12 unchanged sentences
In addition, certain of our logistics and shipping operations are in Taiwan and Hong Kong.
−Removed: If any of our third party assembly and testing partners or our logistics and shipping operations are unable to operate efficiently or at all due to responsive measures to COVID-19, we may experience delays in our supply chain and be unable to meet our customers’ expectations and requirements.
−Removed: We also have operations in China.
+Added: If any of our third-party manufacturing, assembly and testing partners or our logistics and shipping operations are unable to operate efficiently or at all due to responsive measures to COVID-19, we may experience delays in our supply chain and be unable to meet our customers’ expectations and requirements.
If remote or work from home conditions in any of our offices continue for an extended period of time, we may experience delays in product development, a decreased ability to support our customers, reduced design win activity, and overall lack of productivity.
1 unchanged sentence
COVID-19 has negatively impacted the overall global economy and, as a result of, may negatively impact demand for our customers’ products and, in turn, impact demand for our solutions.
−Removed: If COVID-19 continues to progress in ways that further disrupt the manufacture, shipment and buying patterns of the products of our customers or our products, or further deteriorates the global economy, it may materially negatively impact our operating results for the second quarter of fiscal 2021 and subsequent periods, including revenue, gross margins, operating margins, cash flows and other operating results and our overall business.
+Added: If COVID-19 continues to progress in ways that further disrupt the manufacture, shipment and buying patterns of our products or the products of our customers, or further deteriorates the global economy, it may materially negatively impact our operating results for the second half of fiscal 2021 and subsequent periods, including revenue, gross margins, operating margins, cash flows and other operating results and our overall business.
If our customers do not design our solutions into their product offerings, or if our customers’ product offerings are not commercially successful, our business would suffer.
25 unchanged sentences
On October 9, 2019, our security camera customers Hangzhou Hikvision Digital Technology Co., Ltd, or Hikvision, and Zhejiang Dahua Technology Co., Ltd., or Dahua, were added to the Entity List of the Bureau of Industry and Security, or BIS, of the U.S.
−Removed: Department of Commerce, which imposes limitations on the supply of certain U.S.
+Added: Department of Commerce, or Commerce, which imposes limitations on the supply of certain U.S.
items to the listed entities.
11 unchanged sentences
Beyond the BIS actions relating to Hikvision and Dahua, general trade tensions between the United States and China have been escalating, which has, in our view, created and will continue to create an uncertain business environment.
+Added: For example, BIS has added over 150 entities related to Huawei Technologies Co., Ltd.
+Added: to the Entity List and created new controls on foreign-produced items when one of these entities is a party to the transaction.
If additional tariffs or trade restrictions are imposed on our SoC solutions or the products of our customers, or trade restrictions are imposed on our ability to conduct business with certain customers, there could be a negative impact on our operations and financial performance.
11 unchanged sentences
We must export our products in compliance with U.S.
−Removed: export controls, including the Commerce Department’s Export Administration Regulations.
+Added: export controls, including the Commerce’s Export Administration Regulations.
We may not always be successful in obtaining necessary export licenses, and our failure to obtain required import or export approval for our products or limitations on our ability to export or sell our products imposed by these laws may harm both our international and domestic sales and adversely affect our revenue.
5 unchanged sentences
We operate a warehouse facility in Hong Kong through which the substantial majority of our finished SoCs are shipped to customers or logistic partners.
+Added: BIS has imposed additional restrictions on exports and reexports of U.S.-controlled items to Hong Kong by removing preferential treatment that Hong Kong used to receive and imposing more stringent licensing requirements similar to those applicable to China.
Hong Kong has recently experienced, and continues to experience, significant political unrest and social strife, including protests that resulted in the closing of the Hong Kong international airport on August 12, 2019 for two days.
19 unchanged sentences
Our customers typically do not provide us with firm, long-term purchase commitments.
−Removed: A substantially majority of our sales are made on a purchase order basis, which permits our customers to cancel, change or delay their product purchase commitments with little or no notice to us and often without penalty to them.
+Added: A substantial majority of our sales are made on a purchase order basis, which permits our customers to cancel, change or delay their product purchase commitments with little or no notice to us and often without penalty to them.
Because production lead times often exceed the amount of time required by our customers to fill their orders, we often must build SoCs in advance of receiving orders from customers, relying on an imperfect demand forecast to project volumes and product mix.
