Industries |
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Independent Power Producers and Energy Traders |
Automobile Manufacturers |
Motorcycle Manufacturers |
Technology Hardware Storage and Peripherals |
Information Technology |
Technology Hardware and Equipment |
Asset Management and Custody Banks |
Exposures |
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Express intent |
Cooperate |
Intelligence |
Regime |
Military |
Provide |
Ease |
Rights |
Event Codes |
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Yield to order |
Sports contest |
Host meeting |
Collaborate |
Agree |
Demand |
Yield |
Accident |
Warn |
Adjust |
Solicit support |
Pessimistic comment |
Force |
Acknowledge responsibility |
Reward |
Propose |
Wiki | Wiki Summary |
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2011 military intervention in Libya | On 19 March 2011, a multi-state NATO-led coalition began a military intervention in Libya, to implement United Nations Security Council Resolution 1973, in response to events during the First Libyan Civil War. With ten votes in favour and five abstentions, the UN Security Council's intent was to have "an immediate ceasefire in Libya, including an end to the current attacks against civilians, which it said might constitute "crimes against humanity" ... |
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Profitable growth | Profitable Growth is the combination of profitability and growth, more precisely the combination of Economic Profitability and Growth of Free cash flows. Profitable growth is aimed at seducing the financial community; it emerged in the early 80s when shareholder value creation became firms’ main objective. |
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Competitor Group | Competitor Group, Inc. (CGI) is a privately held, for-profit, sports marketing and management company based in Mira Mesa, San Diego, California. |
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Compensation and benefits | Compensation and benefits (C&B) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making. While compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and development. |
Balance sheet | In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. |
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Risk Factors |
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DATALINK CORP Item 1A Risk Factors |
As indicated in this Annual Report under the caption “Note Regarding Forward-Looking Statements,” certain information contained in this Annual Report consists of forward-looking statements |
Important factors that could cause actual results to differ materially from the forward-looking statements made in this Annual Report include the following: We cannot assure future profitability |
Although we achieved positive net income in the fourth quarter of 2004 and for the second, third and fourth quarters of 2005, we have incurred net losses all other quarters since the fourth quarter of 2001 |
We cannot assure that we will return to profitability in the foreseeable future, or at all |
Our continued losses may adversely affect our stock price |
Competition could prevent us from increasing or sustaining our revenues or profitability |
The enterprise-class information storage market is rapidly evolving and highly competitive |
As technologies change rapidly, we expect that competition will increase in the future |
We compete with independent storage system suppliers to the mid to large enterprise market and numerous value added resellers, distributors and consultants |
We also compete in the storage systems market with general purpose computer platform suppliers |
Many of our current and potential competitors have significantly greater financial, technical, marketing, purchasing and other resources than we do |
As a result, they may respond more quickly to new or emerging technologies and changes in customer requirements, devote greater resources to the development, promotion and sale of products and deliver competitive products at lower end-user prices |
Some of our current and potential competitors include our suppliers |
We are not the exclusive reseller of any data storage product we offer |
Instead, our suppliers market their products through other 9 ______________________________________________________________________ independent data storage solution providers, original equipment manufacturers and, often, through their own internal sales forces |
We believe direct competition from our suppliers is likely to increase if, as expected, the data storage industry continues to consolidate |
This consolidation would likely result in fewer suppliers with greater resources to devote to internal sales and marketing efforts |
In addition, our suppliers have established and will probably continue to establish cooperative relationships with other suppliers and other data storage solution providers |
These cooperative relationships are often intended to enable our suppliers to offer comprehensive storage solutions, which compete with those we offer |
If our relationships with our suppliers become adversarial, it will be more difficult for us to stay ahead of industry developments and provide our customers with the type of service they expect from us |
In addition, most of our customers already employ in-house technical staffs |
To the extent a customer’s in-house technical staff develops sophisticated storage systems expertise, the customer may be less likely to seek our services |
