Ingram Micro Reaffirms Fourth-Quarter Guidance in Advance of Investor Conferences
November 29 2006 - 6:16PM
PR Newswire (US)
SANTA ANA, Calif., Nov. 29 /PRNewswire-FirstCall/ -- Ingram Micro
Inc. (NYSE:IM), the world's largest technology distributor, today
reaffirmed its guidance for the fourth-quarter ending Dec. 30,
2006, in advance of executive presentations at upcoming investor
conferences in December. As originally reported on Oct. 24, 2006,
sales are expected to range from $8.40 billion to $8.65 billion,
with net income ranging from $85 to $92 million or $0.50 to $0.54
per diluted share based on 171 million weighted average shares
outstanding and an effective tax rate of 28 percent. Net income
estimates include pre-tax expenses of approximately $6.5 million
($0.03 per diluted share) for the effect of non-cash stock-based
compensation, as well as approximately $2.5 million ($0.01 per
diluted share) for incremental investments in information
technology capabilities. These expenses were not included in the
results for the year-ago quarter. "We expect to reach record sales
this quarter, based on our guidance," said Gregory M. Spierkel,
chief executive officer. "Our expected year-over-year sales growth
of 6 to 9 percent exceeds third-party reports of overall IT
spending trends. Demand remains stable and our regions continue to
perform well." The company's reaffirmation of guidance is in
advance of the following investor events: * Friday, December 1,
2006 Credit Suisse Technology Conference Phoenician Hotel -
Scottsdale, AZ 9:00 a.m. MT (11:00 a.m. ET) Presenter: William D.
Humes, executive vice president and chief financial officer *
Wednesday, December 6, 2006 Lehman Brothers 2006 Global Technology
Conference The Fairmont Hotel - San Francisco, CA 3:00 p.m. PT
(6:00 p.m. ET) Presenter: Kevin M. Murai, president & chief
operating officer * Wednesday, December 13, 2006 Raymond James 2006
IT Supply Chain Investor Conference InterContinental the Barclay -
New York 10:10 a.m. ET Presenters: Gregory M. Spierkel, chief
executive officer William D. Humes, executive vice president and
chief financial officer To access the live audio webcasts of the
presentations, visit the Investor Relations page of
http://www.ingrammicro.com/. The archived version will be available
for approximately one week following the event. 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 140 countries and is the only
global broadline IT distributor with operations in Asia. Visit
http://www.ingrammicro.com/. 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, Jim Trainor, +1-714-382-2378, ;
or 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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