TESS Tessco Dashboard

Risks

• We face risks related to adverse global or national economic conditions or events (including health epidemics and trade wars and other outbreaks and events beyond our control) that could significantly disrupt our business and adversely affect our business, financial position and results of operations.
• We face significant competition in the wireless communications distribution industry.
• We typically purchase and sell our products and services on the basis of individual sales or purchase orders, and even in those cases where we have standing agreements or arrangements with our customers and suppliers, those agreements and arrangements typically contain no purchase or sale obligations and are otherwise terminable by either party upon several months or otherwise short notice.
• The loss or any change in the business habits of key customers or suppliers may have a material adverse effect on our financial position and results of operations.
• Changes in customer or product mix could cause our gross margin percentage to decline.
• Our business depends on the continued tendency of wireless equipment manufacturers and network operators to outsource aspects of their business to us in the future.
• We require substantial capital to operate, and the inability to obtain financing on favorable terms will adversely impact our business, financial position and results of operations.
• Our ability to maintain and borrow under our revolving credit agreement could be constrained by the level of eligible receivables and product inventory and by any failure to meet certain financial and other covenants in our revolving credit agreement.
• If we fail to meet our payment or other obligations under our secured revolving credit facility, our lenders could foreclose on, and acquire control of, a significant portion of our assets.
• Weakness in the global economic environment may have significant effects on our customers and suppliers that could result in material adverse effects on our business, operating results, and stock price.
• We may be unable to successfully execute our merchandising and marketing strategic initiatives.
• The telecommunications products marketplace is dynamic and challenging because of the continued introduction of new products and services.
• Consolidation among wireless service carriers could result in the loss of significant customers.
• The failure of our information technology or telecommunication systems, or our inability to maintain or upgrade our information technology or telecommunication systems without incident or delay, or undue cost, could have a material adverse effect on our business, financial position and results of operations.
• We, like most businesses, are subject to risk of cyber-attack and incur significant costs in efforts to defend these attacks.
• We depend heavily on e-commerce, and website security breaches or internet disruptions could have a material adverse effect on our business, financial position and results of operations.
• System security breaches or data protection breaches could adversely disrupt our business and harm our reputation, financial position and results of operations.
• The inability to hire or retain certain key professionals, management and staff could adversely affect our business, financial condition and results of operations.
• The damage or destruction of any of our principal distribution or administrative facilities could materially adversely impact our business, financial position and results of operations.
• We depend on third parties to manufacture products that we distribute and, accordingly, rely on their quality control procedures.
• We are subject to potential declines in inventory value.
• Our future operating results depend on our ability to purchase a sufficient amount of finished goods and bulk inventory to meet the demands of our customers.
• If our business does not perform well, or if we otherwise experience a decline in the fair values of a portion or all of our business, we may be required to recognize impairments of our intangible or other long-lived assets, which could adversely affect our results of operations or financial condition.
• We primarily rely on trademark filings and confidentiality agreements to protect our intellectual property rights.
• We offer credit to our customers and, therefore, are subject to significant credit risk.
• We may explore additional growth through acquisitions.
• Risks associated with the foreign suppliers from whom our products are sourced could adversely affect our financial performance.
• We rely on independent shipping companies to deliver inventory to us and to ship products to customers.
• Changes in accounting rules could have a material adverse impact on our results of operations.
• Changes in income tax and other regulatory legislation.
• We may be subject to litigation.
• We may incur product liability claims which could be costly and could harm our reputation.
• Our expanding offering of private labeled products may have a negative impact on our relationship with our manufacturer partners.
• A significant portion of our product offerings, including a majority of our private label Ventev products and products we acquire from our suppliers, are manufactured in foreign countries, making the price and availability of these products susceptible to international trade risks and other international conditions.
• Legislative or regulatory action could be taken that could limit our ability to use certain foreign suppliers to supply us with products.
• Claims that our products infringe the proprietary rights of others could harm our business and cause us to incur significant costs.
• A significant portion of our voting stock is controlled by our executive officers, directors and beneficial owners of 5% or more of our common stock.
• Our quarterly financial results may fluctuate, which could lead to volatility in our stock price.
• Without approval of our Board of Directors, it may be difficult for a third party to acquire control of the Company. This could affect the price of our common stock.
• Potential uncertainty resulting from unsolicited acquisition proposals and related matters may adversely affect our business.