Henry Schein 2009 Annual Report Download - page 113

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
101
Note 17 – Quarterly Information (Unaudited) – (Continued)
Our business has been subject to seasonal and other quarterly fluctuations. Net sales and operating
profits generally have been higher in the third and fourth quarters due to the timing of sales of software,
equipment and seasonal products (including influenza vaccine, equipment and software products),
purchasing patterns of office-based healthcare practitioners and year-end promotions. Net sales and
operating profits generally have been lower in the first quarter, primarily due to increased sales in the prior
two quarters. Quarterly results may also be adversely affected by a variety of other factors, including:
• costs of developing new applications and services;
• costs related to acquisitions and/or integrations of technologies or businesses;
• the timing and amount of sales and marketing expenditures;
• timing or pricing changes offered by our vendors;
• timing of the introduction of new products and services by our vendors;
• changes in or availability of vendor contracts or rebate programs;
• vendor rebates based upon attaining certain growth goals;
• changes in the way vendors introduce or deliver products to market;
• exclusivity requirements with certain vendors may prohibit us from distributing competitive products
manufactured by other vendors;
• loss of sales representatives;
• general economic conditions, as well as those specific to the healthcare industry and related
industries;
• the timing of the release of upgrades and enhancements to our technology-related products and
services;
• our success in establishing or maintaining business relationships;
• restructuring charges;
• changes in accounting principles;
• unexpected difficulties in developing and manufacturing products;
•
p
roduct availability or recalls by manufacturers;
• exposure to product liability and other claims in the event that the use of the products we sell results in
injury; and
• increases in the cost of shipping or service issues with our third party shippers.
Any change in one or more of these or other factors could cause our annual or quarterly operating
results to fluctuate. If our operating results do not meet or exceed market expectations, our stock price
may decline.