8 unchanged sentences
People - If we cannot continue to hire and retain high quality employees, our business and financial results may be negatively affected.
−Removed: Our operating results could be adversely affected by increased competition for employees, difficulty in recruiting employees, higher employee turnover or increased compensation and benefit costs.
+Added: Our operating results could be adversely affected by increased competition for employees, difficulty in recruiting employees, higher voluntary employee turnover or increased compensation and benefit costs.
Our employees are important to our success and we are dependent in part on our ability to retain the services of our employees in key roles.
We have built our business on a set of core values, and we attempt to hire and retain employees who are committed to these values and our culture of providing exceptional service to our channel sales partners and suppliers.
−Removed: In order to compete and to continue to grow, we must attract, retain and motivate employees, including those in executive, senior management, sales, marketing, logistics, technical support and other operating positions.
+Added: In order to compete and to continue to grow, we must attract, retain and motivate employees, including those in executive, senior management, sales, merchandising, marketing, logistics, technical support and other operating positions.
Many of our employees work in small teams to provide specific services to channel sales partners and suppliers.
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Our personnel, systems, procedures and controls may not be adequate to effectively manage our future operations, especially as we employ personnel in multiple domestic and some international locations.
−Removed: We may not be able to hire, train, retain and
−Removed: Index to Financial Statements
−Removed: manage the personnel required to address our growth.
+Added: We may not be able to hire, train, retain and manage the personnel required to address our growth.
Failure to effectively manage our acquisition opportunities could damage our reputation, limit our future growth, and adversely affect our business, financial condition and operating results.
1 unchanged sentence
Even if we do, we may be unable to successfully complete any such transactions on favorable terms or at all, or to successfully integrate an acquired business, facilities, technologies, or products into our business or retain any key personnel, suppliers, or channel sales partners.
−Removed: Furthermore, even if we complete such transactions and effectively integrate the newly acquired business or strategic alliance into our existing operations, we may fail to realize the anticipated returns and/or fail to capture the expected benefits, such as strategic or operational synergies or cost savings.
−Removed: Organic growth strategies - If we fail to effectively manage and implement our operating strategies, we may experience a negative effect on our business and financial results.
−Removed: A significant component of our growth strategy is to expand our channels and expand our existing products and services in our existing channels and entry into new channels.
−Removed: These efforts may divert our resources and systems, require additional resources that might not be available (or available on acceptable terms), result in new or more intense competition, require longer implementation times or greater expenditures than anticipated and otherwise fail to achieve timely desired results, if at all.
−Removed: If we are unable to increase our sales and earnings by expanding our product and service offerings in a cost-effective manner, our results may suffer.
−Removed: Our ability to successfully manage our organic growth will require continued enhancement of our operational, managerial and financial resources, controls, and models.
−Removed: Our failure to effectively manage our organic growth could have an adverse effect on our business, financial condition and results of operations.
+Added: Furthermore, even if we complete such transactions and effectively integrate the newly acquired business or strategic alliance
+Added: Index to Financial Statements
+Added: into our existing operations, we may fail to realize the anticipated returns and/or fail to capture the expected benefits, such as strategic or operational synergies or cost savings.
IT systems - Our ability to manage our business and monitor results is highly dependent upon information and communication systems.
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Any significant failure or disruption of these systems could prevent us from making sales, ordering and delivering products and otherwise conducting our business.
−Removed: Supply Chain issues, include a shortage of products, may increase our costs or cause a delay in fulfilling channel sales partner orders, completing services or purchasing products and services needed to support our internal operations, resulting in an adverse impact on our financial results.
+Added: We are currently evaluating the development and use of artificial intelligence (“AI”) and the effect on the business environment.
+Added: While we recognize the rapid development of AI and the potential impacts to the Company, any failure to properly implement AI and related practices and procedures with respect to the use of AI could harm our business, damage our reputation, or give rise to legal or regulatory action.
+Added: Organic growth strategies - If we fail to effectively manage and implement our operating strategies, we may experience a negative effect on our business and financial results.
