Ability to Execute Corporate Strategy Moves to
Top Risk Concerning U.S. Technology Companies
Competition and Consolidation Remain #1 Risk According to BDO Risk Factor Report of Top 100 U.S.
May 12, 2010 09:18 AM Eastern Daylight Time
SAN FRANCISCO--(EON: Enhanced Online News)--Research released by BDO, a leading professional services
firm, identifies the most widespread risk factors among the 100 largest U.S. public technology companies. One of
the most dramatic increases was in companies’ concerns associated with properly executing corporate strategies
(68%, contrasted with only 27% in 2009 and 52% in 2008) despite the anticipation of rebounding economic
conditions. In line with the previous two years, strong competition ranked as the leading risk factor (94%). Failure to
develop or market new products/services tied for the top spot at 94 percent, up from 91 percent in 2009. General
economic conditions were more of a concern post-recession, rising to 93 percent from 85 percent last year and only
73 percent in 2008. Changes to federal, state and local regulations (88%) continue to weigh heavily on technology
companies, remaining consistent with previous years (81% in 2009 and 87% in 2008), trailed by management of
current and future M&A or divestitures (86%, the same as in 2009 and 2008).
These findings are from the 2010 BDO RiskFactor Report for Technology Businesses. The report examines
the risk factors listed in the fiscal year 2009 10-K SEC filings of the 100 largest publicly traded U.S. technology
companies; the factors were analyzed and ranked in order by frequency cited.
“There is always competition and consolidation in the tech sector, but because of the economic turbulence in the last
two years, its effects can be particularly severe for tech businesses. They lost valuable employees due to downsizing;
as the economy stabilizes, companies need to regain key personnel to serve the resurgence and jumpstart
innovation,” said Aftab Jamil, leader of the Technolog