MITAC CORPORATION 9525 DRIVER

In addition, we have entered into indemnification agreements with each of our directors. These adjustments are only of a normal and recurring nature. An account is maintained for each participant for the purpose of recording the current value of his or her elective contributions, including earnings credited thereto. We compete for qualified senior management and technical personnel. End-users include large corporations, governments, small- to medium-sized businesses, or SMBs, and personal users.

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Niżżel is-sewwieqa għall MITAC Corporation

These equity investments are classified as trading securities. The interim disclosure requirements are effective for interim periods beginning after December 15, Net cash provided by financing Under this program, bonuses granted to officers at the Senior Vice President level and above are determined by our compensation committee.

If we are unable to manage our inventory with our OEM suppliers with a high degree of precision, our business, financial position and operating results may suffer.

We also receive purchase discounts and rebates from OEM suppliers based on various factors, including sales corporatio purchase volume and breadth of customers. We will not receive any of the proceeds from the sale of the shares being sold by the selling stockholders.

From time to time thereafter, we may increase the amounts outstanding under our term loans and lines of credit and accounts receivable securitization program and use the proceeds therefrom for working capital and other general corporate purposes, including: Amortization of intangible assets included By leveraging the inventory management capabilities and system component supplier relationships of our distribution business, we provide cost-effective IT system contract assembly services.

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Sales of the accounts receivables to the financial institution under this program result in a reduction of total accounts receivable in our consolidated balance sheet.

In particular, we intend to achieve this objective by pursuing the following strategies: Our objective is to continue to expand our business by providing IT product OEMs and other suppliers outsourcing solutions including distribution, assembly and supply chain services, and by providing our reseller coproration outstanding execution, service and support.

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Selling, general and administrative expenses. Our revenue increased Actual results could differ from these estimates under different assumptions or conditions. All directors are reimbursed for their nitac out-of-pocket expenses in serving on the Board of Directors or any committee of the Board of Directors.

We expect that our total gross margins may decrease further in future periods as a result of the relative mix of our distribution and contract assembly revenue. The increase in fiscal reflected our higher financing needs as a result of our higher volume of business. During each accumulation period, payroll deductions will accumulate, without interest.

Table of Contents Employee Benefit Plans. We monitor our inventory levels and attempt to time our purchases to maximize our protection under supplier programs.

Niżżel-sewwieq għat MITAC Corporation 9525

The availability and terms of our financing services are subject to our credit policies or those of third party financing providers to our reseller customers. Generally, each OEM supplier has the ability to change the terms and conditions of their croporation agreements, such as reducing the amount of price protection and return rights or reducing the level of purchase discounts, rebates and marketing programs available to us.

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Under the Stock Incentive Plan: The decline in contract assembly revenue was the result of a decline in demand for IT products that we assemble for our primary OEM customers.

The increase in distribution revenue was somewhat mitigated by a continued general decline in demand for IT products. Before joining Oak Technology, Corporatoin. Our common stock may not be traded actively after this offering. Our effective borrowing cost under this facility at May 31, was 3. Although we generally have various levels of indemnification protection from our OEM corrporation and contract assembly customers, in many cases any indemnification to which we may be entitled is subject to maximum limits or other restrictions.

To increase our market share and better serve our customers, we plan to further expand our international operations.

Operating Systems, Application Software. Our Technology Solutions gross profit We offer various credit terms to our customers as well as prepayment, credit card and cash on delivery terms. Six Months Ended May 31.