+Added: A significant component of our growth strategy is to expand our channels and expand our existing products and services in our existing channels and entry into new channels.
+Added: These efforts may divert our resources and systems, require additional resources that might not be available (or available on acceptable terms), result in new or more intense competition, require longer implementation times or greater expenditures than anticipated and otherwise fail to achieve timely desired results, if at all.
+Added: If we are unable to increase our sales and earnings by expanding our product and service offerings in a cost-effective manner, our results may suffer.
+Added: Our ability to successfully manage our organic growth will require continued enhancement of our operational, managerial and financial resources, controls, and models.
+Added: Our failure to effectively manage our organic growth could have an adverse effect on our business, financial condition and results of operations.
+Added: Supply chain issues, including a shortage of products, may increase our costs or cause a delay in fulfilling channel sales partner orders, completing services or purchasing products and services needed to support our internal operations, resulting in an adverse impact on our financial results.
Our business depends on the timely supply of products in order to meet the demands of our channel sales partners.
Manufacturing interruptions or delays, including as a result of the financial instability or bankruptcy of manufacturers, significant labor disputes such as strikes, natural disasters, political or social unrest, pandemics or other public health crises or other adverse occurrences affecting any of our suppliers’ facilities, could further disrupt our supply chain.
−Removed: We could experience product constraints due to the failure of suppliers to accurately forecast channel sales partner demand or to manufacture
+Added: We could experience product constraints due to the failure of suppliers to accurately forecast channel sales partner demand or to manufacture sufficient quantities of product to meet channel sales partner demand (including as a result of shortages of product components), among other reasons.
Index to Financial Statements
−Removed: sufficient quantities of product to meet channel sales partner demand (including as a result of shortages of product components), among other reasons.
Our supply chain is also exposed to risks related to international operations.
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Supply chain issues, including a shortage of technology products and available services, may increase our costs or cause a delay in purchasing technology products needed to support our internal systems and infrastructure or operations, resulting in an impact on our operations and availability of our systems, which could result in a materially adverse effect on our operations and financial results.
−Removed: Credit exposure - We have credit exposure to our channel sales partners.
−Removed: Any adverse trends or significant adverse incidents in their businesses could cause us to suffer credit losses.
−Removed: As is customary in our industry, we extend credit to our channel sales partners, and most of our sales are on open accounts.
−Removed: We also provide financing to some Intelisys advisors based on their future commission flows.
−Removed: As we grow and compete for business, our typical payment terms tend to get longer, increasing our credit risk.
−Removed: While we evaluate our channel sales partners' qualifications for credit and monitor our extensions of credit, these efforts cannot prevent all credit losses and any credit losses negatively impact our performance.
−Removed: In addition, for financial reporting purposes, we estimate future credit losses and establish reserves.
−Removed: To the extent that our credit losses exceed those reserves, our financial performance will be negatively impacted beyond what is expected.
−Removed: If there is deterioration in the collectability of our receivables, or if we fail to take other actions to adequately mitigate such credit risk, our earnings, cash flows and our ability to utilize receivable-based financing could deteriorate.
−Removed: In addition, extending credit to international channel sales partners involves additional risks.
−Removed: It is often more difficult to evaluate credit risk with a channel sales partner or obtain credit protections in our international operations.
−Removed: Also, credit cycles and collection periods are typically longer in our international operations.
−Removed: As a result of these factors and other challenges in extending credit to international channel sales partners, we generally face greater credit risk from international sales compared to domestic sales.
−Removed: Reliance on third parties - We are dependent on third parties for some services, including the delivery of a majority of our products, logistics and warehousing.
−Removed: Changes in shipping terms or the failure or inability of our third-party shippers to perform could have an adverse impact on our business and results of operations.
−Removed: We rely on third parties to perform certain services for our business and for our channel sales partners, which, if not performed by these third parties in accordance with the terms of the arrangement, could result in significant disruptions or costs to our organization, including monetary damages and an adverse effect on our channel sales partner relationships.
