13 unchanged sentences
Our ability to maintain and renew existing engagements and obtain new business depends, in large part, on our ability to hire and retain technical personnel with the skills that keep pace with continuing changes in our industry standards and technologies.
−Removed: The inability to hire additional qualified personnel could impair our ability to
−Removed: satisfy or grow our client base.
+Added: The inability to hire additional qualified personnel could impair our ability to satisfy or grow our client base.
There can be no assurance that we will be successful in retaining current or future employees.
3 unchanged sentences
Commercial success depends on many factors, including innovativeness, developer support, and effective distribution and marketing.
−Removed: If customers do not perceive our latest offerings as providing significant new functionality or other value, they may reduce their purchases of new software and hardware products or upgrades, unfavorably affecting revenue.
+Added: If customers do not perceive our latest offerings as
+Added: providing significant new functionality or other value, they may reduce their purchases of new software and hardware products or upgrades, unfavorably affecting revenue.
We may not achieve significant revenue from new product, service, and distribution channel investments for several years.
3 unchanged sentences
Significant delays in new releases or significant problems in creating new products or services could adversely affect our revenue.
−Removed: We depend on contracts with the federal government, primarily with the Department of Defense ("DoD"), for a significant portion of our revenue, and our business could be seriously harmed if the government significantly decreased or ceased doing business with us.
+Added: We depend on contracts with the federal government, primarily with the Department of Defense ("DoD"), for a portion of our revenue, and our business could be seriously harmed if the government significantly decreased or ceased doing business with us.
We derived 6% of our total revenue in fiscal year 2020 and 4% of our total revenue in fiscal year 2019 from the DoD as a subcontractor.
12 unchanged sentences
We are dependent on key vendors like Mellanox Technologies for our high-speed interconnect components.
−Removed: Generally, suppliers may terminate our purchase orders without cause upon 30 days’
−Removed: notice and may cease offering products to us upon 180 days’
−Removed: Although we do not consider the risk of interruption of supply to be a significant risk in the near term, if in the future, Mellanox Technologies were to limit or reduce the sale of such components to us, or if these or other
−Removed: component suppliers, some of which are small companies, were to experience future financial difficulties or other problems which could prevent them from supplying the necessary components, such events could have a material adverse effect on our business, financial condition and results of operations.
+Added: Generally, suppliers may terminate our purchase orders without cause upon 30 days’ notice and may cease offering products to us upon 180 days’ notice.
+Added: Although we do not consider the risk of interruption of supply to be a significant risk in the near term, if in the future, Mellanox Technologies were to limit or reduce the sale of such components to us, or if these or other component suppliers, some of which are small companies, were to experience future financial difficulties or other problems which could prevent them from supplying the necessary components, such events could have a material adverse effect on our business, financial condition and results of operations.
These sole source and other suppliers are each subject to quality and performance risks, materials shortages, excess demand, reduction in capacity and other factors that may disrupt the flow of goods to us or our customers, which thereby may adversely affect our business and customer relationships.
1 unchanged sentence
If our supply arrangements are interrupted, there can be no assurance that we would be able to find another supplier on a timely or satisfactory basis.
−Removed: Any shortage or interruption in the supply of any of the components used in our products, or the inability to procure these components from alternate sources on acceptable terms, could have a material adverse effect on our business, financial condition and results of operations.
+Added: Any shortage or interruption in the supply of any
+Added: of the components used in our products, or the inability to procure these components from alternate sources on acceptable terms, could have a material adverse effect on our business, financial condition and results of operations.
There can be no assurance that severe shortages of components will not occur in the future.
4 unchanged sentences
We market and sell our products in certain international markets and we have established operations in the U.K.
−Removed: The sale of our German operation in fiscal year 2018 is treated as discontinued operations in our 2018 financial statements.
Foreign-based revenue is determined based on the location to which the product is shipped or services are rendered and represented 5% and 8% of our total revenue for the fiscal years ended September 30, 2020 and 2019, respectively.
