Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding our adjusted financial performance objectives, are forward-looking statements (within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended).
Such forward-looking statements are based on our management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors. In preparing such forward-looking statements, we have in particular assumed an average U.S. dollar to euro exchange rate of US$1.45 per €1.00 and an average Japanese yen to euro exchange rate of JPY145 to €1.00 for the 2008 fourth quarter and an average U.S. dollar to euro exchange rate of US$1.50 per €1.00 and an average Japanese yen to euro exchange rate of JPY157 to €1.00 for the full year 2008; however, currency values fluctuate, and our results of operations may be significantly affected by changes in exchange rates. We have also assumed that there will be no substantial decline in general levels of corporate spending on information technology although we have tried to factor in the potential impact of the current global financial crisis on our fourth quarter objectives, and that our increased responsibility for both indirect and direct PLM sales channels, and the resulting commercial and management challenges, will not prevent us from maintaining growth in revenues or cause us to incur substantial unanticipated costs and inefficiencies. Our actual results or performance may also be materially negatively affected by the current global financial crisis, difficulties or adverse changes affecting our partners or our relationships with our partners, including our longstanding, strategic partner, IBM; new product developments and technological changes; errors or defects in our products; growth in market share by our competitors; and the realization of any risks related to the integration of any newly acquired company and internal reorganizations. Unfavorable changes in any of the above or other factors described in the Company’s AMF reports, including the Company’s 2007 Document de référence filed with the French AMF on April 4, 2008, could materially affect the Company’s financial position or results of operations.
Supplemental adjusted financial information
Readers are cautioned that the supplemental adjusted financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, our supplemental adjusted financial information may not be comparable to similarly titled adjusted measures used by other companies. Further specific limitations for individual adjusted measures, and the reasons for presenting adjusted financial information, are set forth in the Company’s Document de référence for the year ended December 31, 2007 filed with the AMF on April 4, 2008 and in the paragraph below.
In addition to the individual adjusted measures described in our most recent Document de référence, our unaudited IFRS 2008 quarterly financial information may reflect other operating income and expense, net comprised of income and expenses related to the relocation of the Company’s corporate headquarters and restructuring expenses. In our supplemental adjusted financial information, we exclude other operating income and expense effects because of their infrequent or non-recurring nature. As a result, we believe that our supplemental adjusted financial information helps investors better understand the current trends in our operating performance. However, other operating income and expense, net are components of our income and expenses for 2008 and by excluding them the supplemental adjusted financial information understates the net impact to our net income in 2008. Other operating income and expense, net are generally not recurring, and we do not expect to incur other operating income and expense, net as part of our normal business on a regular basis.
To compensate for these limitations, the supplemental adjusted financial information should be read not in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with IFRS.
The tables on pages 8 and 9 of this document set forth our supplemental
adjusted revenue, operating income and net income, which exclude the
effect of adjusting the carrying value of acquired companies’
deferred revenue, the expenses for the amortization of acquired
intangible assets and stock-based compensation expense (in each case, as
explained in our Document de référence),
as well as other operating income and expense, net (as explained above).
The tables also set forth the most comparable IFRS financial measure and
a reconciliation of the IFRS and the supplemental adjusted financial