CompUSA 2010 Annual Report Download - page 59

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Available Information
We maintain an internet website at www.systemax.com. We file reports with the Securities and Exchange Commission and make
available free of charge on or through this website our annual reports on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K, including all amendments to those reports. These are available as soon as is reasonably practicable after they are
filed with the SEC. All reports mentioned above are also available from the SEC’ s website (www.sec.gov). The information on our
website is not part of this or any other report we file with, or furnish to, the SEC.
Our Board of Directors has adopted the following corporate governance documents with respect to the Company (the “Corporate
Governance Documents”):
Corporate Ethics Policy for officers, directors and employees
Charter for the Audit Committee of the Board of Directors
Charter for the Compensation Committee of the Board of Directors
Charter for the Nominating/Corporate Governance Committee of the Board of Directors
Corporate Governance Guidelines and Principles
In accordance with the listing standards of the New York Stock Exchange, each of the Corporate Governance Documents is available
on our Company website (www.systemax.com).
Item 1A. Risk Factors.
There are a number of factors and variables described below that may affect our future results of operations and financial condition.
Other factors of which we are currently not aware or that we currently deem immaterial may also affect our results of operations and
financial position.
Risks Related to the Economy and Our Industries
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 levels.
Current economic conditions may cause the loss of consumer confidence in the Company’ s markets which may result in a
decrease of spending in the categories of products we sell. With conditions in the market for technology products
remaining highly competitive, reductions in our selling prices, as we experienced in 2010 and 2009, would adversely affect
our revenues and profits. It is also possible that as manufacturers react to the marketplace they may reduce manufacturing
capacity or allocations to their customers creating shortages of product. Both we and our customers are subject to global
political, economic and market conditions, including inflation, interest rates, energy costs, the impact of natural disasters,
military action and the threat of terrorism. Our consolidated results of operations are directly affected by economic
conditions in North America and Europe. We may experience a decline in sales as a result of poor economic conditions
and the lack of visibility relating to future orders. Our results of operations depend upon, among other things, our ability to
maintain and increase sales volumes with existing customers, our ability to limit price reductions and maintain our
margins, our ability to attract new customers and the financial condition of our customers. A decline in the economy that
adversely affects our customers, causing them to limit or defer their spending, would likely adversely affect our sales,
prices and profitability as well. We cannot predict with any certainty whether we will be able to maintain or improve upon
historical sales volumes with existing customers, or whether we will be able to attract new customers.
In response to economic and market conditions, from time to time we have undertaken initiatives to reduce our cost
structure where appropriate. These initiatives, as well as any future workforce and facilities reductions, may not be
sufficient to meet current and future changes in economic and market conditions and allow us to continue to achieve the
growth rates and levels of profitability we have recently experienced. In addition, costs actually incurred in connection
with our restructuring actions may be higher than our estimates of such costs and/or may not lead to the anticipated cost
savings.
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.
We may not be able to compete effectively with current or future competitors. The markets for our products and services
are intensely competitive and subject to constant technological change. We expect this competition to further intensify in
the future. Competitive factors include price, availability, service and support. We compete with a wide variety of other
resellers and retailers, including internet marketers, as well as manufacturers. Many of our competitors are larger
companies with greater financial, marketing and product development resources than ours. The market for the sale of
industrial products in North America is highly fragmented and is characterized by multiple distribution channels such as