8 unchanged sentences
We may experience similar security threats at customer sites that we operate and manage as a contractual requirement.
−Removed: Prior cyber attacks directed at us have not had a material adverse impact on our business or our financial results, and we believe that our continuing commitment toward threat detection and mitigation processes and procedures will avoid such impact in the future.
+Added: Prior cyber attacks directed at us have not had a material adverse impact on our business or our financial results, and we believe that our continuing commitment toward threat detection and mitigation processes and procedures will help us minimize or avoid such impact in the future.
Due to the evolving nature of these security threats, however, the impact of any future incident cannot be predicted.
15 unchanged sentences
A significant decline in government expenditures, a shift of expenditures away from programs that we support or a change in federal government contracting policies could cause federal government agencies to reduce their purchases under contracts, to exercise their right to terminate contracts at any time without penalty or not to exercise options to renew contracts.
−Removed: In years when Congress does not complete its budget process before the end of its fiscal year (September 30), government operations are funded through a continuing resolution ("CR") that temporarily funds federal agencies.
+Added: In years when Congress does not complete its budget process before the end of its fiscal year (September 30), government operations are funded through a continuing resolution ("CR") that temporarily funds federal agencies.
Recent CRs have generally provided funding at the levels provided in the previous fiscal year and have not authorized new spending initiatives.
11 unchanged sentences
If the government terminates a contract for convenience, we may recover only our incurred or committed costs, settlement expenses and profit on work completed prior to the termination.
−Removed: If the government terminates a contract for default, we may be unable to recover even those amounts, and instead may be liable for excess costs incurred by the government in procuring undelivered items and services from another source.
+Added: If the government terminates a contract for default, we may be unable to recover even those amounts, and instead may be liable for excess costs incurred by the
+Added: government in procuring undelivered items and services from another source.
Depending on the value of a contract, such termination could cause our actual results to differ materially and adversely from those anticipated.
12 unchanged sentences
Any judgment against us could require substantial payment in damages and could also include an injunction or other court order that could prevent us from offering certain products.
+Added: We need to continue to expend resources on research and development ("R&D") efforts in our HPP segment, to meet the needs of our customers.
+Added: If we are unable to do so, our products could become less attractive to customers and our business could be materially adversely affected.
+Added: Our industry requires a continued investment in R&D.
+Added: As a result of our need to maintain or increase our spending levels for R&D in this area and the difficulty in reducing costs associated with R&D, our operating results could be materially harmed if our revenues fall below expectations.
+Added: In addition, as a result of CSPi’s commitment to invest in R&D, spending as a percent of revenues may fluctuate in the future.
+Added: Further, if we fail to invest sufficiently in R&D or our R&D does not produce competitive results, our products may become less attractive to our customers or potential customers, which could materially harm our business and results of operations.
Our need for continued or increased investment in research and development may increase expenses and reduce our profitability.
1 unchanged sentence
If we fail to invest sufficiently in research and development, our products could become less attractive to potential customers and our business and financial condition could be materially and adversely affected.
−Removed: As a result of the need to maintain or increase spending levels in this area and the difficulty in reducing costs associated with research and development, our operating results could be materially harmed if our research and development efforts fail to result in new products or if revenues fall below expectations.
+Added: As a result of the need to maintain or
+Added: increase spending levels in this area and the difficulty in reducing costs associated with research and development, our operating results could be materially harmed if our research and development efforts fail to result in new products or if revenues fall below expectations.
In addition, as a result of our commitment to invest in research and development, spending levels of research and development expenses as a percentage of revenues may fluctuate in the future.
2 unchanged sentences
Customers specify delivery date requirements that coincide with their need for our products and services.
−Removed: Because these customers may use our products and services in connection with a variety of defense programs or other projects with different sizes and durations, a customer’s orders for one quarter generally do not indicate a trend for future orders by that customer.
+Added: Because these customers may use our products and services in connection with a variety of defense programs or other projects with different sizes and durations, a customer’s orders for one quarter generally do not indicate a trend for future orders by that customer.
