Ingram Micro Confirms Second-Quarter Guidance in Advance of Upcoming Investor Events
June 04 2008 - 8:00AM
PR Newswire (US)
SANTA ANA, Calif., June 4 /PRNewswire-FirstCall/ -- Ingram Micro
Inc. (NYSE:IM), the world's largest technology distributor,
reaffirmed its guidance for the second quarter ending June 28,
2008, in advance of its shareholders' meeting at 10:00 a.m. Pacific
time today. As announced on April 24, 2008, the company expects
sales to range from $8.50 billion to $8.75 billion, with net income
ranging from $59 to $64 million or $0.34 to $0.37 per diluted share
based on 172 million shares outstanding and an effective tax rate
of 28 percent. Net income and earnings guidance exclude costs
related to the expense-reduction plans in the North America and
Europe, Middle East and Africa (EMEA) regions. The company also
updated information on its share repurchase program, stating that
it had spent approximately $155 million of its $300 million
repurchase authorization as of May 30, 2008. "Despite the
challenges of the marketplace, we remain comfortable with the
second-quarter guidance we provided in April," said Greg Spierkel,
chief executive officer, Ingram Micro Inc. "While ongoing economic
softness in North America and Europe created pockets of more
competitive pricing in those regions, we remain firmly committed to
enhancing our gross margin profile over time. We employ a surgical
pricing strategy, capturing share through lower pricing only when
it makes strategic sense, as we are not interested in pursuing
sales that do not contribute to profitability and returns. Our
margins are also supported by geographic diversification and growth
initiatives, which serve us well in the current economic
environment." The company will also be meeting with investors later
in the month at the following investor event: -- Wednesday, June
11, 2008 Global Technology Distribution Council 2008 Investor
Relations Conference Wyndham Grand London Chelsea Harbour -- London
Attendees: Gregory M. Spierkel, CEO Alain Monie, president and COO
Further information about this conference may be found on the
Global Technology Distribution Council website:
http://www.gtdc.org/. 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 or disruptions due to changes to our
information systems or subversion of access or other system
controls may result in a significant loss of business, assets, or
competitive information and may adversely impact our results of
operations; (7) if there is a downturn in economic conditions for
an extended period of time, it will likely have an adverse impact
on our business; (8) 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; (9) termination of a supply or
services agreement with a major supplier or product supply
shortages may adversely impact our results of operations; (10)
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; (11) we cannot predict with
certainty, the outcome of the SEC and U.S. Attorney's inquiries or
assessments by Brazilian taxing authorities; (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 29,
2007; 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 more than 150
countries and is the only global broad-based IT distributor with
operations in Asia. Visit http://www.ingrammicro.com/. 2008 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: Investors, Ria Marie
Carlson +1-714-382-4400, , or Kay Leyba +1-714-382-4175, , or
Media, Marie Connell, +1-714-382-2009, , or Rekha Parthasarathy,
+1-714-382-1319, , all of Ingram Micro Inc. Web site:
http://www.ingrammicro.com/
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