Unisys (UIS) risk factors, FY2024 10-K

BUSINESS AND OPERATING RISKS

1. 01A significant portion of our revenue is derived from our installed base. Future results may be adversely impacted if we are unable to maintain our installed base and sell new solutions and related services to existing and new clients
2. 02Furthermore, if ClearPath Forward is sold in the form of Software as a Service (SaaS) at an accelerated pace, this would have a negative timing impact on our short- and medium-term cash position and could adversely impact our operations, financial condition and liquidity
3. 03Future results may be materially adversely impacted if we are unable to grow revenue, expand profit margin and generate sufficient cash flows in our businesses
4. 04Cybersecurity incidents, security incidents and breaches and other disruptions in our IT systems have occurred and will continue to occur and could result in the incurrence of significant costs as well as harm to our business
5. 05Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic, geopolitical or political conditions as well as acts of war, terrorism, natural disasters or the widespread outbreak of infectious diseases
6. 06Our inability to effectively anticipate and respond to rapid technological innovation, such as artificial intelligence among others, in our industry could affect our results of operations and cash flows
7. 07Our work with government and public sector clients exposes us to additional risks inherent in the government contracting and public sector environment
8. 08We have been, and expect in the future to be, required to contribute additional cash to meet our significant underfunded defined benefit pension plan obligations, and these contributions could have a material impact on our operations, financial condition and liquidity
9. 09If we are unable to maintain our credit rating or access the financing markets, it may adversely impact our business and liquidity
10. 10If we are unable to align employees and their skills with global client demand around the world and retain and develop employees and management with strong leadership skills, our business may be adversely impacted
11. 11We face aggressive competition, which could lead to reduced demand for our solutions and related services and could have an adverse effect on our business
12. 12Our commercial contracts have not been, and in the future may not be, as profitable as expected or provide the expected level of revenue
13. 13Future results depend in part on the pricing, performance and capabilities of third parties with whom we have commercial relationships
14. 14If we are unable to protect or enforce our intellectual property rights, our services or solutions infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected
15. 15We could face business and financial risk through the completion of acquisitions or dispositions
16. 16Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violations of these legal and regulatory requirements could harm our business and cause reputational risk
17. 17Global expectations relating to environmental, social and governance considerations expose us to potential liabilities, reputational harm and could adversely affect our business, results of operations, financial condition, stock price or reputation
18. 18Legal proceedings and environmental matters have and may continue to impact our results of operations, cash flows and business
19. 19If we fail again to maintain an effective system of internal control over financial reporting and disclosure controls and procedures, our ability to report timely and accurate financial results or comply with applicable regulations could be impaired, and our business and operating results may be adversely affected
20. 20Impairment of goodwill or intangible assets has negatively impacted our results of operations. If goodwill or intangible assets are further or fully impaired in the future, our results of operations will be negatively impacted further
21. 21Our ability to use our net operating loss (NOL) carryforwards and certain other tax attributes may be limited