932696--2/25/2010--INSIGHT_ENTERPRISES

related topics

{operation, international, foreign}

{system, service, information}

{property, intellectual, protect}

{product, market, service}

{provision, law, control}

{condition, economic, financial}

{financial, litigation, operation}

{personnel, key, retain}

{regulation, government, change}

{acquisition, growth, future}

{regulation, change, law}

{capital, credit, financial}

General economic conditions, including concerns regarding our ability to collect our accounts receivable and credit constraints, or unfavorable economic conditions in a particular region, business or industry sector, may lead our clients to delay or forgo investments in IT hardware, software and services, either of which could adversely affect our business, financial condition, operating results and cash flow. Disruptions in our IT systems and voice and data networks, including the system upgrade and the migration of acquired businesses to our IT systems and voice and data networks, could affect our ability to service our clients and cause us to incur additional expenses. The IT hardware, software and services industry is intensely competitive, and actions of our competitors, including manufacturers and publishers of products we sell, can negatively affect our business. We are subject to stockholder litigation and regulatory proceedings related to the restatement of our consolidated financial statements. We have outstanding debt and may need to refinance that debt and/or incur additional debt in the future, and general economic conditions and continued volatility in the credit markets could limit our ability to obtain such financing or could increase the cost of financing. The integration and operation of acquired businesses may disrupt our business and create additional expenses, and we may not achieve the anticipated benefits of the acquisitions. Our net sales and gross profit have historically varied and include some seasonality, making our future operating results less predictable. There are risks associated with our international operations that are different than the risks associated with our operations in the U.S., and our exposure to the risks of a global market could hinder our ability to maintain and expand international operations. Changes in, or interpretations of, tax rules and regulations may adversely affect our effective income tax rates or operating margins and we may be required to pay additional tax assessments. International operations expose us to currency exchange risk and we cannot predict the effect of future exchange rate fluctuations or the volatility of the U.S. dollar exchange rate on our business and operating results. The failure to comply with the terms and conditions of our public sector contracts could result in, among other things, fines or other liabilities. We depend on certain key personnel. We may not be able to protect our intellectual property adequately, and we may be subject to intellectual property infringement claims. Some anti-takeover provisions contained in our certificate of incorporation, bylaws and stockholders rights agreement, as well as provisions of Delaware law and executive employment contracts, could impair a takeover attempt.

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932696--2/25/2010--INSIGHT_ENTERPRISES_INC