Sector: Information Technology | Focus: Technology Distributors
HQ: Vernon Hills, Illinois
Financial Risks
Economic uncertainty, impacting customer spending on IT. Fluctuations in government, healthcare, and education spending. Changes in technology trends and customer purchasing behaviors. Risks related to accounts receivable and inventory. Exposure to legal proceedings, including a False Claims Act investigation. Potential losses from customer bankruptcies. Changes in laws and regulations, and potential failure to meet stakeholder expectations. Debt levels and covenants, including potential rating agency downgrades. Share repurchase program or dividend payment discontinuation.
Financial Upside
Increased interest income from higher average cash balances. Lower performance-based compensation, potentially leading to lower selling and administrative expenses. Issuance of new debt, potentially providing funding for acquisitions or share repurchases. Redemption of outstanding debt, potentially reducing interest expense. Continued growth in UK and Canadian operations. Potential for increased netted-down revenue, particularly in software as a service.
