1055454--6/25/2008--SCHOOL_SPECIALTY_INC

related topics
{customer, product, revenue}
{acquisition, growth, future}
{system, service, information}
{competitive, industry, competition}
{operation, international, foreign}
{regulation, government, change}
{personnel, key, retain}
{tax, income, asset}
{debt, indebtedness, cash}
{property, intellectual, protect}
{cost, regulation, environmental}
Our business depends upon the growth of the student population and school expenditures and can be adversely impacted by fixed school budgets. Increased costs associated with the distribution of our products would adversely affect our results of operations. Our business is highly seasonal. If our key suppliers or service providers were unable to provide the products and services we require, our business could be adversely affected. Our business is highly competitive. If any of our key personnel discontinue their role with us, our business could be adversely affected. A failure to successfully implement our business strategy could materially and adversely affect our operations and growth opportunities. We face risks associated with our increasing emphasis on imported goods and private label products. Currency exchange rates may impact our financial condition and results of operations and may affect the comparability of our results between financial periods. It is difficult to forecast our revenue stream given the seasonal purchasing patterns of our customers. If we are unable to successfully identify and integrate acquisitions, our results of operations could be adversely affected. We have a material amount of goodwill, other intangible assets and capitalized product development costs which might be written-down. Our operations are dependent on our information systems. We rely on our intellectual property in the design and marketing of our products. The agreements governing our debt contain various covenants that limit our discretion in the operation of our business, could prohibit us from engaging in transactions we believe to be beneficial and could lead to the acceleration of our debt.

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