Silicon Laboratories (SLAB)

Risks

• The COVID-19 pandemic could adversely affect our business, results of operations, and financial condition
• We are subject to the cyclical nature of the semiconductor industry, which has been subject to significant fluctuations
• We may not be able to maintain our historical growth and may experience significant period-to-period fluctuations in our revenues and operating results, which may result in volatility in our stock price
• We may be the victim of business disruptions and security breaches, including cyber-attacks, which could lead to liability or could damage our reputation and financial results
• We depend on our key personnel to manage our business effectively in a rapidly changing market, and if we are unable to retain our current personnel and hire additional personnel, our ability to develop and successfully market our products could be harmed
• Any acquisitions we make could disrupt our business and harm our financial condition
• The average selling prices of our products could decrease rapidly which may negatively impact our revenues and gross profit
• Failure to manage our distribution channel relationships could impede our future growth
• We are subject to increased inventory risks and costs because we build our products based on forecasts provided by customers before receiving purchase orders for the products
• Our products are complex and may contain errors which could lead to liability, an increase in our costs and/or a reduction in our revenues
• We may be subject to information technology failures that could damage our reputation, business operations and financial condition
• Our customers require our products to undergo a lengthy and expensive qualification process without any assurance of product sales
• Our inability to manage growth could materially and adversely affect our business
• We are subject to risks relating to product concentration
• Any dispositions could harm our financial condition
• Most of our current manufacturers, assemblers, test service providers, distributors and customers are concentrated in the same geographic region, which increases the risk that a natural disaster, epidemic, labor strike, war or political unrest could disrupt our operations or sales
• The semiconductor manufacturing process is highly complex and, from time to time, manufacturing yields may fall below our expectations, which could result in our inability to satisfy demand for our products in a timely manner and may decrease our gross profit due to higher unit costs
• We depend on our customers to support our products, and some of our customers offer competing products
• We have limited resources compared to some of our current and potential competitors and we may not be able to compete effectively and increase market share
• Changes in the privacy and data security/protection laws could have an adverse effect on our operations
• Our products must conform to industry standards and technology in order to be accepted by end users in our markets
• Significant litigation over intellectual property in our industry may cause us to become involved in costly and lengthy litigation which could adversely affect our business
• We may be unable to protect our intellectual property, which would negatively affect our ability to compete
• Our products incorporate technology licensed from third parties
• We are subject to credit risks related to our accounts receivable
• Our convertible senior notes could adversely affect our operating results and financial condition
• Provisions in our charter documents and Delaware law could prevent, delay or impede a change in control of us and may reduce the market price of our common stock