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Wiki Wiki Summary
Goto GoTo (goto, GOTO, GO TO or other case combinations, depending on the programming language) is a statement found in many computer programming languages. It performs a one-way transfer of control to another line of code; in contrast a function call normally returns control.
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Agility Logistics Agility Public Warehousing Company K.S.C.P. is a publicly traded global company headquartered in Kuwait, and is a leading provider of supply chain services, innovation and investment. The company develops and operates logistics parks across the Middle East, Africa and South Asia.
McKesson Corporation McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools. The company delivers a third of all pharmaceuticals used in North America and employs over 78,000 employees.
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Risk Factors
STRATEGIC DISTRIBUTION INC Item 1A Risk Factors The risks described below, together with all of the other information included in this report, should be carefully considered in evaluating our business and prospects
Additional information regarding various risks and uncertainties facing us are included under Item 7 and elsewhere in this report on Form 10-K The risks and uncertainties described in this Form 10-K are not the only ones facing us
Additional risks and uncertainties not presently known or deemed insignificant may also impair our business operations
The occurrence of any of the following risks could harm our business, financial condition or results of operations
Solely for purposes of the risk factors in this Item 1A, the terms “we”, “our” and “us” refer to Strategic Distribution, Inc
and its subsidiaries
Certain Factors Affecting Forward Looking Statements Some information provided by us or statements made by us may be subject to uncertainties and risks
Any statements included in this Annual Report on Form 10-K, including any statements referenced or incorporated by reference which are not statements of historical fact, are forward-looking statements
Our industry is very competitive and we cannot assure you that we will be able to compete successfully against all of our competitors
We operate in a highly competitive industry, from the standpoint of number, size and strength of competitors
While most of the distributors are small enterprises selling to customers in a limited geographic area, there are also larger MRO supply distributors, integrated supply providers and large warehouse stores that have greater financial resources than we do
Some of these integrated supply providers are also wholesale distributors that have access to more favorable MRO supply pricing than are available to us
The primary areas of competition include price, breadth and quality of product lines, fill rates, and technological capabilities
Our initiatives continue to set us apart as a leader in our industry through value-added services and comprehensive technological capabilities for our customers
However, we cannot predict the entry of new competitors into the industry or scaling down of competition through consolidations, which may result in a competitor strengthening their competitive position relative to us
We have a high concentration of risk with regards to revenues, inventories and receivables attributable to a few customers
We have a high concentration of revenues, inventory and receivables attributable to a few customers
Loss of any of these customers, without replacement of revenue source, could have a material adverse effect on our business
See Item 8, “Financial Statements and Supplementary Data—Notes to the Financial Statements”, Footnote Nodtta 15 for more information
We continue to focus on growth opportunities but cannot guarantee that the market will accept the new modified offerings
We are continuing to refocus our business strategy to meet the demands of an evolving marketplace
We continue our sales initiative for fee-for-services models which place a greater emphasis upon the value-added supply chain management services, as opposed to MRO product sales and inventory ownership
To this extent, we have continued to enhance our service offering by increasing system capabilities and providing more flexible solutions, including In-Site Online designed for smaller sites where a comprehensive In-Plant Store is not economically justified
We believe these changes in offering, combined with intensified MRO supply pricing pressure, have lengthened our sales cycle
We also believe that the modified offerings will gain market acceptance as customers come to understand this value proposition, yet there is no guarantee concerning whether or when such market acceptance will occur
6 ______________________________________________________________________ We do experience some seasonality in our business with regards to revenues from one institutional customer
Our revenues are affected by such things as the length of sales cycles, and the timing of new customer contracts
As such, our revenues are difficult to predict, but typically there is a spike in revenues and associated costs during the third quarter of the year, particularly with regard to an institutional customer
Although we operate under formal contracts with all our customers, we do run the risk of contract termination for causes beyond our control
We operate under formal contracts with all of our customers
Our management continuously works with our customers to gauge their satisfaction with the contracts and our performance, and therefore, we should be able to anticipate such events and react accordingly
In addition, our cultivation of new prospects is an ongoing process
Over the past three years, El Paso Corporation (“EPC”), our largest customer in 2003, terminated our contract
Revenues from EPC in 2003 through the termination date were dlra16dtta0 million
Our deliverables to customers are highly dependent upon the smooth functioning of our systems
Our ability to provide reliable technical services is dependent upon the efficiency and effectiveness of our network systems and data centers
Our ability to sell services outside the United States is highly dependent upon laws and policies in these countries
We operate outside the US, both in Canada and Mexico
Changes in the laws or policies of countries in which we operate could affect our results of operations
Our ability to operate efficiently is dependent on our reaction to economic changes
Our results may be adversely affected by macroeconomic changes, such as inflation and recession
In the event of economic downturn, we could experience customer bankruptcies, reduced volume of business from our existing customers and lost volume due to plant shutdowns, or consolidations of our customers
Our ability to grow our infrastructure is highly dependent upon hiring and retaining key personnel
Our continued growth and success is inherently dependent upon the retention of senior management and other key employees, the development and training of employees for management positions, and the hiring of new qualified personnel
There is no assurance that we will continue to effectively recruit and retain key personnel in management positions
Our continued focus to grow the margin and income is contingent on the control of operating costs and general and administrative expenses
We continue to monitor our costs, however, there is no assurance that further cost reductions can be made without inhibiting potential growth
We rely on certain information to make customer credit decisions
We maintain an experienced credit staff and rely on customer payment and credit history in making customer credit decisions
However, we may experience credit losses in excess of projections
See “Financial Statements and Supplementary Data—Notes to Consolidated Financial Statements”, Schedule II for quantitative information