14 unchanged sentences
In fiscal year 2020, the customers representing 10% or more of our revenue were Wintech Microelectronics Co., Ltd., or Wintech, the Company’s distributor, and Chicony Electronics Co., Ltd., or Chicony, a direct ODM customer, which accounted for approximately 60% and 18% of total revenue, respectively.
−Removed: For the three months ended April 30, 2020, the customers representing 10% or more of revenue were Wintech and Chicony which accounted for approximately 63% and 15% of total revenue, respectively.
+Added: For the six months ended July 31, 2020, the customers representing 10% or more of revenue were Wintech and Chicony which accounted for approximately 60% and 17% of total revenue, respectively.
We believe that our operating results for the foreseeable future will continue to depend on sales to a relatively small number of customers and end customers.
117 unchanged sentences
For the twelve months ended January 31, 2020, our revenue increased by 0.4% compared to the same period in fiscal year 2019, and we incurred a net loss of $44.8 million.
−Removed: For the three months ended April 30, 2020, while our revenue increased by 15.8% compared to the same period in fiscal year 2020, we incurred a net loss of $15.5 million.
+Added: For the six months ended July 31, 2020, our revenue increased by 1.1% compared to the same period in fiscal year 2020, and we incurred a net loss of $30.2 million.
We may experience similar fluctuations or declines in revenue or net losses in the future, which would harm our operating results.
2 unchanged sentences
Our research and development expense was $129.7 million, $128.1 million and $115.5 million in fiscal years 2020, 2019 and 2018, respectively.
−Removed: For the three months ended April 30, 2020, our research and development expense was $34.2 million.
+Added: For the six months ended July 31, 2020, our research and development expense was $67.0 million.
We expect to increase our research and development expenditures as compared to prior periods as part of our strategy of focusing on the development of innovative video and image processing solutions with increased functionality, such as computer vision capabilities, and as we target new markets, such as the automotive OEM and robotics markets.
16 unchanged sentences
Our revenue decreased to $295.4 million in fiscal year 2018 and to $227.8 million in fiscal year 2019, resulting in the first annual net losses since our IPO in 2012.
−Removed: In fiscal year 2020, our revenue increased by 0.4% compared to the same period in fiscal year 2019.
−Removed: For the three months ended April 30, 2020, while our revenue increased by 15.8% compared to the same period in fiscal year 2020, we incurred a net loss of $15.5 million.
+Added: In fiscal year 2020, our revenue increased by 0.4% compared to fiscal year 2019.
+Added: For the six months ended July 31, 2020, our revenue increased by 1.1% compared to the same period in fiscal year 2020, and we incurred a net loss of $30.2 million.
We continue to invest in the development of new technology and solutions and expect our research and development expenditures to increase compared to prior periods.
19 unchanged sentences
We sell a significant percentage of our solutions through a single distributor, Wintech Microelectronics Co., Ltd., or Wintech, which serves as our non-exclusive sales representative in Asia, other than Japan.
−Removed: Approximately 60%, 58% and 59% of our revenue was derived from sales through Wintech for the fiscal years ended January 31, 2020, 2019 and 2018, respectively, and approximately 63% of our revenue was derived from sales through Wintech for the three months ended April 30, 2020.
+Added: Approximately 60%, 58% and 59% of our revenue was derived from sales through Wintech for the fiscal years ended January 31, 2020, 2019 and 2018, respectively, and approximately 60% of our revenue was derived from sales through Wintech for the six months ended July 31, 2020.
We anticipate that a significant portion of our revenue will continue to be derived from sales through Wintech in the foreseeable future.
31 unchanged sentences
Our industry is characterized by high demand and intense competition for talent.
−Removed: The pool of qualified candidates is limited, particularly in Silicon Valley and parts of Asia for very-large-scale integration, or VLSI, and computer vision engineers, and certain of our competitors and potential competitors with greater resources have directly targeted our employees.
+Added: The pool of qualified candidates is limited, particularly in Silicon Valley and parts of Asia for very-large-scale integration, or VLSI, and artificial intelligence and computer vision engineers, and certain of our competitors and potential competitors with greater resources have directly targeted our employees.
In addition, our compensation arrangements, such as our equity award programs, may not always be successful in attracting new employees and retaining and motivating our existing employees.
