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Risks

• If we do not continue to develop technologically advanced products that successfully integrate with the software products and enhancements used by our customers, future revenues and our operating results may be negatively affected
• Product development is a long, expensive and uncertain process, and we may terminate one or more of our development programs
• Our investment in our current research and development efforts may not provide a sufficient or timely return
• If our software products and services do not gain market acceptance, our operating results may be negatively affected
• Failure to protect our intellectual property could harm our ability to compete effectively
• Other companies may claim that we infringe their intellectual property, which could materially increase costs and materially harm our ability to generate future revenues and profits
• Our software products and services may contain defects that could harm our reputation, be costly to correct, delay revenues and expose us to litigation
• Our software products rely on the stability of infrastructure software that, if not stable, could negatively impact the effectiveness of our products, resulting in harm to our reputation and business
• Risks associated with the evolving use of the Internet, including changing standards, competition and regulation and associated compliance efforts, may adversely impact our business
• Business disruptions, including those arising from disasters or other catastrophic events, may adversely affect our operations
• Unauthorized disclosures, cyber-attacks and breaches of data security may adversely affect our operations
• Our success depends on our relationships with strategic partners, distributors and third-party service providers and any reduction in the sales efforts by distributors, cooperative efforts from our partners or service from third party providers could materially impact our revenues
• The loss of licenses to resell or use third-party software or the lack of support or enhancement of such software could adversely affect our business
• Current and future competitors could have a significant impact on our ability to generate future revenues and profits
• The length of our sales cycle can fluctuate significantly which could result in significant fluctuations in revenues being recognized from quarter to quarter
• Our existing customers might cancel contracts with us, fail to renew contracts on their renewal dates and/or fail to purchase additional services and products, and we may be unable to attract new customers, which could materially adversely affect our operating results
• Consolidation in the industry, particularly by large, well-capitalized companies, could place pressure on our operating margins which could, in turn, have a material adverse effect on our business
• We may be unable to maintain or expand our base of SMB and consumer customers, which could adversely affect our anticipated future growth and operating results
• Our sales to government clients expose us to business volatility and risks, including government budgeting cycles and appropriations, early termination, audits, investigations, sanctions and penalties
• Geopolitical instability, political unrest, war and other global conflicts, including the Russia-Ukraine conflict, has affected and may continue to affect our business
• The COVID-19 pandemic has and may continue to further negatively affect our business, operations and financial performance
• The impact of the COVID-19 pandemic continues to create significant uncertainty in the global economy and for our business, operations and financial performance
• The restructuring of our operations, including steps taken to mitigate the anticipated negative impact of the COVID-19 pandemic, may be ineffective and may adversely affect our business and our finances, and we may incur additional restructuring charges in connection with such actions
• We have implemented a Flex-Office program, which will subject us to certain operational challenges and risks
• We must continue to manage our internal resources during periods of company growth, or our operating results could be adversely affected
• If we lose the services of our executive officers or other key employees or if we are not able to attract or retain top employees, our business could be significantly harmed
• Our compensation structure may hinder our efforts to attract and retain vital employees
• Increased attention from shareholders, customers and other key relationships regarding our ESG practices could impact our business activities, financial performance and reputation
• Acquisitions, investments, joint ventures and other business initiatives may negatively affect our operating results
• We may be unable to successfully integrate acquired businesses or do so within the intended timeframes, which could have an adverse effect on our financial condition, results of operations and business prospects
• Loss of key personnel could impair the integration of acquired businesses, lead to loss of customers and a decline in revenues, or otherwise could have an adverse effect on our operations
• We may fail to realize all of the anticipated benefits of any acquisitions, including our acquisition of Zix, or those benefits may take longer to realize than expected
• Businesses we acquire may have disclosure controls and procedures and internal controls over financial reporting, cybersecurity and compliance with data privacy laws that are weaker than or otherwise not in conformity with ours
• Our provision for income taxes and effective income tax rate may vary significantly and may adversely affect our results of operations and cash resources
• As part of the ongoing audit of our Canadian tax returns by the Canada Revenue Agency (CRA), we have received notices of, and are appealing, reassessments for Fiscal 2012, Fiscal 2013, Fiscal 2014, Fiscal 2015 and Fiscal 2016, and the CRA is auditing Fiscal 2017. An adverse outcome of these ongoing audits could have a material adverse effect on our financial position and results of operations
• Risks associated with data privacy issues, including evolving laws and regulations and associated compliance efforts, may adversely impact our business
• Certain of our products may be perceived as, or determined by the courts to be, a violation of privacy rights and related laws. Any such perception or determination could adversely affect our revenues and results of operations
• We may not generate sufficient cash flow to satisfy our unfunded pension obligations
• Fluctuations in foreign currency exchange rates could materially affect our financial results
• Our indebtedness could limit our operations and opportunities
• Our revenues and operating results are likely to fluctuate, which could materially impact the market price of our Common Shares
• Changes in the market price of our Common Shares and credit ratings of our outstanding debt securities could lead to losses for shareholders and debt holders
• Unexpected events may materially harm our ability to align when we incur expenses with when we recognize revenues
• We may fail to achieve our financial forecasts due to inaccurate sales forecasts or other factors
• Our international operations expose us to business, political and economic risks that could cause our operating results to suffer
• We may become involved in litigation that may materially adversely affect us
• The declaration, payment and amount of dividends will be made at the discretion of our Board of Directors and will depend on a number of factors
• Our operating results could be adversely affected by any weakening of economic conditions
• Stress in the global financial system may adversely affect our finances and operations in ways that may be hard to predict or to defend against