Company Will Lower Costs While Maintaining Consistent,
Ongoing Information Technology Service Capabilities Worldwide
SANTA ANA, Calif., Nov. 12 /PRNewswire-FirstCall/ -- As part of its ongoing profit-enhancement program, Ingram Micro Inc., (NYSE: IM) the largest global wholesale provider of technology products and supply chain management services, today announced plans to appoint a third-party service provider by the end of the year to manage its information technology (IT) infrastructure functions. The company is in contract negotiations with a leading provider of business process and information technology outsourcing solutions.
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The move is a significant initiative within Ingram Micro's profit- enhancement program and is intended to lower ongoing IT operating expenses and reduce IT-related investments. The savings generated by this action were included in the operating income improvements outlined by the company in its Sept. 18 announcement of the profit-enhancement program.
"As a leading provider of IT distribution services to our customers, we believe in a business model that enhances our core competencies and allows us to deliver the best results for our business," said Guy Abramo, executive vice president and chief strategy and information officer, Ingram Micro Inc. "Contracting out our IT infrastructure gives us the best of both worlds -- we can take advantage of the third-party service provider's economies of scale to achieve a lower cost structure and have the flexibility to access the expertise needed to manage a variety of technology platforms."
Using a service provider for Ingram Micro's IT infrastructure functions will enable the company's internal IT staff to focus on strategic business and technology initiatives and the IT connectivity requirements of its customers and vendor partners. Ingram Micro preferred a service provider with a solid track record of providing high quality global IT services, financial strength and a history of hiring employees from client companies. Once the agreement is finalized, the service provider is expected to hire many of the approximately 200 associates located in positions throughout Ingram Micro's IT infrastructure operations in North America.
The service provider contract is expected to cover mainframe, major server, desktop and enterprise storage operations; wide area and local area network support and engineering; systems management services internal associate help desk services; and worldwide voice/PBX for the company. Ingram Micro will maintain IT strategy and architecture, worldwide application development, quality assurance, and customer and partner programs internally.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
The matters in this press release that are forward-looking statements are based on current management expectations that involve certain risks which if realized, in whole or in part, could have a material adverse effect on Ingram Micro's business, financial condition and results of operations, including, without limitation: the Company's failure to achieve intended cost reductions or profit improvement objectives under its recently announced profit enhancement program; disruptions in business operations due to reorganization activities; potential material decline in net sales if major suppliers significantly increase the level of business they transact directly with end-users and/or resellers in different product categories, customer segments, and/or geographies; potential decline in net sales and/or gross margins if the Company is not able to pass through to customers the impact of adverse changes in sales terms and conditions with major suppliers; potential termination of a supply or services agreement with a major supplier or customer; dependence on key individuals and inability to retain personnel; the continuation or worsening of the severe downturn in economic conditions (particularly purchases of technology products) and failure to adjust costs in a timely fashion in response to a sudden decrease in demand; losses resulting from significant credit exposure to reseller customers and negative trends in their businesses; continued pricing and margin pressures and intense competition within regional markets and internationally; future terrorist or military actions; reductions in credit ratings and/or unavailability of adequate capital; inability to manage future adverse industry trends; failure of information systems; interest rate and foreign currency fluctuations; adverse impact of governmental controls and actions and political or economic instability on foreign operations; product supply shortages; difficulties and risks associated with integrating operations and personnel in acquisitions; rapid product improvement and technological change and resulting obsolescence risks; and dependence on independent shipping companies.
Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on Ingram Micro's results of operations and financial condition. However, no assurances can be given that Ingram Micro will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning Ingram Micro, reference is made to Exhibit 99.01 of Ingram Micro's Annual Report on Form 10-K for the year ended December 29, 2001; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings.
About Ingram Micro Inc.
Ingram Micro Inc. is the leading wholesale provider of technology products and supply chain management services in the world. With sales of more than $25 billion for the fiscal year 2001, the company provides the best way to get technology from the people who make it to the people who use it. Visit www.ingrammicro.com/corp .
(C) 2002 Ingram Micro Inc. All rights reserved. Ingram Micro is a trademark used under license by Ingram Micro Inc.
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SOURCE Ingram Micro Inc.