ACI Worldwide (ACIW)

Risks

• The markets in which we compete are rapidly changing and highly competitive, and we may not be able to compete effectively.
• 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.
• 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 may be harmed by disrupting delivery of services and damaging our reputation.
• 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 implementing our Three Pillar strategy, and the Three Pillar strategy could prove
• unsuccessful in growing our business.
• Certain anti-takeover provisions contained in our charter and under Delaware law could hinder a takeover attempt.
• Certain payment funding methods expose us to the credit and/or operating risk of our clients.
• Potential customers may be reluctant to switch to a new vendor, which may adversely affect our growth, both in the United States and internationally.
• We may be unable to protect our intellectual property and technology.
• We may be subject to increasing litigation over our intellectual property rights.
• 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.
• 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.
• 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 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.
• We may face exposure to unknown tax liabilities, which could adversely affect our financial condition, cash flows and/or results of operations.
• Consolidations and failures in the financial services industry may adversely impact the number of customers and our revenues in the future.
• Our stock price may be volatile.
• Our future profitability depends on demand for our products.
• 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 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.
• Management’s backlog estimate may not be accurate and may not generate the predicted revenues.
• 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.
• 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.
• The effects of the COVID-19 pandemic have materially affected how we, our clients and business partners are operating, and the duration and extent to which this will impact our future results of operations and overall financial performance remains uncertain.
• If our revenues or mix of revenues are below anticipated levels or if our operating results are below analyst or investor expectations, the market price of our common stock could be adversely affected.