−Removed: In particular, we are dependent upon major shipping companies, including FedEx and UPS, for the shipment of our products to and from our centralized warehouses.
−Removed: Changes in shipping terms, or the inability of these third-party shippers to perform effectively, could affect our responsiveness to our channel sales partners.
−Removed: From time to time, we have experienced significant increases in shipping costs due to increases in fuel costs and transit losses due to a congested supply chain.
−Removed: Increases in our shipping costs or transit losses may adversely affect our financial results if we are unable to pass on these higher costs to our channel sales partners.
−Removed: In Brazil, we use third parties to provide warehousing and logistics services in order to provide cost-effective operations and scale in certain regions.
−Removed: The failure or inability of one or more of these third parties to deliver products from suppliers to us, or products from us to our channel sales partners, for any reason could disrupt our business and harm our reputation and operating results.
−Removed: We work closely with our third-party logistics and warehousing providers to anticipate issues, and also review public information regarding their financial health.
−Removed: However, issues may not be timely identified, which may lead to lack of or poor execution of services, loss or litigation.
−Removed: Additionally, deterioration of the financial condition of our logistical and warehousing
−Removed: Index to Financial Statements
−Removed: providers could result in delayed responsiveness or delivery failure, which would ultimately affect our responsiveness to our channel sales partners and thus may adversely affect our business, financial condition and results of operations.
−Removed: Inventory - The value of our inventory may be adversely affected by market and other factors.
−Removed: Our business, like that of other distributors, is subject to the risk that the value of our inventory will be adversely affected by price reductions by manufacturers, by technological changes affecting the usefulness or desirability of our products or by foreign currency fluctuations.
−Removed: Some of our supplier agreements and certain manufacturers’ policies have some price protection and stock rotation opportunities with respect to slow-moving or obsolete inventory items;
−Removed: however, these protections are becoming less standard, subject to change, limited in scope and do not protect against all declines in inventory value, excess inventory, or product obsolescence, and in some instances we may not be able to fulfill all necessary conditions or successfully manage such price protection or stock rotation opportunities.
−Removed: In addition, these protections are not always reflected in supplier agreements and their application in a particular situation is dependent upon negotiations with our suppliers.
−Removed: As a result, we are required to write down the value of excess and obsolete inventory, and should any of these write-downs occur at a significant level, they could have an adverse effect on our business, financial condition and results of operations.
Suppliers - Changes to supply agreement terms or lack of product availability from our suppliers could adversely affect our operating margins, revenue or the level of capital required to fund our operations.
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As a result of s uch concentration risk, terminations of supply or services agreements or a change in terms or conditions of sale from one or more of our key suppliers could adversely affect our operating margins, revenue or the level of capital required to fund our operations.
−Removed: Our suppliers have the ability to make adverse changes in their sales terms and conditions, such as reducing the level of purchase discounts and rebates they make available to us.
+Added: Our suppliers have the ability to make adverse changes in their sales terms and conditions, such as reducing the level of purchase discounts and rebates they make available to us or passing product prices increased to us.
In addition, our supplier agreements typically are short-term and may be terminated without cause on short notice.
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Our operating results could be adversely impacted if these rebates or discounts are reduced or eliminated or if our suppliers significantly increase the complexity of their refund procedures and thus increase costs for us to obtain such rebates.
+Added: Increases in product costs from our suppliers may adversely affect our business if we are unable to pass those increases to our customers in a timely manner.
+Added: Significant or sustained price increases could reduce customer demand, compress gross margins and negatively impact our results of operations.
Our ability to obtain particular products or product lines in the required quantities and our ability to fulfill channel sales partner orders on a timely basis is critical to our success.
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Any loss or deterioration of a major supplier relationship could adversely affect our business, financial condition and results of operations.
+Added: Credit exposure - We have credit exposure to our channel sales partners.
+Added: Any adverse trends or significant adverse incidents in their businesses could cause us to suffer credit losses.
