Item 1A. Risk Factors
Item 1A.
Risk Factors
Our risk factors are disclosed in “Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2021. Updates to our risk factors due to recent events are provided below.
Supply chain issues, including a shortage of IT products, may increase our costs or cause a delay in fulfilling orders, resulting in an adverse impact on our financial results.
We depend upon the supply of products available from our vendors to fulfill orders from our customers on a timely basis. At present, there is a worldwide shortage of certain IT products resulting from shortages in semiconductors and other components of those products. Like others, we are experiencing ongoing supply constraints that have affected, and could continue to further affect, lead times for delivery of products, the costs of products, and our ability to meet customer demands. As a result of longer lead times, some sales to customers have been deferred. We believe extended lead times will likely persist for at least the next few quarters. If we are unable to mitigate these disruptions, our financial results may be adversely impacted. As a result of the worldwide shortage of certain IT products, we have experienced some increases in prices from our suppliers. Additionally, we have experienced an increase in wages. If we are unable to pass along these prices increases to customers, our financial results may be adversely impacted. We provide certain professional and managed services under fixed price contracts. If we fail to accurately estimate our costs, including due to inflation, the profitability of our contracts may be adversely affected.
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