Further, we compete with storage service providers who manage, store and backup their customers’ data at off-site, networked data storage locations |
We derive a significant percentage of our revenues from a small number of customers |
In 2005, we had no customers that accounted for at least 10prca of our revenues |
However, our top five customers collectively accounted for 27prca of our 2005 revenues |
Because we intend to continue to seek out large projects, we expect that a significant percentage of our revenues will continue to come from a small number of customers, although the composition of our key customers is likely to change from year to year |
If we fail to obtain a growing number of large projects each year, our revenues and profitability will likely be adversely affected |
In addition, our reliance on large projects makes it more likely that our revenues and profits will fluctuate unpredictably from quarter to quarter and year to year |
Unpredictable revenue and profit fluctuations may make our stock price more volatile and lead to a decline in our stock price |
Our revenue recognition policies unpredictably defer reporting of our revenues |
We increasingly sell complex enterprise-class information storage solutions, which include installation and configuration services |
We do not recognize revenues from our sale of hardware and software products to our customers until we complete our required installation or configuration of these products |
Installation and configuration of these solutions requires significant coordination with our customers and vendors |
Therefore, even if we have shipped all products to our customers, we may be unable to control the timing of product installation and configuration |
These delays can prevent us from recognizing revenue on products we ship and may adversely affect our quarterly reported revenues |
Our key vendors could discontinue their incentive programs, which could adversely affect our business |
Several of our key vendors have offered incentive programs to us over the past several years based on our achievement of particular sales levels of their products |
These programs contributed to our profitability in 2004 and 2005 |
We cannot assure that these programs will continue |
If they do not, we may be unable to achieve profitability in the future |
Our business depends on our ability to hire and retain technical personnel and highly qualified sales people |
Our future operating results depend upon our ability to attract, retain and motivate qualified engineers and sales people with enterprise-class information storage solutions experience |
If we fail to recruit and retain additional engineering and sales personnel, or if continued losses require us in the future to terminate employment of some of these personnel, we will experience greater difficulty realizing our growth strategy, which could negatively affect our business, financial condition and stock price |
10 ______________________________________________________________________ We generally do not have employment agreements with our key employees |
Our future operating results depend in significant part upon the continued contributions of our executive officers, managers, salespeople, engineers and other technical personnel, many who have substantial experience in our industry and would be difficult to replace |
Except as to our new Chief Financial Officer, we generally do not have employment, non-competition or nondisclosure agreements with our officers or employees, including our executive officers |
Accordingly, our employees may voluntarily leave us at any time and work for our competitors |
Our growth strategy depends in part on our ability to retain our current employees and hire new employees |
Any failure to retain our key employees will make it much more difficult for us to maintain our operations and attain our growth objectives and could therefore be expected to adversely affect our operating results, financial condition and stock price |
Our long sales cycle may cause fluctuating operating results, which may adversely affect our stock price |
Our sales cycle is typically long and unpredictable, making it difficult to plan our business |
Economic conditions over the past several years have increased this uncertainty |
Our long sales cycle requires us to invest resources in potential projects that may not occur |
In addition, our long and unpredictable sales cycle may cause us to experience significant fluctuations in our future annual and quarterly operating results |
It can also result in delayed revenues, difficulty in matching revenues with expenses and increased expenditures |
Our business, operating results or financial condition and stock price may suffer as a result of any of these factors |
If the data storage industry fails to develop compelling new storage technologies, our business may suffer |
Rapid and complex technological change, frequent new product introductions and evolving industry standards increase demand for our services |
Because of this, our future success depends in part on the data storage industry’s ability to continue to develop leading-edge storage technology solutions |
Our customers utilize our services in part because they know that newer technologies offer them significant benefits over the older technologies they are using |
If the data storage industry ceases to develop compelling new storage solutions, or if a single data storage standard becomes widely accepted and implemented, it will be more difficult to sell new data storage systems to our customers |