+Added: As is customary in our industry, we extend credit to our channel sales partners, and most of our sales are on open accounts.
+Added: We also provide financing to some Intelisys advisors based on their future commission flows.
+Added: As we grow and compete for business, our typical payment terms tend to get longer, increasing our credit risk.
+Added: While we evaluate our channel sales partners' qualifications for credit and monitor our extensions of credit, these efforts cannot prevent all credit losses and any credit losses negatively impact our performance.
+Added: In addition, for financial reporting purposes, we estimate future credit losses and establish reserves.
+Added: To the extent that our credit losses exceed those reserves, our financial performance will be negatively impacted beyond what is expected.
+Added: If there is deterioration in the collectability of our receivables, or if we fail to take other actions to adequately mitigate such credit risk, our earnings, cash flows and our ability to utilize receivable-based financing could deteriorate.
+Added: In addition, extending credit to international channel sales partners involves additional risks.
+Added: It is often more difficult to evaluate credit risk with a channel sales partner or obtain credit protections in our international operations.
+Added: Also, credit cycles and collection periods are typically longer in our international operations.
+Added: As a result of these factors and other challenges in extending credit to international channel sales partners, we generally face greater credit risk from international sales compared to domestic sales.
+Added: Reliance on third parties - We are dependent on third parties for some services, including the delivery of a majority of our products, logistics and warehousing.
+Added: Changes in shipping terms or the failure or inability of our third-party shippers to perform could have an adverse impact on our business and results of operations.
+Added: We rely on third parties to perform certain services for our business and for our channel sales partners, which, if not performed by these third parties in accordance with the terms of the arrangement, could result in significant disruptions or costs to our organization, including monetary damages and an adverse effect on our channel sales partner relationships.
+Added: In particular, we are dependent upon major shipping companies, including FedEx and UPS, for the shipment of our products to and from our centralized warehouses.
+Added: Changes in shipping terms, or the inability of these third-party shippers to perform effectively, could affect our responsiveness to our channel sales partners.
+Added: From time to time, we have experienced significant increases in shipping costs due to increases in fuel costs and transit losses due to a congested supply chain.
+Added: Increases in our shipping costs or transit losses may adversely affect our financial results if we are unable to pass on these higher costs to our channel sales partners.
+Added: In Brazil, we use third parties to provide warehousing and logistics services in order to provide cost-effective operations and scale in certain regions.
+Added: The failure or inability of one or more of these third parties to deliver products from suppliers to us, or products from us to our channel sales partners, for any reason could disrupt our business and harm our reputation and operating results.
+Added: We work closely with our third-party logistics and warehousing providers to anticipate issues, and we also review public information regarding their financial health.
+Added: However, issues may not be timely identified, which may lead to lack of or poor execution of services, loss or litigation.
+Added: Additionally, deterioration of the financial condition of our logistics and warehousing providers could result in delayed responsiveness or delivery failure, which would ultimately affect our responsiveness to our channel sales partners and thus may adversely affect our business, financial condition and results of operations.
+Added: Inventory - The value of our inventory may be adversely affected by market and other factors.
+Added: Our business, like that of other distributors, is subject to the risk that the value of our inventory will be adversely affected by price reductions by manufacturers, by technological changes affecting the usefulness or desirability of our products or by foreign currency fluctuations.
+Added: Some of our supplier agreements and certain manufacturers’ policies have some price protection and stock rotation opportunities with respect to slow-moving or obsolete inventory items;
+Added: however, these protections are becoming less standard, subject to change, limited in scope and do not protect against all declines in inventory value, excess inventory, or product obsolescence, and in some instances we may not be able to fulfill all necessary conditions or successfully
+Added: Index to Financial Statements
+Added: manage such price protection or stock rotation opportunities.
+Added: In addition, these protections are not always reflected in supplier agreements and their application in a particular situation is dependent upon negotiations with our suppliers.
