There are so many... For example from the 10-Q
DEPENDENCE ON A LIMITED NUMBER OF CUSTOMERS
For the fiscal year ended August 31, 1997, the Company's three largest customers accounted for approximately 56% of net revenue and 18 customers accounted
for substantially all net revenue. 3Com Corporation ("3Com"), Cisco Systems, Inc. ("Cisco"), and Hewlett Packard Company ("Hewlett Packard"), accounted for
approximately 21%, 20%, 15% of net revenue, respectively. The Company expects to continue to depend upon a relatively small number of customers for a
significant percentage of its net revenue. Significant reductions in sales to any of the Company's large customers would have a material adverse effect on the
Company's results of operations. In the past, some of the Company's customers have terminated their manufacturing arrangement with the Company, and other
customers have significantly reduced or delayed the volume of manufacturing services ordered from the Company. There can be no assurance that present or future
customers will not terminate their manufacturing arrangements with the Company or significantly change, reduce or delay the amount of manufacturing services
ordered from the Company. Any such termination of a manufacturing relationship or change, reduction or delay in orders could have an adverse effect on the
Company's results of operations. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "BusinessCustomers and
Marketing."
3COM is adjusting all of its inventory.
JBIL statement is: we do not make any of the modems that 3 com is adjusting inventory therefore the modem inventory adjustments will not adversely impact JBIL bottom line. [They did not address the other items that JBIL makes for 3 com and the push back of those specific products.]
JBIL said that 3com will continue to account for 20-21% of net revenue. If, for example, you have a 30 day pushback in AR/orders and prices for your products decrease 10-15% due to competition 3com could still account for 21% of net income while return to the investor shrinks 20-25%
Regards,
Fenton
PS look at PCWORLD price comparisons for components over the past 12 months. JBIL officers did not lie, they told specific truths. They Clintonized their report. |
