IIVI Ii-Vi Dashboard

Risks

• Investments in future markets of potential significant growth may not result in the expected return.
• Our competitive position depends on our ability to develop new products and processes.
• Widespread health crises, including the global novel coronavirus (COVID-19) pandemic, could materially and adversely affect our business, financial condition, and results of operations.
• Global economic downturns, including any downturn related to COVID-19, may adversely affect our business, operating results, and financial condition.
• Some systems that use our products are complex in design, and our products may contain defects that are not detected until deployed, which could increase our costs, reduce our revenues, cause us to lose key customers, and may expose us to litigation related to our products.
• Foreign currency risk may negatively affect our revenues, cost of sales, and operating margins, and could result in foreign exchange losses.
• Our competitive position may still require significant investments.
• We may be unable to successfully implement our acquisitions strategy or integrate acquired companies and personnel with existing operations.
• Although II-VI continues to expect that its acquisition of Finisar will result in cost savings, synergies, and other benefits, the combined company may not realize those benefits, or be able to retain those benefits even if realized.
• Our future success depends on continued international sales, and our global operations are complex and present multiple challenges to manage.
• We are subject to complex and rapidly changing import and export regulations which could limit our sales and decrease our profitability.
• Changes in trade policies, such as increased import duties, could increase the costs of goods imported into the United States or China.
• Any inability to access financial markets from time to time to raise required capital, finance our working capital requirements or our acquisition strategies, or otherwise support our liquidity needs could negatively impact our ability to finance our operations, meet certain obligations, or implement our growth strategy.
• We may not be able to settle conversions of our convertible senior notes in cash or repurchase the notes in accordance with their terms.
• Our credit agreement restricts our operations, particularly our ability to respond to changes or to take certain actions regarding our business.
• We may fail to accurately estimate the size and growth of our markets and our customers’ demands.
• We may encounter increased competition and we may fail to accurately estimate our competitors’ or our customers’ willingness and capability to backward integrate into our competencies and thereby displace us.
• There are limitations on the protection of our intellectual property and we may from time to time be involved in costly intellectual property litigation or indemnification.
• A significant portion of our business is dependent on cyclical industries.
• Our global operations are subject to complex legal and regulatory requirements.
• Changes in laws and regulations governing data privacy and data protection could have a material adverse impact on our business.
• Data breach incidents and breakdown of information and communication technologies could disrupt our operations and impact our financial results.
• We have entered into supply agreements that commit us to supply products on specified terms.
• We depend on highly complex manufacturing processes that require feeder materials, components, and products from limited sources of supply.
• Increases in commodity prices may adversely affect our results of operations and financial condition.
• We use and generate potentially hazardous substances that are subject to stringent environmental regulations.
• We have a substantial amount of debt, which could adversely affect our business, financial condition, or results of operations and prevent us from fulfilling our debt-related obligations.
• Unfavorable changes in tax rates, tax liabilities, or tax accounting rules could negatively affect future results.
• Natural disasters or other global or regional catastrophic events could disrupt our operations, give rise to substantial environmental hazards, and adversely affect our results.
• Our success depends on our ability to attract, retain, and develop key personnel and requires continued good relations with our employees.
• We contract with a number of large end-user service providers and product companies that have considerable bargaining power, which may require us to agree to terms and conditions that could have an adverse effect on our business or ability to recognize revenues.
• We may be adversely affected by climate change regulations.
• We depend on large purchases from a few significant customers, and any loss, cancellation, reduction, or delay in purchases by these customers could harm our business.
• The manufacturing of our products may be adversely affected if we are unable to manufacture certain products in our manufacturing facilities.
• Failure to accurately forecast our revenues could result in additional charges for obsolete or excess inventories or noncancellable purchase commitments.
• If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.
• Our stock price has been volatile in the past and may be volatile in the future.
• Provisions in our Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) and Amended and Restated By-Laws (the “By-Laws”) and the Pennsylvania Business Corporation Law (the “BCL”) may delay or prevent our acquisition by a third party, which could also reduce the market price of our capital stock.
• Because we do not currently intend to pay dividends, holders will benefit from an investment in our common stock only if it appreciates in value and by the intended anti-dilution actions of our share-buyback program.
• Our ability to declare and pay dividends on our capital stock may be limited, including by the terms of our existing Credit Agreement.
• The Mandatory Convertible Preferred Stock may adversely affect the market price of our common stock.
• Our common stock is subordinate to our existing and future indebtedness; the Mandatory Convertible Preferred Stock, when issued; and any other preferred stock we may issue in the future. Our Mandatory Convertible Preferred Stock ranks junior to all of our and our subsidiaries’ consolidated liabilities.
• Our board of directors can issue, without approval of the holders of our common stock, preferred stock with voting and conversion rights that could adversely affect the voting power of the holders of our common stock, the rights of holders of shares of our capital stock, or the market price of our capital stock.
• Reports published by securities or industry analysts, freelance bloggers and credit rating agencies, including projections in those reports that exceed our actual results, could adversely affect our share price and trading volume.
• Regulatory actions may adversely affect the trading price and liquidity of the Mandatory Convertible Preferred Stock.
• Holders of Mandatory Convertible Preferred Stock have no voting rights with respect to the Mandatory Convertible Preferred Stock, except under limited circumstances.
• We depend on our subsidiaries for cash to fund our operations and expenses, including future dividend payments with respect to the Mandatory Convertible Preferred Stock.