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Risks

• Our business, results of operations and financial condition have been adversely affected and could in the future be materially adversely affected by the COVID-19 pandemic.
• Supply chain issues, including financial problems of contract manufacturers or component suppliers, or a shortage of adequate component supply or manufacturing capacity that increase our costs or cause a delay in our ability to fulfill orders, could have an adverse impact on our business and operating results, and our failure to estimate customer demand properly may result in excess or obsolete component supply, which could adversely affect our gross margins.
• Disruption of or changes in our distribution model could harm our sales and margins.
• The markets in which we compete are intensely competitive, which could adversely affect our achievement of revenue growth.
• If we do not successfully manage our strategic alliances, we may not realize the expected benefits from such alliances, and we may experience increased competition or delays in product development.
• Inventory management relating to our sales to our two-tier distribution channel is complex, and excess inventory may harm our gross margins.
• We depend upon the development of new products and services, and enhancements to existing products and services, and if we fail to predict and respond to emerging technological trends and customers’ changing needs, our operating results and market share may suffer.
• Changes in industry structure and market conditions could lead to charges related to discontinuances of certain of our products or businesses, asset impairments and workforce reductions or restructurings.
• Over the long term we intend to invest in engineering, sales, service and marketing activities, and in key priority and growth areas, and these investments may achieve delayed, or lower than expected, benefits which could harm our operating results.
• We have made and expect to continue to make acquisitions that could disrupt our operations and harm our operating results.
• Entrance into new or developing markets exposes us to additional competition and will likely increase demands on our service and support operations.
• Industry consolidation may lead to increased competition and may harm our operating results.
• Product quality problems could lead to reduced revenue, gross margins, and net income.
• Due to the global nature of our operations, political or economic changes or other factors in a specific country or region could harm our operating results and financial condition.
• We are exposed to the credit risk of some of our customers and to credit exposures in weakened markets, which could result in material losses.
• We are exposed to fluctuations in the market values of our portfolio investments and in interest rates; impairment of our investments could harm our earnings.
• We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows.
• Failure to retain and recruit key personnel would harm our ability to meet key objectives.
• Adverse resolution of litigation or governmental investigations may harm our operating results or financial condition.
• Our operating results may be adversely affected and damage to our reputation may occur due to production and sale of counterfeit versions of our products.
• Changes in our provision for income taxes or adverse outcomes resulting from examination of our income tax returns could adversely affect our results.
• Our business and operations are especially subject to the risks of earthquakes, floods, and other natural catastrophic events (including as a result of global climate change).
• Terrorism and other events may harm our business, operating results and financial condition.
• Our proprietary rights may prove difficult to enforce.
• We may be found to infringe on intellectual property rights of others.
• We rely on the availability of third-party licenses.
• Cyber-attacks, data breaches or malware may disrupt our operations, harm our operating results and financial condition, and damage our reputation or otherwise materially harm our business; and cyber-attacks or data breaches on our customers’ networks, or in cloud-based services provided by or enabled by us, could result in claims of liability against us, damage our reputation or otherwise materially harm our business.
• Vulnerabilities and critical security defects, prioritization decisions regarding remedying vulnerabilities or security defects, failure of third-party providers to remedy vulnerabilities or security defects, or customers not deploying security releases or deciding not to upgrade products, services or solutions could result in claims of liability against us, damage our reputation, or otherwise materially harm our business.
• Our business, operating results and financial condition could be materially harmed by regulatory uncertainty applicable to our products and services.
• Our stock price may be volatile.