36 unchanged sentences
We depend on these third parties to supply us with material of a requested quantity in a timely manner that meets our standards for yield, cost and manufacturing quality.
+Added: Availability of capacity within our supply chain has tightened recently, which could limit the volume of products we can produce and negatively impact our business and operations.
We do not have any long-term supply agreements with any of our manufacturing suppliers.
181 unchanged sentences
Any disruption in our services or operations could result in a reduction in revenue or a claim for substantial damages against us, regardless of whether we are responsible for that failure.
−Removed: The outbreak of COVID-19 has resulted in significant governmental measures being implemented to control the spread of the virus, including, among others, restrictions on travel, manufacturing and the movement of employees in many regions of the world, and the imposition of remote or work from home conditions in many of our offices, including the United States.
−Removed: If the remote or work from home conditions continue for an extended period of time, we may experience delays in product development, a decreased ability to support our customers, reduced design win activity, and overall lack of productivity.
+Added: The outbreak of COVID-19 has resulted in significant governmental measures being implemented to control the spread of the virus, including, among others, restrictions on travel, manufacturing and the movement of employees in many regions of the world, and the imposition of remote or work from home conditions in many of our offices, including the United States and Italy.
+Added: If the remote or work from home conditions continue for an extended period of time, or similar restrictions and measures are implemented in more of the locations where we have offices, we may experience delays in product development, a decreased ability to support our customers, reduced design win activity, and overall lack of productivity.
We rely on our computer equipment, database storage facilities and other office equipment, which are located primarily in the seismically active San Francisco Bay Area and Taiwan.
11 unchanged sentences
These accounting principles are subject to interpretation by the American Institute of Certified Public Accountants, the SEC and various bodies formed to interpret and create accounting rules and regulations.
−Removed: Changes in those accounting rules, including the new revenue recognition guidance and the associated adoption efforts, which are currently underway, could have a significant effect on our financial results, require significant resources, pose challenges in forecasting revenue and may affect our reporting of transactions completed before a change is announced.
+Added: Changes in those accounting rules could have a significant effect on our financial results, require significant resources, pose challenges in forecasting revenue and may affect our reporting of transactions completed before a change is announced.
Changes to those rules or the questioning of current practices may adversely affect our reported financial results or the way we conduct our business.
63 unchanged sentences
subsidiaries, were considered a CFC, which is a determination made daily based on whether the 10% U.S.
−Removed: shareholders together own, or are considered to own as a result of the attribution rules, more than fifty percent of the voting power or value of a non-U.S.
+Added: shareholders together own, or are considered to own under the attribution rules, more than fifty percent of the voting power or value of a non-U.S.
The Tax Act repealed Internal Revenue Code Section 958(b)(4), which, unless clarified in future regulations or other guidance, may result in classification of certain of the Company’s foreign subsidiaries as CFCs with respect to any single 10% U.S.
10 unchanged sentences
Sales to customers in Asia accounted for approximately 90%, 87% and 79% of our total revenue in fiscal years 2020, 2019 and 2018, respectively.
−Removed: For the three months ended April 30, 2020, sales to customers in Asia accounted for approximately 89% of our total revenue.
+Added: For the six months ended July 31, 2020, sales to customers in Asia accounted for approximately 87% of our total revenue.
Because most of our end customers or their ODM manufacturers are located in Asia, we anticipate that a majority of our future revenue will continue to come from sales to that region.
28 unchanged sentences
Our marketable securities portfolio could experience a decline in market value, which could materially and adversely affect our financial results.
−Removed: As of April 30, 2020, we had approximately $211.8 million in debt security investments.
+Added: As of July 31, 2020, we had approximately $214.0 million in debt security investments.
These investments consisted primarily of money market funds, commercial paper, asset-backed securities, U.S.
34 unchanged sentences
If one or more analysts cease coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets which in turn could cause our stock price or trading volume to decline.
−Removed: Our actual operating results may differ significantly from our guidance and investor expectations, which would likely cause our stock price to decline.
+Added: Our actual operating results may not meet or exceed our guidance and investor expectations, which would likely cause our stock price to decline.
From time to time, we may release guidance in our earnings releases, earnings conference calls or otherwise, regarding our future performance that represent our management’s estimates as of the date of release.
50 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.