Ingram Micro 2008 Annual Report Download - page 22

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ITEM 1A. RISK FACTORS
CAUTIONARY STATEMENTS FOR PURPOSES OF THE “SAFE
HARBOR” PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a “safe harbor” for “forward-
looking statements” to encourage companies to provide prospective information, so long as such information is
identified as forward-looking and is accompanied by meaningful cautionary statements identifying important
factors that could cause actual results to differ materially from those discussed in the forward-looking statement(s).
Ingram Micro desires to take advantage of the safe harbor provisions of the Act.
Our periodic and current reports filed with the Securities and Exchange Commission, periodic press releases,
and other public documents and statements, may contain forward-looking statements within the meaning of the Act,
including, but not limited to, management’s expectations for process improvement; competition; revenues,
expenses and other operating results or ratios; contingencies and litigation; economic conditions; liquidity; capital
requirements; and exchange rate fluctuations. Forward-looking statements also include any statement that may
predict, forecast, indicate or imply future results, performance, or achievements. Forward-looking statements can
be identified by the use of terminology such as “believe,” “anticipate,” “expect,” “estimate,” “may,” “will,”
“should,” “project,” “continue,” “plans,” “aims,” “intends,” “likely,” or other similar words or phrases.
We disclaim any duty to update any forward-looking statements. In addition, our representatives participate
from time to time in:
• speeches and calls with market analysts;
• conferences, meetings and calls with investors and potential investors in our securities; and
• other meetings and conferences.
Some of the information presented in these calls, meetings and conferences may be forward-looking within the
meaning of the Act.
Our actual results could differ materially from those projected in forward-looking statements made by or on
behalf of Ingram Micro. In this regard, from time to time, we have failed to meet consensus analysts’ estimates of
revenue or earnings. In future quarters, our operating results may differ significantly from the expectations of public
market analysts or investors or those projected in forward-looking statements made by or on behalf of Ingram Micro
due to unanticipated events, including, but not limited to, those discussed in this section. Because of our narrow
gross margins, the impact of the risk factors stated below may magnify the impact on our operating results and/or
financial condition.
Difficult conditions in the global economy in general have affected our business and results of operations
and these conditions are not expected to improve in the near future and may worsen. A prolonged worldwide
economic downturn may further intensify competition, regionally and internationally, which may lead to lower
sales or reduced sales growth, loss of market share, reduced prices, lower gross margins, loss of vendor rebates,
extended payment terms with customers, increased bad debt risks, shorter payment terms with vendors, reduced
access to liquidity and higher interest costs, increased currency volatility making hedging more expensive and more
difficult to obtain, increased inventory losses related to obsolescence and/or excess quantities, all of which could
adversely affect our results of operations, financial condition and cash flows. Our results of operations have been
affected to varying degrees by the factors noted above resulting from the difficult conditions in the global economy
in general. If the current economic downturn continues or intensifies, our results could be more adversely affected.
Furthermore, the IT products industry is subject to rapid technological change, new and enhanced product
specification requirements and evolving industry standards, which can further cause inventory in stock to decline
substantially in value or to become obsolete, regardless of the general economic environment. It is the policy of
many suppliers of IT products to offer distributors like us, who purchase directly from them, limited protection from
the loss in value of inventory due to technological change or such suppliers’ price reductions. If major suppliers
decrease the availability of price protection to us, such a change in policy could lower our grossmargins on products
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