We may not be fully compliant with Sarbanes-Oxley regulations |
Beginning with our year-end audit for 2007, Section 404 of the Sarbanes-Oxley Act of 2002 will require us to formally assess and attest that our internal controls are sufficient to provide accurate reporting of financial results |
We will engage our independent accountants to perform an audit of our assessment and issue an opinion on the sufficiency of our internal controls |
We are in the beginning phases of our assessment |
Although we expect to incur significant costs to achieve compliance, we do not know if we will be fully compliant with the regulations by the end of 2007 |
If we are not compliant, we may incur additional costs to become compliant, we could lose our Nasdaq Stock Market listing and our stock price could be unfavorably impacted |
Control by our existing stockholders could discourage the potential acquisition of our business |
Currently, our executive officers and directors beneficially own approximately 38prca of our outstanding common stock |
Acting together, these insiders may be able to elect our entire Board of Directors and control the outcome of all other matters requiring stockholder approval |
This voting concentration may also have the effect of delaying or preventing a change in our management or control or otherwise discourage potential acquirers from attempting to gain control of us |
If potential acquirers are deterred, you may lose an opportunity to profit from a possible acquisition premium in our stock price |
The market price of our common stock has fluctuated significantly since our initial public offering, and may continue to be volatile |
We cannot assure you that our stock price will increase, or even that it will not decline significantly from the price you pay |
Our stock price may be adversely affected by many factors, including: · actual or anticipated fluctuations in our operating results, including those resulting from changes in accounting rules; · announcements of technical innovations; · new products or services offered by us, our suppliers or our competitors; · changes in estimates by securities analysts of our future financial performance; · our compliance with SEC and Nasdaq rules and regulations, including the Sarbanes-Oxley Act of 2002; and · general market conditions, including the effects of economic conditions over the past several years and war and terrorism threats |
Our governing documents and Minnesota law may discourage the potential acquisitions of our business |
Our Board of Directors may issue additional shares of capital stock and establish their rights, preferences and classes, in some cases without stockholder approval |
In addition, we are subject to anti-takeover provisions of Minnesota law |
These provisions may deter or discourage takeover attempts and other changes in control of us not approved by our Board of Directors |
If potential acquirers are deterred, you may lose an opportunity to profit from a possible acquisition premium in our stock price |
We perform impairment analyses of our goodwill at least annually or when we believe there is an impairment |
Future events could cause us to conclude that impairment indicators exist and that goodwill associated with our acquired businesses is impaired |
Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations |
If we fail to elect an additional independent director to our Board, we may lose our Nasdaq Stock Market listing |
In March 2006, one of our directors, Gregory T Barnum, accepted employment with us as our new Chief Financial Officer |
Barnum resigned from our Board of Directors |
This action left us with six directors, only three of whom we have determined are “independent” under the rules of the Nasdaq Stock Market |
Nasdaq requires that we have a majority of directors who are independent |
In accordance with Nasdaq rules, we have until our next scheduled annual meeting (in May 2006) to correct this deficiency |
Until we do so, Nasdaq will identify us as a non-compliant company, which could adversely affect our stock price |
We cannot assure that we will timely identify and elect a new independent director or obtain the resignation of a non-independent director to otherwise comply with the Nasdaq rules |
If we fail to timely comply, Nasdaq could remove our stock from trading, which could adversely affect our stock price |
12 ______________________________________________________________________ Our future recognition of the expenses associated with stock-based compensation may adversely affect our stock price |
In the first quarter of 2006, we will adopt SFAS 123(R), which will require us to measure and recognize compensation expense for all stock-based compensation based on estimated fair values |
As a result, our operating results for 2006 and future years will contain a charge for stock-based compensation related to restricted stock and stock options granted to employees and employee stock purchases |
This charge is in addition to any stock-based compensation we have recognized in the past |
SFAS 123(R) requires the use of an option pricing model to determine the fair value of share-based payment awards |
Our stock price, as well as assumptions regarding a number of highly complex and subjective variables, will affect our determination of fair value |
We cannot assure that the valuation models we apply will accurately measure the fair value of our stock-based compensation |
Our stock price may be adversely affected by the existence, amount or unpredictability of our future stock-based compensation expense |