932696--2/27/2008--INSIGHT_ENTERPRISES

related topics

{product, market, service}

{operation, international, foreign}

{stock, price, share}

{customer, product, revenue}

{condition, economic, financial}

{system, service, information}

{property, intellectual, protect}

{tax, income, asset}

{provision, law, control}

{financial, litigation, operation}

{personnel, key, retain}

{regulation, government, change}

{acquisition, growth, future}

We rely on our partners for product availability, marketing funds, purchasing incentives and competitive products to sell. Disruptions in our IT systems and voice and data networks, including the upgrade to mySAP 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 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. 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 have received an informal inquiry from the SEC and could be subject to stockholder litigation and other regulatory proceedings related to the Options Subcommittee s investigation of our historical stock option granting practices and the related restatement of our consolidated financial statements. 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. Sales of software licenses are subject to seasonal changes in demand and resulting sales activities. Our acquisitions of businesses increase our outstanding debt and interest expense and lower the availability on our financing facilities. Additionally, there have been negative changes in the overall capital markets due to current economic factors in the lending industry. 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. We depend on certain key personnel. If purchased goodwill or amortizable intangible assets become impaired, we may be required to record a significant charge to earnings. The failure to comply with the terms and conditions of our public sector contracts could result in, among other things, fines or other liabilities. Rapid changes in product standards may result in substantial inventory obsolescence. We may not be able to protect our intellectual property adequately, and we may be subject to intellectual property infringement claims. We issue equity-based awards, such as restricted stock units, under our long-term incentive plans, and these issuances dilute the interests of stockholders. 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. Sales of additional common stock and securities convertible into our common stock may dilute the voting power of current holders.

Full 10-K form ▸

932696--2/27/2008--INSIGHT_ENTERPRISES_INC