Ingram Micro Reaffirms Second-Quarter Guidance in Advance of Investor Conference
June 08 2006 - 5:00PM
PR Newswire (US)
SANTA ANA, Calif., June 8 /PRNewswire-FirstCall/ -- Ingram Micro
Inc. (NYSE:IM), the world's largest technology distributor, today
reaffirmed guidance for the second quarter of 2006, which ends July
1, 2006. As originally reported on April 25, 2006, sales are
expected to range from $7.15 billion to $7.35 billion, with net
income ranging from $49 to $56 million or $0.29 to $0.33 per
diluted share based on 170 million weighted average shares
outstanding and an effective tax rate of 28 percent. Net income
estimates include pre-tax expenses of approximately $8.0 million
($0.03 per diluted share) for the effect of non-cash stock-based
compensation, as well as approximately $5.0 million ($0.02 per
diluted share) for incremental investments in information
technology capabilities. These expenses were not included in the
results for the year-ago quarter. "Demand is generally stable
throughout the world," said Gregory M. Spierkel, chief executive
officer, Ingram Micro Inc. "As expected, we are experiencing margin
pressure from a more competitive environment, especially in Europe,
but we are managing through it well. We believe that the conclusion
of recent vendor consolidation efforts in the region should create
a more balanced distribution environment over time." Spierkel
added: "We are making investments in our IT capabilities, including
transferring nearly 100 application development positions to an
outsourced provider. We believe these actions will improve our
business over the long-term. We are committed to making
enhancements that leverage our leadership position and make us a
stronger competitor." The company's reaffirmation of guidance is in
advance of the following investor event: * Tuesday, June 13, 2006
Bear Stearns 17th Annual Technology Conference Grand Hyatt New York
- New York, NY 10:00 a.m. ET (7:00 a.m. PT) Presenter: William D.
Humes, executive vice president and chief financial officer To
access the live audio webcasts of this presentation, visit the
Investor Relations page of http://www.ingrammicro.com/. The
archived versions will be available for approximately one week
following the events. Cautionary Statement for the Purpose of the
Safe Harbor Provisions of the Private Securities Litigation Reform
Act of 1995 The matters in this press release that are
forward-looking statements, including but not limited to statements
about future revenues, sales levels, operating income, margins,
stock-based compensation expense, integration costs, cost
synergies, operating efficiencies, profitability, market share and
rates of return, are based on current management expectations that
involve certain risks which, if realized, in whole or in part,
could cause such expectations to fail to be achieved and have a
material adverse effect on Ingram Micro's business, financial
condition and results of operations, including, without limitation:
(1) intense competition, regionally and internationally, including
competition from alternative business models, such as
manufacturer-to-end-user selling, which may lead to reduced prices,
lower sales or reduced sales growth, lower gross margins, extended
payment terms with customers, increased capital investment and
interest costs, bad debt risks and product supply shortages; (2)
integration of our acquired businesses and similar transactions
involve various risks and difficulties -- our operations may be
adversely impacted by an acquisition that (i) is not suited for us,
(ii) is improperly executed, or (iii) substantially increases our
debt; (3) foreign exchange rate fluctuations, devaluation of a
foreign currency, adverse governmental controls or actions,
political or economic instability, or disruption of a foreign
market, and other related risks of our international operations may
adversely impact our operations in that country or globally; (4) we
may not achieve the objectives of our process improvement efforts
or be able to adequately adjust our cost structure in a timely
fashion to remain competitive, which may cause our profitability to
suffer; (5) our failure to attract new sources of profitable
business from expansion of products or services or risks associated
with entry into new markets, including geographies, products and
services, could negatively impact our future operating results; (6)
an interruption or failure of our information systems or subversion
of access or other system controls may result in a significant loss
of business, assets, or competitive information; (7) significant
changes in supplier terms, such as higher thresholds on sales
volume before distributors may qualify for discounts and/or
rebates, the overall reduction in the amount of incentives
available, reduction or termination of price protection, return
levels, or other inventory management programs, or reductions in
payment terms, may adversely impact our results of operations or
financial condition; (8) termination of a supply or services
agreement with a major supplier or product supply shortages may
adversely impact our results of operations; (9) changes in, or
interpretations of, tax rules and regulations may adversely affect
our effective tax rates or we may be required to pay additional tax
assessments; (10) we cannot predict with certainty, the outcome of
the SEC and U.S. Attorney's inquiries; (11) if there is a downturn
in economic conditions for an extended period of time, it will
likely have an adverse impact on our business; (12) we may
experience loss of business from one or more significant customers,
and an increased risk of credit loss as a result of reseller
customers' businesses being negatively impacted by dramatic changes
in the information technology products and services industry as
well as intense competition among resellers -- increased losses, if
any, may not be covered by credit insurance or we may not be able
to obtain credit insurance at reasonable rates or at all; (13)
rapid product improvement and technological change resulting in
inventory obsolescence or changes in demand may result in a decline
in value of a portion of our inventory; (14) future terrorist or
military actions could result in disruption to our operations or
loss of assets, in certain markets or globally; (15) the loss of a
key executive officer or other key employees, or changes affecting
the work force such as government regulations, collective
bargaining agreements or the limited availability of qualified
personnel, could disrupt operations or increase our cost structure;
(16) changes in our credit rating or other market factors may
increase our interest expense or other costs of capital, or capital
may not be available to us on acceptable terms to fund our working
capital needs; (17) our failure to adequately adapt to industry
changes and to manage potential growth and/or contractions could
negatively impact our future operating results; (18) future
periodic assessments required by current or new accounting
standards such as those relating to long-lived assets, goodwill and
other intangible assets and expensing of stock options may result
in additional non-cash charges; (19) seasonal variations in the
demand for products and services, as well as the introduction of
new products, may cause variations in our quarterly results; and
(20) the failure of certain shipping companies to deliver product
to us, or from us to our customers, may adversely impact our
results of operations. Ingram Micro has instituted in the past and
continues to institute changes to its strategies, operations and
processes to address these risk factors and to mitigate their
impact on Ingram Micro's results of operations and financial
condition. However, no assurances can be given that Ingram Micro
will be successful in these efforts. For a further discussion of
significant factors to consider in connection with forward-looking
statements concerning Ingram Micro, reference is made to Item 1A
Risk Factors of Ingram Micro's Annual Report on Form 10-K for the
year ended December 31, 2005; other risks or uncertainties may be
detailed from time to time in Ingram Micro's future SEC filings.
Ingram Micro disclaims any duty to update any forward-looking
statements. About Ingram Micro Inc. As a vital link in the
technology value chain, Ingram Micro creates sales and
profitability opportunities for vendors and resellers through
unique marketing programs, outsourced logistics services, technical
support, financial services, and product aggregation and
distribution. The company serves 100 countries and is the only
global broadline IT distributor with operations in Asia. Visit
http://www.ingrammicro.com/. (C)2006 Ingram Micro Inc. All rights
reserved. Ingram Micro and the registered Ingram Micro logo are
trademarks used under license by Ingram Micro Inc. DATASOURCE:
Ingram Micro Inc. CONTACT: Media, Chris Kelly, +1-714-382-3355, ,
or Investors, Ria Marie Carlson, +1-714-382-4400, , or Kay Leyba
+1-714-382-4175, , all of Ingram Micro Inc. Web site:
http://www.ingrammicro.com/
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