CarMax 1999 Annual Report Download - page 31

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(m) the inability of the CarMax business to reach expected
mature sales and earnings potential;
(n) limited or lack of availability of new-car franchises within
a suitable radius of existing and proposed CarMax stores or lim-
ited manufacturer approval of franchise acquisitions;
(o) availability of long-term financing to support Divx;
(p) the early stage of market development and absence of
operating history for Divx and therefore lack of assurance that
this business will achieve significant sales or profits;
(q) the early stage of Divx market development and therefore
lack of assurance that the product support systems will work as
expected on a large scale;
(r) ability to maintain and acquire additional long-term agree-
ments for title releases on Divx discs, manufacturing of Divx discs
and licensing of the proprietary Divx hardware architecture;
(s) developments or assertions by or against Divx, relating to
intellectual property rights;
(t) difficulty securing long-term agreements for the distribu-
tion of Divx discs through retail outlets; and
(u) development of alternative and highly competitive means
of distributing movies for in-home viewing.
The United States retail industry and the specialty retail
industry in particular are dynamic by nature and have undergone
significant changes over the past several years. The Company’s
ability to anticipate and successfully respond to continuing chal-
lenges is key to achieving its expectations.
CIRCUIT CITY STORES, INC.
CIRCUIT CITY STORES, INC. 1999 ANNUAL REPORT 29