Ingram Micro 2006 Annual Report Download - page 40

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Our quarterly results have fluctuated significantly. Our quarterly operating results have fluctuated
significantly in the past and will likely continue to do so in the future as a result of:
• seasonal variations in the demand for our products and services such as lower demand in Europe during the
summer months, worldwide pre-holiday stocking in the retail channel during the September-to-December
period and the seasonal increase in demand for our North American fee-based logistics related services in the
fourth quarter which affects our operating expenses and gross margins;
• competitive conditions in our industry, which may impact the prices charged and terms and conditions
imposed by our suppliers and/or competitors and the prices we charge our customers, which in turn may
negatively impact our revenues and/or gross margins;
• currency fluctuations in countries in which we operate;
• variations in our levels of excess inventory and doubtful accounts, and changes in the terms of vendor-
sponsored programs such as price protection and return rights;
• changes in the level of our operating expenses;
• the impact of acquisitions we may make;
• the impact of and possible disruption caused by reorganization efforts, as well as the related expenses and/or
charges;
• the loss or consolidation of one or more of our major suppliers or customers;
• the impact of adverse outcomes in litigation and contingencies;
• product supply constraints;
• interest rate fluctuations, which may increase our borrowing costs and may influence the willingness of
customers and end-users to purchase products and services; and
• general economic or geopolitical conditions.
These historical variations may not be indicative of future trends in the near term. Our narrow operating
margins may magnify the impact of the foregoing factors on our operating results. We believe that you should not
rely on period-to-period comparisons of our operating results as an indication of future performance. In addition, the
results of any quarterly period are not indicative of results to be expected for a full fiscal year.
We are dependent on third-party shipping companies for the delivery of our products. We rely almost
entirely on arrangements with third-party shipping companies for the delivery of our products. The termination of
our arrangements with one or more of these third-party shipping companies, or the failure or inability of one or more
of these third-party shipping companies to deliver products from suppliers to us or products from us to our reseller
customers or their end-user customers, could disrupt our business and harm our reputation and net sales.
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