CompUSA 2015 Annual Report Download - page 5

Table of Contents
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 or estimates of revenue, income or loss, exit costs, cash flow needs and capital expenditures, statements regarding
future operations, expansion or restructuring plans, including our exit from and winding down of our North American Technology operations, financing needs,
compliance with financial covenants in loan agreements, the implementation and performance of technology systems discussed below, the turnaround plans for our
UK operations, including the performance of our shared services center in Hungary, plans for acquisition or sale of assets or businesses, consolidation and
integration of operations of recently acquired businesses, including SCC/Misco Solutions in the Netherlands and the Plant Equipment Group in the US, 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,” “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ourproductsandservices
·ourabilitytotimelyandefficientlyexitandwinddownthediscontinuedNorthAmericanTechnologyProductsoperations
·ourabilitytotimelyandefficientlyintegraterecentlyacquiredbusinesses,suchasSCC/MiscoSolutionsintheNetherlandsandthePlantEquipment
GroupintheUS
·ourinformationsystems and other technology platforms supportingour sales,procurement andother operationsarecritical to our operations and
disruptionsordelays,particularlyaswecontinuetotransitioncertainfunctionsfromourexistingplatformstoanewplatformspecificallydeveloped
forourneeds,haveoccurredandcouldoccurinthefuture,andifnottimelyaddressedwouldhaveamaterialadverseeffectonus
·generaleconomicconditions,suchasdecreasedconsumerconfidenceandspendingandreductionsinmanufacturingcapacityhavecontributedtoour
recentfailuretoachieveourhistoricalsalesgrowthratesandprofitlevelsandcouldcontinuetoimpactourbusiness
·technologicalchange,suchastheeffectofmobiledevicesonsalesofPCsandlaptopcomputers,havehadandcancontinuetohaveamaterialeffect
onourproductmixandresultsofoperations
·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
·ourecommerceoperationsmustcompetewithlarge,expandingecommerceretailers
·salestaxlawsorgovernmentenforcementprioritiesmaybechangedwhichcouldresultinecommerceanddirectmailretailershavingtocollectsales
taxesinstateswherethecurrentlawsandinterpretationsdonotrequireustodoso
·our substantial international operations are subject to risks such as fluctuations in currency rates, foreign regulatory requirements, political
uncertaintyandthemanagementofourexpandinginternationaloperationsinfrastructure,includingourabilitytotimelyandeffectivelyoperateour
sharedservicescenterinHungary
·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

3