96289--2/27/2007--RADIOSHACK

related topics

{product, market, service}

{customer, product, revenue}

{operation, natural, condition}

{system, service, information}

{loss, insurance, financial}

{condition, economic, financial}

{operation, international, foreign}

{competitive, industry, competition}

{personnel, key, retain}

{regulation, change, law}

We may be unable to successfully execute our strategy to provide cost-effective solutions to meet the routine electronics needs and distinct electronics wants of our customers. Our inability to increase or maintain profitability in both our wireless and non-wireless platforms could adversely affect our results. Any reductions or changes in the growth rate of the wireless industry or changes in the dynamics of the wireless communications industry could cause a material adverse effect on our gross profits and financial results. We may not be able to maintain our historical gross margin levels. Our competition is both intense and varied, and our failure to effectively compete could adversely affect our financial results. Adverse changes in national or regional U.S. economic conditions could negatively affect our financial results. Our inability to effectively manage our inventory levels, particularly excess or inadequate amounts of inventory, could adversely affect our financial results. Our inability to attract, retain and grow an effective management team or changes in the cost or availability of a suitable workforce to manage and support our operating strategies could cause our operating results to suffer. Our inability to successfully identify and enter into relationships with developers of new technologies or the failure of these new technologies to be adopted by the market could impact our ability to increase or maintain our sales and profitability. Additionally, the absence of new services or products and product features in the merchandise categories we sell could adversely affect our sales and profitability. Failure to enter into, maintain and renew profitable relationships with providers of third-party branded products could adversely affect our sales and gross margins. The occurrence of severe weather events or natural disasters could significantly damage or destroy outlets or prohibit consumers from traveling to our retail locations, especially during the peak winter holiday shopping season. We have contingent lease obligations related to our discontinued retail operations that, if realized, could materially and adversely affect our financial results. Failure to comply with, or the additional implementation of, restrictions or regulations regarding the products and/or services we sell or changes in tax rules and regulations applicable to us, could adversely affect our business and our results of operations. Any potential tariffs imposed on products that we import from China, as well as any significant strengthening of China s currency against the U.S. dollar, could reduce our gross margins and our overall profitability. Failure to protect the integrity and security of our customers information could expose us to litigation, as well as materially damage our standing with our customers. Any terrorist activities in the U.S., as well as the international war on terror, could adversely affect our results of operations.

Full 10-K form ▸

96289--2/27/2007--RADIOSHACK_CORP