CompUSA 2010 Annual Report Download - page 54

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PART I
Unless otherwise indicated, all references herein to Systemax Inc. (sometimes referred to as “Systemax,” the “Company” or “we”)
include its subsidiaries.
Forward Looking Statements
This report contains forward looking statements within the meaning of that term in the Private Securities Litigation Reform Act of
1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral
forward looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission
or otherwise. Statements contained in this report that are not historical facts are forward looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements may include, but are not
limited to, projections of revenue, income or loss and capital expenditures, statements regarding future operations, financing needs,
compliance with financial covenants in loan agreements, plans for acquisition or sale of assets or businesses and consolidation of
operations of newly acquired businesses, and plans relating to products or services of the Company, assessments of materiality,
predictions of future events and the effects of pending and possible litigation, as well as assumptions relating to the foregoing. In
addition, when used in this report, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and
variations thereof and similar expressions are intended to identify forward looking statements.
Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified based
on current expectations. Consequently, future events and results could differ materially from those set forth in, contemplated by, or
underlying the forward looking statements contained in this report. Statements in this report, particularly in “Item 1. Business,”
“Item 1A. Risk Factors,” “Item 3. Legal Proceedings,” “Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations,” and the Notes to Consolidated Financial Statements describe certain factors, among others, that could
contribute to or cause such differences.
Other factors that may affect our future results of operations and financial condition include, but are not limited to, unanticipated
developments in any one or more of the following areas, as well as other factors which may be detailed from time to time in our
Securities and Exchange Commission filings:
risks involved with e-commerce, including possible loss of business and customer dissatisfaction if outages or
other computer-related problems should preclude customer access to us
general economic conditions, such as decreased consumer confidence and spending, reductions in manufacturing
capacity, and inflation could result in our failure to achieve our historical sales growth rates and profit level
the markets for our products and services are extremely competitive and if we are unable to successfully respond
to our competitors’ strategies our sales and gross margins will be adversely affected
state sales tax laws may be changed which could result in ecommerce and direct mail retailers having to collect
sales taxes in states where the current laws do not require us to do so
goodwill and intangible assets may become impaired resulting in a charge to earnings
our substantial international operations are subject to risks such as fluctuations in currency rates ,foreign
regulatory requirements, political uncertainty and the management of our growing international operations
managing various inventory risks, such as being unable to profitably resell excess or obsolete inventory and/or the
loss of product return rights and price protection from our vendors
effective management of our rapid growth in retail stores in North America
meeting credit card industry compliance standards in order to maintain our ability to accept credit cards
significant changes in the computer products retail industry, especially relating to the distribution and sale of such
products
timely availability of existing and new products
risks associated with delivery of merchandise to customers by utilizing common delivery services
the effect on us of volatility in the price of paper and periodic increases in postage rates
borrowing costs or availability
pending or threatened litigation and investigations
the availability of key personnel
the continuation of key vendor relationships
the operation of the Company’ s management information systems
the ability to maintain satisfactory credit arrangements
Readers are cautioned not to place undue reliance on any forward looking statements contained in this report, which speak only as of
the date of this report. We undertake no obligation to publicly release the result of any revisions to these forward looking statements
that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events.