+Added: As a result, we are required to write down the value of excess and obsolete inventory, and should any of these write-downs occur at a significant level, they could have an adverse effect on our business, financial condition and results of operations.
Channel sales partners - We operate in a highly competitive environment and good channel sales partner relations are critical to our success.
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Therefore, our channel sales partners can choose to purchase from other sources, such as from competing distributor or directly from the supplier.
−Removed: From time to time, we experience shortages in availability of some products from suppliers, and this impacts channel sales partner decisions regarding whether to make purchases from us.
+Added: From time to time, we experience shortages in availability of some products from suppliers, and this may impact channel sales partners’ decisions regarding whether to make purchases from us.
Anything that negatively influences channel sales partner relations can also negatively impact our operating results.
−Removed: As a distributor in a channel business model our offerings could create channel conflict, and the channel programs offered by our supplier can change.
−Removed: These perceived channel conflicts and channel programs could impact our channel sales partner relationships and negatively impact our operating results and our ability to retain channel sales partners.
+Added: As a distributor in a channel business model our offerings could create channel conflict, and the channel programs offered by our suppliers can change.
+Added: These perceived channel conflicts and channel programs changes could impact our channel sales partner relationships and negatively impact our operating results and our ability to retain channel sales partners.
Channel sales partner consolidation also may lead to changes in the nature and terms of relationships with our channel sales partners.
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Economic recession, higher interest rates and inflation could result in some of our channel sales partners shuttering their businesses, thus negatively impacting our business.
−Removed: Liquidity and capital resources - Market factors and our business performance may increase the cost and decrease the availability of capital.
+Added: Liquidity and capital resources - Market factors and our business performance may increase the cost or decrease the availability of capital.
Additional capital may not be available to us on acceptable terms to fund our working capital needs and growth.
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While we believe our existing sources of liquidity will provide sufficient resources to meet our current working capital and cash requirements, if we require an increase in capital to meet our future business needs or if we are unable to comply with covenants under our borrowings, such capital may not be available to us on terms acceptable to us, or at all.
−Removed: We have a multi-currency senior secured credit facility with JPMorgan Chase Bank N.A., as administrative agent, and a syndicate of banks (the “Amended Credit Agreement”).
−Removed: The Amended Credit Agreement includes customary representations, warranties and affirmative and negative covenants, including financial covenants such as a Leverage Ratio and Interest Coverage Ratio (each as such term is defined in the Amended Credit Agreement).
+Added: We have a multi-currency senior secured credit facility with PNC Bank, National Associations, as administrative agent, and other lenders (the “New Credit Agreement”).
+Added: The New Credit Agreement includes customary representations, warranties and affirmative and negative covenants, including financial covenants such as a Leverage Ratio and Interest Coverage Ratio (each as such term is defined in the New Credit Agreement).
In the event of a default, customary remedies are available to the lenders, including acceleration and increased interest rates.
−Removed: In addition, the cost of borrowings under our existing sources of capital and any potential new sources of capital as a result of variable interest rates may increase, which could have an adverse effect on our financial condition.
+Added: In addition, the cost of borrowings under our existing sources of capital and any potential new sources of capital may increase as a result of variable interest rates, which could have an adverse effect on our financial condition.
Changes in how lenders rate our credit worthiness, as well as macroeconomic factors such as an economic downturn, inflation, rising interest rates and global economic instability may restrict our ability to raise capital in adequate amounts or on terms acceptable to us, and the failure to do so could harm our ability to operate our business.
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however, we are exposed to risk of loss on such funds or we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to fail or suffer bankruptcy or similar restructuring.
+Added: Index to Financial Statements
Litigation - We routinely are involved in litigation that can be costly and lead to adverse results.
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We are routinely involved in litigation related to commercial disputes surrounding our business activities, intellectual property disputes, employment disputes and accounts receivable collection activity.
−Removed: In addition, as a public company with a large shareholder
−Removed: Index to Financial Statements
−Removed: base, we are susceptible to class-action lawsuits and other litigation resulting from disclosures that we or our officers and directors make (or do not make) and our other activities.
