Ingram Micro 2011 Annual Report Download - page 23

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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. In addition, our
representatives may participate 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 also be forward-looking. We disclaim any duty to update
any forward-looking statements, whether as a result of new information, future events or otherwise.
Described below and throughout this report are certain risks that could affect our business, financial results
and results of operations. These risk factors should be considered in connection with evaluating your investment
in our company because these factors could cause our actual results and conditions to differ materially from our
historical performance or those projected in our forward-looking statements. Before you invest in our company,
you should know that making such an investment involves risks, including the risks described below. The risks
that have been highlighted here are not the only ones that we face. There may be additional risks that are not
presently material or known. If any of the risks actually occur, our business, financial condition or results of
operations could be negatively affected. In that case, the trading price of our common stock could decline, and
you may lose all or part of your investment.
RISK FACTORS
Changes in macroeconomic conditions can affect our business and results of operations. Our revenues,
profitability, financial position and cash flows, are highly dependent on the broader movements of the
macroeconomic environment. For example, our results of operations have been and continue to be adversely
affected by the difficult conditions experienced in the global economy in recent periods. Economic weakness and
uncertainty, including the ongoing macroeconomic challenges in many countries globally and the debt crisis in
certain countries in the European Union, have resulted, and may result in the future, in decreased revenue,
margins and earnings; difficulty managing inventory levels and collecting customer receivables; decreased
availability of trade credit from suppliers or decreased capital availability through debt and similar financing
from external parties. In addition, sustained uncertainty about current global economic conditions, continued
negative economic trends or instability, or another recession, may negatively impact our business, leading to:
• reduced demand for products in general;
• more intense competition, which may lead to loss of sales and/or market share, reduced prices, and lower
gross margins;
• loss of vendor rebates;
• extended payment terms with customers;
• increased bad debt risks;
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