As such, we have not been able in the past to consistently predict when our customers will place orders and request shipments so that we cannot always accurately plan our manufacturing, inventory, and working capital requirements.
As a result, if orders and shipments differ from what we predict, we may incur additional expenses and build excess inventory, which may require additional reserves and allowances and reduce our working capital and operational flexibility.
−Removed: Any significant change in our customers’
−Removed: purchasing patterns could have a material adverse effect on our operating results and reported earnings per share for a particular quarter.
+Added: Any significant change in our customers’ purchasing patterns could have a material adverse effect on our operating results and reported earnings per share for a particular quarter.
Thus, results of operations in any period should not be considered indicative of the results to be expected for any future period.
−Removed: High quarterly book-ship ratios may pressure inventory and cash flow management, necessitating increased inventory balances to ensure quarterly revenue attainment.
−Removed: Increased inventory balances tie up additional capital, limiting our operational flexibility.
−Removed: Some of our customers may have become conditioned to wait until the end of a quarter to place orders in the expectation of receiving a discount.
−Removed: Customers conditioned to seek quarter-end discounts increase risk and uncertainty in our financial forecasting and decrease our margins and profitability.
Our quarterly results may be subject to fluctuations resulting from a number of other factors, including:
17 unchanged sentences
Expense levels for these programs are based, in significant part, on expectations of future revenues.
−Removed: If actual quarterly revenues are below management’s expectations, our results of operations will likely be adversely affected.
+Added: If actual quarterly revenues are below management’s expectations, our results of operations will likely be adversely affected.
Further, the preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates, and changes in estimates in subsequent periods could cause our results of operations to fluctuate.
−Removed: Changes in regulations could materially adversely affect us.
−Removed: Our business, results of operations, or financial condition could be materially adversely affected if laws, regulations, or standards relating to us or our products are newly implemented or changed.
−Removed: In addition, our compliance with existing regulations may have a material adverse impact on us.
−Removed: Under applicable federal securities laws, we are required to evaluate and determine the effectiveness of our internal control structure and procedures.
−Removed: If we have a material weakness in our internal controls, our results of operations or financial condition may be materially adversely affected or our stock price may decline.
If we experience a disaster or other business continuity problem, we may not be able to recover successfully, which could cause material financial loss, loss of human capital, regulatory actions, reputational harm, or legal liability.
4 unchanged sentences
A breach, whether physical, electronic or otherwise, of the systems on which this sensitive data is stored could lead to damage or piracy of our products.
−Removed: If we are subject to data security breaches from external sources or from an insider threat, we may have a loss in sales or increased costs arising from the restoration or implementation of additional security measures, either of which could adversely affect our business and financial results.
+Added: If we are subject to data security breaches from external sources or from an insider threat, we may have a loss in sales or increased costs arising from the restoration or implementation of additional security measures, either of which could adversely affect our business, financial condition, and results of operations.
Other potential costs could include loss of brand value, incident response costs, loss of stock market value, regulatory inquiries, litigation, and management distraction.
1 unchanged sentence
Similarly, a breach that involved loss of customer-provided data could subject us to loss of a customer, loss of a contract, litigation costs and legal damages, and reputational harm.
−Removed: We need to continue to expend resources on research and development ("R&D") efforts, particularly our HPP segment, to meet the needs of our customers.
−Removed: If we are unable to do so, our products could become less attractive to customers and our business could be materially adversely affected.
−Removed: Our industry requires a continued investment in R&D.
−Removed: As a result of our need to maintain or increase our spending levels for R&D in this area and the difficulty in reducing costs associated with R&D, our operating results could be materially harmed if our revenues fall below expectations.
−Removed: In addition, as a result of CSPI’s commitment to invest in R&D, spending as a percent of revenues may fluctuate in the future.
−Removed: Further, if we fail to invest sufficiently in R&D or our R&D does not produce competitive results, our products may become less attractive to our customers or potential customers, which could materially harm our business and results of operations.
−Removed: Our business could be adversely impacted if we have deficiencies in our disclosure controls and procedures or internal controls over financial reporting.
