AEIS Advanced Energy Industries Dashboard

Risks

• Our results of operations could be affected by natural disasters and other events in the locations in which we or our customers or suppliers operate.
• The industries in which we compete are subject to volatile and unpredictable cycles.
• We must achieve design wins to retain our existing customers and to obtain new customers, although design wins achieved do not necessarily result in substantial sales.
• Despite the continued evolution of our manufacturing footprint our product lines are manufactured at only a few sites and our sites are not generally interchangeable.
• Our long-term success and results of operations depend on our ability to successfully integrate Artesyn’s business and operations and realize the anticipated benefits from the acquisition.
• Our debt obligations and the restrictive covenants in the agreements governing our debt could limit our ability to operate our business or pursue our business strategies, could adversely affect our business, financial condition, results of operations, and cash flows, and could significantly reduce stockholder benefits from a change of control event.
• Our orders of raw materials, parts, components, and subassemblies are based on demand forecasts.
• Activities necessary to integrate acquisitions may result in costs more than current expectations or be less successful than anticipated.
• We transitioned a significant amount of our supply base to Asian suppliers.
• We generally have no long-term contracts with our customers requiring them to purchase any specified quantities from us.
• If we are unable to adjust our business strategy successfully for some of our product lines to reflect the increasing price sensitivity on the part of our customers, our business and financial condition could be harmed.
• A significant portion of our sales and accounts receivable are concentrated among a few customers.
• The loss of any of our key personnel could significantly harm our results of operations and competitive position.
• The market price of our common stock has fluctuated and may continue to fluctuate for reasons over which we have no control.
• Our operating results are subject to fluctuations, and if we fail to meet the expectations of securities analysts or investors, our share price may decrease significantly.
• We are highly dependent on our intellectual property.
• Our operations in the People’s Republic of China (PRC) and the Asia Pacific region are subject to significant political and economic uncertainties over which we have little or no control and we may be unable to alter our business practice in time to avoid reductions in revenues.
• We are subject to risks inherent in international operations.
• We are exposed to risks associated with worldwide financial markets and the global economy.
• Globalization of sales increases risk of compliance with policy.
• Our legacy inverter products may suffer higher than anticipated litigation, damage, or warranty claims.
• Our products may suffer from defects or errors leading to damage or warranty claims.
• Unfavorable currency exchange rate fluctuations may lead to lower operating margins, or may cause us to raise prices, which could result in reduced sales.
• The United Kingdom’s exit from the European Union and related actions could adversely affect us.
• Difficulties with our enterprise resource planning ("ERP") system and other parts of our global information technology system could harm our business and results of operation.
• If our network security measures are breached and unauthorized access is obtained to a customer’s data or our data or our information technology systems, we may incur significant legal and financial exposure and liabilities.
• We have been, and in the future may again be, involved in litigation. Litigation is costly and could result in further restrictions on our ability to conduct business or make use of market relationships we have developed, or an inability to prevent others from using our technology.
• Return on investments or interest rate declines on plan investments could result in additional unfunded pension obligations for our pension plan.
• Our intangible assets may become impaired.
• Significant developments stemming from recent U.S. government actions and proposals concerning tariffs and other economic proposals could have a material adverse effect on us.
• Increased governmental action on income tax regulations could negatively impact our business.
• Changes in tax laws, tax rates, or mix of earnings in tax jurisdictions in which we do business, could impact our future tax liabilities and related corporate profitability.
• 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 is subject to complex and evolving U.S. and international laws and regulations regarding privacy and data protection. Many of these laws and regulations are subject to change and uncertain interpretation and could result in claims, changes to our business practices, penalties, increased cost of operations, or declines in user growth or engagement, or otherwise harm our business.
• We are subject to numerous governmental regulations.
• Financial reform legislation will result in new laws and regulations that may increase our costs of operations.
• Our failure to maintain appropriate environmental, social, and governance ("ESG") practices and disclosures could result in reputational harm, a loss of customer and investor confidence, and adverse business and financial results.