6 unchanged sentences
Except as set forth below, there has been no material change to our Risk Factors from those presented in our 2021 Annual Report.
−Removed: New and ongoing challenges relating to current supply chain constraints, including for satellite ground station and troposcatter components, could adversely impact our revenue, gross margins and financial results.
+Added: Although we have lowered our expected fiscal 2022 targets as a result of the conditions described in our Risk Factors, including the following Risk Factors, reliable forecasting continues to be a challenge.
+Added: If for any reason we are not able to anticipate and manage these and other risks effectively, our expected fiscal 2022 targets may not be achievable.
+Added: New and ongoing challenges relating to current supply chain constraints and impacts from inflation, including for satellite ground station and troposcatter components, could adversely impact our revenue, gross margins and financial results.
The global supply chain for certain raw materials and components, including those used in our satellite ground station and troposcatter equipment, has experienced significant strain in recent periods.
−Removed: This constrained supply environment has adversely affected, and could further affect, availability, lead times and cost of components, and could impact our ability to meet customer demand in circumstances where we cannot timely secure supply of components that meet our quality standards.
−Removed: In December 2021 and January 2022, the Omicron COVID-19 strain surged across Europe and the U.S.
−Removed: causing further delays in the supply chain.
+Added: The constrained supply environment has adversely affected, and could further affect, availability and lead times of raw materials and components, thereby impeding our ability to meet customer demand in circumstances where we cannot timely secure supply of components that meet our quality standards.
+Added: Even when raw materials and components are available, they often come with higher prices reflecting an imbalance between supply and demand, as well as inflationary pressures affecting global markets.
+Added: In the past several months, variants of COVID-19 surged across Europe, the U.S.
+Added: and China, causing further delays in the supply chain.
Despite our attempts to mitigate the impact on our business, constrained supply conditions have and are expected to continue to adversely impact our costs of goods sold and may impact the timing and amount of revenue we realize.
−Removed: During the second quarter of fiscal 2022, we experienced disruptions in our supply chain relating to later-than-expected delivery of certain key components from several suppliers that adversely impacted our revenue for the second quarter of fiscal 2022.
+Added: During the second and third quarters of fiscal 2022, we experienced disruptions in our supply chain relating to later-than-expected delivery of certain key components from several suppliers that adversely impacted our revenue for the second and third quarters of fiscal 2022.
In addition, certain parts did not meet our quality specifications and we were unable to use them.
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In some cases, we have now depleted our stock inventory and we are on waiting lists to obtain additional components.
−Removed: Although we have reduced our 2022 financial targets to consider supply chain risks, in order to ship certain items during our second half of fiscal 2022, we must obtain additional components to produce certain finished goods.
+Added: Although we have reduced our fiscal 2022 financial targets to account for supply chain risks, in order to ship certain items during our fourth quarter of fiscal 2022, we must obtain additional components to produce certain finished goods.
We continue to seek new suppliers and inventory elsewhere.
Although we had been successful in the past in qualifying alternate suppliers, when necessary, in light of current challenges in the supply chain, we may not be able to do so.
−Removed: In February 2022, Russia’s military incursion into Ukraine has also exacerbated supply chain issues.
+Added: In February 2022, Russia’s military incursion into Ukraine exacerbated supply chain issues.
In response to Russia’s actions, many governments around the world have imposed sanctions on Russia and many businesses have suspended or stopped doing business with Russia.
Limits on manufacturing availability or capacity, or delays in production or delivery of components or raw materials due to these sanctions or suspension of business could further delay or inhibit our ability to obtain supply of components and produce finished goods.
−Removed: Heading into the third quarter of our fiscal 2022, we have a significant portion of our Q3 and Q4 targeted revenues in our backlog.
+Added: Heading into the fourth quarter of our fiscal 2022, we have a significant portion of our fourth quarter's targeted revenues in our backlog.
However, if shipments from our backlog are delayed or we are unable to obtain expected orders or components, our business outlook will prove to be inaccurate.
6 unchanged sentences
We may also be the subject of increased cyber-attacks.
−Removed: To date, Russia’s military incursion into Ukraine has impacted our sales pipeline.
−Removed: Although sales into Russia represented less than 1.0% of our consolidated net sales in both fiscal 2021 and in the six months ended January 31, 2022, respectively, certain customers (including the U.S.
+Added: The military conflict between Russia and Ukraine has impacted our sales pipeline and continues to have significant repercussions for our business.
+Added: Although sales into Russia represented approximately 1.0% of our consolidated net sales in both fiscal 2021 and in the nine months ended April 30, 2022, consolidated net sales into Russia in fiscal 2022 and beyond were expected to significantly grow.
+Added: As a result of the economic sanctions against Russia, we are assuming no new sales in Russia for the remainder of fiscal 2022 and the foreseeable future.
+Added: As a result of this conflict, certain customers (including the U.S.
and Ukrainian government) have paused procurement and deployment of satellite and troposcatter communication systems, and instead began purchasing war-fighting equipment.
−Removed: As a result of the economic sanctions against Russia, we are assuming no new sales in Russia for the remainder of fiscal 2022.
−Removed: In addition, the U.S.
−Removed: defense budget, and defense budgets worldwide, are now being adjusted in real-time to reflect spending plans materially different from those of just three months ago.
−Removed: This has impacted our original fiscal 2022 financial targets.
+Added: defense budget, and defense budgets worldwide, are being adjusted in real-time to reflect spending plans materially different from those of just six months ago.
For example, we had several opportunities to provide wireless communication systems (including troposcatter systems) to Ukraine for a variety of both defense and communications uses.
2 unchanged sentences
As result of the conflict in Ukraine, it has now become impossible for us to predict the timing or dollar amount of these awards.
−Removed: Additionally, funding for opportunities with other customers that we expected to book and ship has also been shifted to other programs and/or temporarily delayed as a result of a change in defense spending priorities.
+Added: Additionally, funding for opportunities with other customers that we expected to book and ship has also been shifted to other programs and/or temporarily delayed as a result of changes in defense spending priorities.
Prior to this conflict, we maintained a small group of employees in Moscow, Russia who supported certain UHP-branded satellite communications products.
−Removed: We are actively hiring new employees and expanding our Canadian operations to replace certain support activities previously conducted in Russia.
−Removed: We may not be able to timely ramp up our operations in Canada on a sufficient scale to support anticipated growth of our UHP products, which could adversely impact future revenues, gross margins and operations.
−Removed: Although we have lowered our expected second half fiscal 2022 targets as a result of the aforementioned conditions, additional risks still remain and reliable forecasting continues to be a challenge.
−Removed: The success of our operations will depend, in large part, on our ability to anticipate and manage these risks effectively.
−Removed: Our failure to manage any of these risks could harm our operations, reduce our sales, and could give rise to liabilities, costs or other business difficulties that could adversely affect our operations and financial results.
+Added: We are actively hiring new employees, expanding our Canadian operations and shifting certain commercial software development and support activities outside of Russia.
+Added: However, as we are currently in an environment where software engineering talent is already in high demand and commands a premium, we expect to incur additional annual expenses.
+Added: We may not be able to timely ramp up our operations in Canada or elsewhere on a sufficient scale to support anticipated growth of our UHP products, which could adversely impact future revenues, gross margins and operations.
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.