Electronic Arts 2012 Annual Report Download - page 108

inherent limitations in our ability to simulate a full-scale operating environment in advance of implementation.
There can be no assurance that the conversion to, and the implementation of, the new financial information
system will not impede our ability to accurately and timely process, prepare and analyze the financial data we use
in making operating decisions and which form the basis of the financial information we include in the periodic
reports we file with the SEC. In addition, a number of important operational functions, including receiving
product orders, product shipments and inventory maintenance, among others, will be reliant on the new system
and therefore, any problems with the implementation or other system problems may result in a disruption to our
business operations.
We rely on business partners in many areas of our business and our business may be harmed if they are
unable to honor their obligations to us.
We rely on various business partners, including third-party service providers, vendors, licensing partners,
development partners, and licensees, among others, in many areas of our business. In many cases, these third
parties are given access to sensitive and proprietary information in order to provide services and support to our
teams. These third parties may misappropriate our information and engage in unauthorized use of it. The failure
of these third parties to provide adequate services and technologies, or the failure of the third parties to
adequately maintain or update their services and technologies, could result in a disruption to our business
operations. Further, disruptions in the financial markets and economic downturns may adversely affect our
business partners and they may not be able to continue honoring their obligations to us. Some of our business
partners are highly-leveraged or small businesses that may be particularly vulnerable. Alternative arrangements
and services may not be available to us on commercially reasonable terms or we may experience business
interruptions upon a transition to an alternative partner or vendor. If we lose one or more significant business
partners, our business could be harmed.
Our stock price has been volatile and may continue to fluctuate significantly.
The market price of our common stock historically has been, and we expect will continue to be, subject to
significant fluctuations. These fluctuations may be due to factors specific to us (including those discussed in the risk
factors above, as well as others not currently known to us or that we currently do not believe are material), to
changes in securities analysts’ earnings estimates or ratings, to our results or future financial guidance falling below
our expectations and analysts’ and investors’ expectations, to factors affecting the entertainment, computer,
software, Internet, media or electronics industries, to our ability to successfully integrate any acquisitions we may
make, or to national or international economic conditions. In particular, economic downturns may contribute to the
public stock markets experiencing extreme price and trading volume volatility. These broad market fluctuations
have and could continue to adversely affect the market price of our common stock.
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