−Removed: Litigation is expensive to bring and defend, and the outcome of litigation can be adverse and significant.
+Added: In addition, as a public company with a large shareholder base, we are susceptible to class-action lawsuits and other litigation resulting from disclosures that we or our officers and directors make (or do not make) and our other activities.
+Added: Litigation is expensive to bring and to defend, and the outcome of litigation can be adverse and significant.
Not all adverse outcomes can be anticipated, and applicable accounting rules do not always require or permit the establishment of a reserve until a final result has occurred or becomes probable and estimable.
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We currently have significant facilities outside the United States.
−Removed: For fiscal year ending June 30, 2025, approximately 7.9% of our revenue was derived from our operations outside of the United States and Canada.
+Added: For fiscal year ending June 30, 2026, approximately 7.0% of our revenue, substantially from Brazil, was derived from our operations outside of the United States.
These operations are subject to a variety of risks that are different from the risks that we face domestically or are similar risks but with potentially greater exposure.
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• Compliance with foreign and domestic import and export regulations and anti-corruption laws, including the Iran Threat Reduction and Syria Human Rights Act of 2012, U.S.
−Removed: Foreign Corrupt Practices Act and similar laws of other jurisdictions, governing our business activities outside the United States, the violation of which could result in severe penalties, including monetary fines, criminal proceedings and suspension of export or import privileges;
−Removed: • Terrorist or military actions that result in destruction or seizure of our assets or suspension or disruption of our operations or those of our channel sales partners, suppliers or service providers.
+Added: Foreign Corrupt Practices Act and similar laws of other
Index to Financial Statements
−Removed: We have substantial operations in Brazil and face risks related to Brazil's complex tax, labor, trade compliance and consumer protection laws and regulations.
+Added: jurisdictions, governing our business activities outside the United States, the violation of which could result in severe penalties, including monetary fines, criminal proceedings and suspension of export or import privileges;
+Added: • Terrorist or military actions that result in destruction or seizure of our assets or suspension or disruption of our operations or those of our channel sales partners, suppliers or service providers.
+Added: We have substantial operations, including our new shared services model (SourceHub) in Brazil and face risks related to Brazil's complex tax, labor, trade compliance and consumer protection laws and regulations.
Additionally, developing markets such as Brazil have greater political volatility and vulnerability to infrastructure and labor disruptions, are more likely to experience market and interest rate fluctuations and may have higher inflation.
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Our commitment to legal compliance could put us at a competitive disadvantage, and any lapses in our compliance could subject us to civil and criminal penalties that could materially and adversely affect our financial condition and results of operations.
+Added: In addition, competition in Brazil is increasing.
+Added: If we cannot successfully increase our business, our product sales, our financial condition and results of operations could be adversely affected.
In 2025, the U.S.
announced a variety of additional tariffs on goods from multiple nations and trading blocks and has been targeted with reciprocal tariffs and other retaliatory actions in response.
−Removed: Although the implementation of many of these tariffs and retaliatory measures have been paused or delayed, negotiations and the state of international trade policy and relations continue to evolve.
+Added: While certain tariffs were struck down by the U.S.
+Added: Supreme Court in February 2026, the U.S.
+Added: subsequently announced additional new tariffs on nonexempt imports, and its tariff rate remains at a historically high level.
Additional tariffs, or the uncertainty around such tariffs, may cause disruptions to foreign and domestic supply chains or result in price increases.
−Removed: We have incurred, and expect to continue to occur, costs as it relates to these tariffs for the remainder of fiscal 2025 and the foreseeable future.
+Added: We have incurred, and expect to continue to occur, costs resulting from these tariffs.
We expect to continue to pass any price increases from our suppliers from tariffs to our channel sales partners, which may reduce demand.
However, we cannot predict the ultimate impact of tariffs and their effects on the global macroeconomic environment on our financial condition or results of operations.
−Removed: In addition, competition in Brazil is increasing.
