898293--10/21/2010--JABIL_CIRCUIT

related topics

{product, market, service}

{property, intellectual, protect}

{cost, regulation, environmental}

{customer, product, revenue}

{operation, international, foreign}

{capital, credit, financial}

{system, service, information}

{control, financial, internal}

{regulation, change, law}

{cost, operation, labor}

{provision, law, control}

{stock, price, operating}

{cost, contract, operation}

{operation, natural, condition}

{condition, economic, financial}

{personnel, key, retain}

{product, liability, claim}

{debt, indebtedness, cash}

Because we depend on a limited number of customers, a reduction in sales to any one of our customers could cause a significant decline in our revenue. Consolidation in industries that utilize electronics components may adversely affect our business. Our customers face numerous competitive challenges, such as decreasing demand from their customers, rapid technological change and short life cycles for their products, which may materially adversely affect their business, and also ours. The success of our business is dependent on both our ability to independently keep pace with technological changes and competitive conditions in our industry, and also our ability to effectively adapt our services in response to our customers keeping pace with technological changes and competitive conditions in their respective industries. Most of our customers do not commit to long-term production schedules, which makes it difficult for us to schedule production and capital expenditures, and to maximize the efficiency of our manufacturing capacity. Our customers may cancel their orders, change production quantities, delay production or change their sourcing strategy. We depend on a limited number of suppliers for components that are critical to our manufacturing processes. A shortage of these components or an increase in their price could interrupt our operations and reduce our profits, increase our inventory carrying costs, increase our risk of exposure to inventory obsolescence and cause us to purchase components of a lesser quality. Introducing programs requiring implementation of new competencies, including new process technology within our mechanical operations, could affect our operations and financial results. Customer relationships with emerging companies may present more risks than with established companies. We compete with numerous other electronic manufacturing services and design providers and others, including our current and potential customers who may decide to manufacture some or all of their products internally. The economies of the U.S., Europe and certain countries in Asia are, or have recently been, in a recession. The financial markets have recently experienced significant turmoil, which may adversely affect financial arrangements we may need to enter into, refinance or repay. Our business could be adversely affected by any delays, or increased costs, resulting from issues that our common carriers are dealing with in transporting our materials, our products, or both. We derive a majority of our revenue from our international operations, which may be subject to a number of risks and often require more management time and expense to achieve profitability than our domestic operations. If we do not manage our growth effectively, our profitability could decline. We have on occasion not achieved, and may not in the future achieve, expected profitability from our acquisitions. We face risks arising from the restructuring of our operations. We may not be able to maintain our engineering, technological and manufacturing process expertise. If our manufacturing processes and services do not comply with applicable statutory and regulatory requirements, or if we manufacture products containing design or manufacturing defects, demand for our services may decline and we may be subject to liability claims. Our regular manufacturing processes and services may result in exposure to intellectual property infringement and other claims. Our design services offerings may result in additional exposure to product liability, intellectual property infringement and other claims, in addition to the business risk of being unable to produce the revenues necessary to profit from these services. The success of our turnkey solution activities depends in part on our ability to obtain, protect and leverage intellectual property rights to our designs. Intellectual property infringement claims against our customers, our suppliers or us could harm our business. We depend on our officers, managers and skilled personnel. Any delay in the implementation of our information systems could disrupt our operations and cause unanticipated increases in our costs. Compliance or the failure to comply with current and future environmental, product stewardship and producer responsibility laws or regulations could cause us significant expense. We are subject to the risk of increased taxes. Our credit rating may be downgraded. Our amount of debt could significantly increase in the future. We are subject to risks of currency fluctuations and related hedging operations. An adverse change in the interest rates for our borrowings could adversely affect our financial condition. We face certain risks in collecting our trade accounts receivable. Certain of our existing stockholders have significant control. Our stock price may be volatile. Provisions in our charter documents and state law may make it harder for others to obtain control of us even though some shareholders might consider such a development to be favorable. Changes in the securities laws and regulations have increased, and may continue to increase, our costs; and any future changes would likely increase our costs. Due to inherent limitations, there can be no assurance that our system of disclosure and internal controls and procedures will be successful in preventing all errors or fraud, or in informing management of all material information in a timely manner. If we receive other than an unqualified opinion on the adequacy of our internal control over financial reporting as of August 31, 2011 or any future year-ends, investors could lose confidence in the reliability of our financial statements, which could result in a decrease in the value of your shares. There are inherent uncertainties involved in estimates, judgments and assumptions used in the preparation of financial statements in accordance with U.S. generally accepted accounting principles ( U.S. GAAP ). Any changes in U.S. GAAP or in estimates, judgments and assumptions could have a material adverse effect on our business, financial position and results of operations. We are subject to risks associated with natural disasters and global events. Energy price increases may negatively impact our results of operations.

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898293--10/21/2010--JABIL_CIRCUIT_INC