Kimball Electronics (KE)

Risks

• We may be unable to purchase a sufficient amount of materials, parts, and components for use in our products at competitive prices, in a timely manner, or at all.
• Our business may be harmed due to failure to successfully implement information technology solutions or a lack of reasonable safeguards to maintain data security, including adherence to data privacy laws and physical security measures.
• The cost of providing employee healthcare benefits could increase and reduce our profitability.
• Litigation or legal proceedings could expose us to significant liabilities and have a negative impact on our reputation.
• Anti-takeover provisions in our organizational documents and Indiana law could delay or prevent a change in control.
• Our failure to maintain applicable registrations for our manufacturing facilities could negatively impact our ability to produce products for our customers.
• Compliance with government legislation and regulations may significantly increase our operating costs in the United States and abroad.
• Social and environmental responsibility policies and guidelines may increase our costs and impose difficult and expensive compliance requirements.
• We are exposed to interest rate risk on our borrowings.
• A change in our sales mix among various products could have a negative impact on our gross profit margin.