Henry Schein 2009 Annual Report Download - page 32

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transportation of such materials could subject us to liability. We have various insurance policies, including
product liability insurance, covering risks and in amounts that we consider adequate. In many cases in which
we have been sued in connection with products manufactured by others, the manufacturer of the product
provides us with indemnification. There can be no assurance that the insurance coverage we maintain is
sufficient or will be available in adequate amounts or at a reasonable cost, or that indemnification agreements
will provide us with adequate protection. A successful claim brought against us in excess of available
insurance or not covered by indemnification agreements, or any claim that results in significant adverse
publicity against us, could have an adverse effect on our business.
Our technology segment depends upon continued software and e-services product development, technical
support and successful marketing.
Competition among companies supplying practice management software and/or e-services is intense and
increasing. Our future sales of practice management software and e-services will depend on, among other
factors:
• the effectiveness of our sales and marketing programs;
• our ability to enhance our products and services; and
• our ability to provide ongoing technical support.
We cannot be sure that we will be successful in introducing and marketing new software, software
enhancements or e-services, or that such software, software enhancements and e-services will be released on
time or accepted by the market. Our software and applicable e-services products, like software products
generally, may contain undetected errors or bugs when introduced or as new versions are released. We cannot
be sure that future problems with post-release software errors or bugs will not occur. Any such defective
software may result in increased expenses related to the software and could adversely affect our relationships
with the customers using such software. We do not have any patents on our software or e-services, and rely
upon copyright, trademark and trade secret laws, as well as contractual and common law protections. We
cannot provide assurance that such legal protections will be available or enforceable to protect our software or
e-services products.
Risks generally associated with our information systems could adversely affect our results of operations.
We rely on information systems in our business to obtain, rapidly process, analyze and manage data to,
among other things:
• maintain and manage worldwide systems to facilitate the purchase and distribution of thousands of
inventory items from numerous distribution centers;
• receive, process and ship orders on a timely basis;
• manage the accurate billing and collections for thousands of customers; and
• process payments to suppliers.
Our results of operations could be adversely affected if these systems are interrupted, damaged by
unforeseen events, or fail for any extended period of time.
Our revenues depend on our relationships with capable sales personnel as well as customers, suppliers and
manufacturers of the products that we distribute.
Our future operating results depend on our ability to maintain satisfactory relationships with qualified
sales personnel as well as customers, suppliers and manufacturers. If we fail to maintain our existing
relationships with such persons or fail to acquire relationships with such key persons in the future, our
business may be adversely affected.