase our income tax expense and reduce (increase) our net income (loss), cash flows and working capital. In addition, audits by tax authorities could result in additional tax payments for prior periods.
- Any changes or interpretations to existing accounting pronouncements or taxation rules or practices may cause fluctuations in our reported results of operations or affect how we conduct our business.
Management Discussion
- Note: Percentages may not add due to rounding.
- Net revenues increased $15 million, primarily due to a $12 million increase in sales of our consumer security products and a $11 million increase in sales of our identity and information protection products. This was partially offset by a $8 million decrease in our legacy product offerings. This is inclusive of $2 million of foreign exchange headwinds, in our consumer security solutions.
- Net revenues increased $454 million, due to a $376 million increase in sales of our consumer security products and a $78 million increase in sales of our identity and information protection products. This is inclusive of $18 million of foreign exchange headwinds, primarily in our consumer security solutions.