+Added: Changes in regulations could materially adversely affect us.
+Added: Our business, results of operations, or financial condition could be materially adversely affected if laws, regulations, or standards relating to us or our products are newly implemented or changed.
+Added: In addition, our compliance with existing regulations may have a material adverse impact on us.
+Added: Under applicable federal securities laws, we are required to evaluate and determine the effectiveness of our internal control structure and procedures.
+Added: If we have a material weakness in our internal controls, our results of operations or financial condition may be materially adversely affected, or our stock price may decline.
+Added: Based on the evaluation of our disclosure controls and procedures as of September 30, 2020, the Company concluded that, as of such date, our disclosure controls and procedures were not effective.
+Added: See details in Item 9A.
+Added: Our management conducted an evaluation of the effectiveness of our internal control over financial reporting and concluded that our internal control over financial reporting was not effective as of September 30, 2020.
+Added: Our business could be adversely impacted if we have deficiencies in our disclosure controls and procedures or internal controls over financial reporting and we may not be able to accurately report our financial results or prevent fraud.
+Added: Our management identified a material weakness in internal controls as of September 30, 2020.
+Added: The material weakness is in connection with internal controls over the revenue recognition process, specifically the failure to properly identify whether the Company was to be considered the principal or the agent in certain transactions.
+Added: A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected in a timely basis.
Effective internal control over financial reporting and disclosure controls and procedures are necessary for us to provide reliable financial and other reports and effectively prevent fraud.
1 unchanged sentence
If we cannot maintain effective internal control over financial reporting or disclosure controls and procedures, or provide reliable financial statements or SEC reports or prevent fraud, investors may lose confidence in our reported financial information, our common stock could be subject to delisting on the stock exchange where it is traded, our operating results and the trading price of our common stock could suffer and we might become subject to litigation.
+Added: We will take initiatives to improve our internal control over financial reporting and disclosure controls.
+Added: For details on these initiatives, see Item 9A.
While our management will continue to review the effectiveness of our internal control over financial reporting and disclosure controls and procedures, there is no assurance that our disclosure controls and procedures or our internal control over financial reporting will be effective in accomplishing all control objectives, including the prevention and detection of fraud, all of the time.
15 unchanged sentences
These broad market and industry factors may materially adversely affect the market price of our common stock, regardless of our actual operating performance.
−Removed: In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been instituted against such companies.
+Added: In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been instituted against such companies.
If any shareholders were to issue a lawsuit, we could incur substantial costs defending the lawsuit and the attention of management could be diverted.
+Added: Pandemics, epidemics or disease outbreaks, such as the novel coronavirus (“COVID-19”), may materially adversely affect our business, results of operations, cash flows and financial condition.
+Added: Pandemics, epidemics, or disease outbreaks, such as COVID-19 may cause harm to us, our employees, our clients, our vendors and supply chain partners, and financial institutions, which could have a material adverse effect on our business, results of operations, cash flows, and financial condition.
+Added: The impact of a pandemic, epidemic, or other disease outbreak, such as COVID-19, may include, but would not be limited to:
+Added: (i) disruption to operations due to the unavailability of employees due to illness, quarantines, risk of illness, travel restrictions or factors that limit our existing or potential workforce;
+Added: (ii) volatility in the demand for or availability of our products and services, (iii) inability to meet our customers’ needs due to disruptions in the manufacture, sourcing and distribution of our products and services, or (iv) failure of third parties on which we rely, including our suppliers, clients, and external business partners, to meet their obligations to us, or significant disruptions in their ability to do so.
+Added: As a result of the World Health Organization characterizing the COVID-19 outbreak as a pandemic on March 11, 2020, national, state, and local governments have taken actions such as declaring a state of emergency, social distancing guidelines, and shutting down certain businesses which are not considered essential in part or entirely.
+Added: The Company has complied with such actions causing most employees to work remotely in all locations.
+Added: Such measures could have a material adverse effect on our business, financial condition and results of 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.