MXIM Maxim Integrated Products, Inc.

Risks

• The sale of our products and our results of operations are dependent upon demand from the end markets of our customers, which is cyclical.
• The loss of, or substantial reduction in sales to, any of our large customers could have a material adverse effect on our business, financial condition, and results of operations.
• Our global operations subject us to risks associated with changes in trade policies, including international trade disputes, and domestic or international political, social, economic or other conditions.
• Incorrect forecasts, reductions, cancellations or delays in orders for our products and volatility in customer demand could adversely affect our results of operations.
• We may experience difficulties implementing our new global execution system, which may adversely affect our ability to effectively supply products to our customers.
• Our operating results may be adversely affected by our inability to timely develop new products through our research and development efforts. We may be unsuccessful in developing and selling new products necessary to maintain or expand our business.
• Our manufacturing operations may be interrupted or suffer yield problems.
• Our dependence on subcontractors for assembly, test, freight, wafer fabrication and logistic services and certain manufacturing services may cause delays beyond our control in delivering products to our customers.
• Our critical information systems are subject to cyber-attacks, data breaches, interruptions, and failures.
• Our results of operations could be adversely affected by warranty claims and product liability.
• If we fail to attract and retain qualified personnel, our business may be harmed.
• Our independent distributors and sales representatives may underperform relative to our expectations, terminate their relationship with us or fail to make payments on outstanding accounts receivable to us, which would adversely affect our financial results.
• If we fail to enter into future vendor managed inventory arrangements or fail to supply the specific product or quantity under such arrangements, the results of our operations and financial condition may be materially adversely impacted.
• We may be unable to adequately protect our proprietary rights, which may impact our ability to compete effectively.
• We may suffer losses and business interruption if our products infringe the intellectual property rights of others.
• We may experience losses related to intellectual property indemnity claims.
• Our financial results may be adversely affected by increased tax rates and exposure to additional tax liabilities.
• Our operating results may be adversely affected by unfavorable economic and market conditions.
• Shortage of raw materials or supply disruption of such raw materials could harm our business.
• We may be liable for additional production costs and lost revenues to certain customers with whom we have entered into customer supply agreements if we are unable to meet certain product quantity and quality requirements.
• Our products may fail to meet new industry standards or requirements and the efforts to meet such industry standards or requirements could be costly.
• Our operating results may be adversely affected by increased competition and consolidation of competitors in our market.
• Extensions in lead-time for delivery of products could adversely affect our future growth opportunities and results of operations.
• We are subject to a variety of domestic and international laws and regulations that could impose substantial costs on us and may adversely affect our business.
• Our quarterly operating results may fluctuate, which could adversely impact our common stock price.
• Environmental, safety and health laws and regulations could force us to expend significant capital and incur substantial costs.
• We may pursue acquisitions and investments that could harm our operating results and may disrupt our business.
• Material impairments of our goodwill or intangible assets could adversely affect our results of operations.
• Our debt covenants may limit us from engaging in certain transactions or other activities.
• Business interruptions from natural disasters could harm our ability to produce products.
• Our financial condition, operations and liquidity may be materially adversely affected in the event of a catastrophic loss for which we are self-insured.
• We may be materially adversely affected by currency fluctuations.
• Exiting certain product lines or businesses, or restructuring our operations, may adversely affect certain customer relationships and produce results that differ from our intended outcomes.
• Our stock price may be volatile.
• Our certificate of incorporation contains certain anti-takeover provisions that may discourage, delay or prevent a hostile change in control of our Company.