−Removed: If we cannot successfully increase our business, our product sales, our financial condition and results of operations could be adversely affected.
−Removed: Quarterly fluctuations - Our net sales and operating results are dependent on several factors.
−Removed: Our net sales will fluctuate from quarter to quarter, and these fluctuations may cause volatility in our stock price.
−Removed: Our net sales and operating results may fluctuate quarterly and, as a result, our performance in one period may vary significantly from our performance in the preceding quarter, and may differ significantly from our performance forecast from quarter to quarter.
−Removed: The impact of these variances may cause volatility in our stock price.
−Removed: Additionally, any past financial performance should not be considered an indicator of future performance, and investors should not use historical trends to anticipate results or trends in the future as our operating results may fluctuate significantly quarter to quarter.
−Removed: The results of any quarterly period are not indicative of results to be expected for a full fiscal year.
Centralized functions - We have centralized several functions to provide efficient support to our business.
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Our competitors include local, regional, national and international distributors as well as hardware and service suppliers that sell directly to resellers and to end users.
−Removed: In addition, we compete with resellers and technology solutions
−Removed: Index to Financial Statements
−Removed: distributors that sell to franchisees, third-party dealers and end users.
+Added: In addition, we compete with resellers and technology solutions distributors that sell to franchisees, third-party dealers and end users.
Certain of our current competitors have, and potential competitors could have, greater financial, technical, marketing and other resources than we have and may be able to respond more quickly to new or emerging technologies and changes in channel sales partner requirements.
−Removed: Also, certain regional competitors, that are specialty two-tier or mixed model master resellers may be able to respond more quickly to new or emerging technologies and changes in channel sales partner requirements in their regions.
+Added: Also, certain regional competitors, that are specialty two-tier or mixed model master resellers may be able to respond more quickly to new or
+Added: Index to Financial Statements
+Added: emerging technologies and changes in channel sales partner requirements in their regions.
Competition has increased for our sales units as broad-line and other value-added distributors have entered into the specialty technology markets.
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To remain competitive, we may be forced to offer more credit or extend payment terms to our channel sales partners.
−Removed: This could result in an increase in our capital requirements, increase our financing costs, bad debt expenses and could have an adverse impact on our financial condition and results of operations.
+Added: This could result in an increase in our capital requirements, increase our financing costs and bad debt expenses and could have an adverse impact on our financial condition and results of operations.
We may lose market share, reduce our prices in response to actions of our competitors, or withdraw from geographical markets where we do not believe we can earn appropriate margins.
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Although some of our suppliers provide us with certain protections from a loss in value of inventory (such as price protection and certain return rights), we cannot be sure that such protections will fully compensate for any loss in value, or that such suppliers will choose to, or be able to, honor such agreements.
−Removed: Our ability and our suppliers’ ability to anticipate and react quickly to new technology trends, including artificial intelligence developments, and channel sales partner requirements is crucial to our overall success, financial condition and results of operations.
+Added: Our ability and our suppliers’ ability to anticipate and react quickly to new technology trends, including artificial intelligence developments, and channel sales partner requirements are crucial to our overall success, financial condition and results of operations.
If our suppliers fail to evolve their product and service offerings, or if we fail to evolve our product and service offerings or to engage with desirable suppliers in time to respond to, and remain ahead of, new technological developments, our ability to retain or increase market share, profit margins and revenue could be adversely affected.
1 unchanged sentence
Our future success depends, in part, on our ability to adapt and manage our product and service offerings to meet channel sales partner needs at prices that our channel sales partners are willing to pay.
+Added: Quarterly fluctuations - Our net sales and operating results are dependent on several factors.
+Added: Our net sales will fluctuate from quarter to quarter, and these fluctuations may cause volatility in our stock price.
+Added: Our net sales and operating results may fluctuate quarterly and, as a result, our performance in one period may vary significantly from our performance in the preceding quarter, and may differ significantly from our performance forecast from quarter to quarter.
