To: Bill Wexler who wrote (1821 ) 12/24/1997 4:42:00 PM From: troy halle Read Replies (2) | Respond to of 3441
Will Avant be able to keep revenues coming in like this ? They are in deep doo doo. Merry Christmas to All! International revenue, principally to customers in Asia, accounted for approximately 33%, 32%, 34% and 44% of Avant!'s total revenue in 1994, 1995, 1996 and the first nine months of 1997, respectively. Avant! expects that international license and service revenue, particularly in Asia, will continue to account for a significant portion of its total revenue. Avant!'s international revenue involves a number of risks, including the impact of possible recessionary environments in economies outside the U.S., longer receivables collection periods and greater difficulty in accounts receivable collection, difficulties in staffing and managing foreign operations, political and economic instability, unexpected changes in regulatory requirements, reduced protection of intellectual property rights in some countries and tariffs and other trade barriers. Currency exchange fluctuations in countries in which Avant! licenses its products could also materially adversely affect Avant!'s business, operating results and financial condition by resulting in pricing that is not competitive with products priced in local currencies. Furthermore, there can be no assurance that in the future Avant! will be able to continue to price its products and services internationally in U.S. dollars because of changing sovereign restrictions on importation and exportation of foreign currencies as well as other practical considerations. In addition, the laws of certain countries do not protect Avant!'s products and intellectual property rights to the same extent as do the laws of the U.S. Accordingly, there can be no assurance that these factors will not have a material adverse effect on Avant!'s future international sales and, consequently, on Avant!'s business, operating results and financial condition. In addition, there can be no assurance that Avant! will be able to sustain or increase revenue derived from international licensing and service or that the foregoing factors will not have a material adverse effect on Avant!'s future international license and service revenue, and, consequently, on Avant!'s business, operating results and financial condition.