8858--8/29/2007--AVNET

related topics

{condition, economic, financial}

{capital, credit, financial}

{customer, product, revenue}

{debt, indebtedness, cash}

{control, financial, internal}

{operation, international, foreign}

{product, market, service}

An industry down-cycle in semiconductors could significantly affect the Company s operating results as a large portion of our revenues comes from sales of semiconductors, which has been a highly cyclical industry. Failure to maintain its relationships with key suppliers could adversely affect the Company s sales. The Company may not have adequate or cost-effective liquidity or capital resources. The agreements governing some of the Company s financings contain various covenants and restrictions that limit the discretion of management in operating its business and could prevent us from engaging in some activities that may be beneficial to the Company s business. Declines in the value of the Company s inventory or unexpected order cancellations by the Company s customers could materially, adversely affect its business, results of operations, financial condition or liquidity. Substantial defaults by the Company s customers on its accounts receivable or the loss of significant customers could have a significant negative impact on the Company s business, results of operations, financial condition or liquidity. The electronics component and computer industries are highly competitive and if the Company cannot effectively compete, its revenues may decline. The Company s non-U.S. locations represent a significant and growing portion of its revenue, and consequently, the Company is increasingly exposed to risks associated with operating internationally. If the Company fails to maintain effective internal controls, it may not be able to report its financial results accurately or timely or detect fraud, which could have a material adverse effect on the Company s business or stock price.

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8858--8/29/2007--AVNET_INC