+Added: The impact of these variances may cause volatility in our stock price.
+Added: Additionally, any past financial performance should not be considered an indicator of future performance, and investors should not use historical trends to anticipate results or trends in the future as our operating results may fluctuate significantly quarter to quarter.
+Added: The results of any quarterly period are not indicative of results to be expected for a full fiscal year.
General Risk Factors
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Our information technology and other systems that maintain and transmit channel sales partner or employee information or those of our service providers or business partners may be compromised by a malicious third-party penetration of network security or impacted by the advertent or inadvertent actions or inactions of our employees, third-party service providers or business partners.
−Removed: With constant changes in the security landscape, experienced computer programmers and hackers may be able to penetrate our network security, or that of our third-party service providers and business partners, and misappropriate or compromise confidential information, create system disruptions or cause shutdowns.
+Added: With constant changes in the security landscape, experienced computer programmers and hackers may be able to penetrate our network security, or that of our third-party service providers and business partners, and misappropriate or
+Added: Index to Financial Statements
+Added: compromise confidential information, create system disruptions or cause shutdowns.
As a result, our channel sales partners’ information may be lost, disclosed, accessed or taken without our channel sales partners’ consent.
We are subject to laws and regulations relating to channel sales partner privacy and the protection of personal information.
−Removed: Any such loss, disclosure or misappropriation of, or access to, our channel sales partners’ or business partners’ information or our information or other data breach affecting such information can result in legal claims or legal proceedings, including regulatory
−Removed: Index to Financial Statements
−Removed: investigations and actions, and may have a serious impact on our reputation and may adversely affect our businesses, operating results and financial condition.
+Added: Any such loss, disclosure or misappropriation of, or access to, our channel sales partners’ or business partners’ information or our information or other data breach affecting such information can result in legal claims or legal proceedings, including regulatory investigations and actions, and may have a serious impact on our reputation and may adversely affect our businesses, operating results and financial condition.
In May 2023, we learned that we had been the subject of a ransomware attack.
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Our financial results, operations and prospects depend significantly on worldwide economic and geopolitical conditions, the demand for our products and services, and the financial condition of our channel sales partners and suppliers.
−Removed: The macroeconomic environment, including the economic impacts of growth outlook, inflation, tariffs and shifting relations between the U.S.
+Added: The macroeconomic environment, including the economic impacts of growth outlook, inflation, tariffs, geopolitical conflict and shifting relations between the U.S.
and other countries , continues to create significant uncertainty and may adversely affect our consolidated results of operations.
−Removed: In 2025, the U.S.
−Removed: announced a variety of additional tariffs on goods from multiple nations and trading blocks and has been targeted with reciprocal tariffs and other retaliatory actions in response.
We are actively monitoring changes to the global macroeconomic environment and assessing the potential impacts these challenges may have on our financial condition, results of operations and liquidity.
9 unchanged sentences
Although U.S.
−Removed: inflation rates have shown sings of moderating, the re-emergence of high levels of inflation in the countries in which we operate could further increase our costs and otherwise adversely impact our results of operations and financial condition.
+Added: inflation rates have shown signs of moderating, the re-emergence of high levels of inflation in the countries in which we operate could further increase our costs and otherwise adversely impact our results of operations and financial condition.
We monitor changes to the macroeconomic environment;
however, we cannot predict any future trends in the rate of inflation or the general state of the economy.
+Added: Index to Financial Statements
Foreign currency - Our international operations expose us to fluctuations in foreign currency exchange rates that could adversely affect our results of operations.
2 unchanged sentences
We maintain policies to reduce our net exposure to foreign currency exchange rate fluctuations through the use of derivative financial instruments;
−Removed: however, there can be no assurance that
−Removed: Index to Financial Statements
−Removed: fluctuations in foreign currency exchange rates will not materially affect our financial results.
+Added: however, there can be no assurance that fluctuations in foreign currency exchange rates will not materially affect our financial results.
Because our consolidated financial statements are presented in U.S.
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.