ACIW ACI Worldwide Inc.

Risks

• Factors That May Affect Our Future Results or the Market Price of Our Common Stock
• The markets in which we compete are rapidly changing and highly competitive, and we may not be able to compete effectively.
• Our Universal Payments strategy could prove to be unsuccessful in the market.
• Our future profitability depends on demand for our products.
• Consolidations and failures in the financial services industry may adversely impact the number of customers and our revenues in the future.
• Potential customers may be reluctant to switch to a new vendor, which may adversely affect our growth, both in the United States and internationally.
• Failure to obtain renewals of customer contracts or obtain such renewals on favorable terms could adversely affect our results of operations and financial condition.
• The delay or cancellation of a customer project or inaccurate project completion estimates may adversely affect our operating results and financial performance.
• Our software products may contain undetected errors or other defects, which could damage our reputation with customers, decrease profitability, and expose us to liability.
• If our products and services fail to comply with legislation, government regulations, and industry standards to which our customers are subject, it could result in a loss of customers and decreased revenue.
• If we fail to comply with the complex regulations applicable to our payments business, we could be subject to liability or our revenues may be reduced.
• If we fail to comply with privacy regulations imposed on providers of services to financial institutions, our business could be harmed.
• If our security measures are breached or become infected with a computer virus, or if our services are subject to attacks that degrade or deny the ability of users to access our products or services, our business will be harmed by disrupting delivery of services and damaging our reputation.
• We may be unable to protect our intellectual property and technology.
• We may be subject to increasing litigation over our intellectual property rights.
• Certain payment funding methods expose us to the credit and/or operating risk of our clients.
• If we experience business interruptions or failure of our information technology and communication systems, the availability of our products and services could be interrupted which could adversely affect our reputation, business and financial condition.
• We are engaged in offshore software development activities, which may not be successful and which may put our intellectual property at risk.
• There are a number of risks associated with our international operations that could have a material impact on our operations and financial condition.
• Global economic conditions could reduce the demand for our products and services or otherwise adversely impact our cash flows, operating results and financial condition.
• Our business and operating results could be adversely affected by events outside of our control, including natural disasters, wars and outbreaks of disease or other adverse public health developments.
• We may become involved in litigation that could materially adversely affect our business financial condition, cash flows and/or results of operations.
• If we engage in acquisitions, strategic partnerships or significant investments in new business, we will be exposed to risks which could materially adversely affect our business.
• We may experience difficulties integrating Speedpay, which could cause us to fail to realize the anticipated benefits of the acquisition.
• Our balance sheet includes significant amounts of goodwill and intangible assets. The impairment of a significant portion of these assets could negatively affect our financial results.
• Our outstanding debt contains restrictions and other financial covenants that limit our flexibility in operating our business.
• Our existing levels of debt and debt service requirements may adversely affect our financial condition or operational flexibility and prevent us from fulfilling our obligations under our outstanding indebtedness.
• Replacement of the LIBOR benchmark interest rate could adversely affect our business, financial condition, and results of operations.
• Management’s backlog estimate may not be accurate and may not generate the predicted revenues.
• We may face exposure to unknown tax liabilities, which could adversely affect our financial condition, cash flows and/or results of operations.
• Our revenue and earnings are highly cyclical, our quarterly results fluctuate significantly, and we have revenue-generating transactions concentrated in the final weeks of a quarter which may prevent accurate forecasting of our financial results and cause our stock price to decline.
• Due to the industry we operate in, our stock price may be volatile.