3 unchanged sentences
Economic, Industry, and Operational Risks
−Removed: We depend on a small number of customers for a significant portion of our revenue and loss of any customer could significantly affect our business.
+Added: We depend on a small number of customers for a significant portion of our revenue and the loss of any customer could significantly affect our business.
Both the HPP and TS segments are reliant upon a small number of significant customers, and the loss of or significant reduction in sales to any one of which could have a material adverse effect on our business.
−Removed: For the fiscal year ended September 30, 2022, one customer accounted for $10.4 million, or 19%, of our total revenues for the fiscal year.
For the fiscal year ended September 30, 2023, no one customer accounted for 10% or more of our total revenues for the fiscal year.
+Added: For the fiscal year ended September 30, 2022, one customer accounted for $10.4 million, or 19%, of our total revenues for the fiscal year.
In addition, our revenues are largely dependent upon the ability of our customers to continue to grow or need services or to develop and sell products that incorporate our products.
5 unchanged sentences
Our future success will depend to a significant extent on our ability to attract, train, motivate and retain highly skilled technical professionals.
−Removed: 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.
+Added: 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 skills that keep pace with continuing changes in our industry standards and technologies.
The inability to hire additional qualified personnel could impair our ability to satisfy or grow our client base.
21 unchanged sentences
If any of our products or third-party components used in our products, contain defects or bugs, or have reliability, quality or compatibility problems, we may not be able to successfully design workarounds.
−Removed: Furthermore, if any of these problems are not discovered until after we have commenced commercial production or deployment of a new product, we may be required to incur additional development costs and product recall,
−Removed: repair or replacement costs.
+Added: Furthermore, if any of these problems are not discovered until after we have commenced commercial production or deployment of a new product, we may be required to incur additional development costs and product recall, repair or replacement costs.
Significant technical challenges also arise with our software products because our customers license and deploy our products across a variety of computer platforms and integrate them with a number of third-party software applications and databases.
7 unchanged sentences
Several components used in our HPP products are currently obtained from sole-source suppliers.
−Removed: We are dependent on key vendors like NVIDIA for our high-speed interconnect components and Marvel for Myricom components.
+Added: We are dependent on key vendors like NVIDIA for our high-speed interconnect components.
Generally, suppliers may terminate our purchase orders without cause upon 30 days’ notice and may cease offering products to us upon 180 days’ notice.
−Removed: To the extent our key vendors, such as NVIDIA and Marvel 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, 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: To the extent our key vendors, such as NVIDIA 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, 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.
11 unchanged sentences
In addition, there are certain risks inherent in transacting business internationally, such as changes in applicable laws and regulatory requirements, export and import restrictions, export controls relating to technology, tariffs and other trade barriers, longer payment cycles, problems in collecting accounts receivable, political instability, fluctuations in currency exchange rates, expatriation controls and potential adverse tax consequences, any of which could adversely impact the success of our international activities.
−Removed: In particular, it is possible activity in the United Kingdom and the rest of Europe will be adversely impacted and that we will face increased regulatory and legal complexities, including those related to tax, trade, and
−Removed: employee relations as a result of Brexit.
+Added: In particular, it is possible activity in the United Kingdom and the rest of Europe will be adversely impacted and that we will face increased regulatory and legal complexities, including those related to tax, trade, and employee relations as a result of Brexit.
A portion of our revenues are from sales to foreign entities, including foreign governments, which are primarily paid in the form of foreign currencies.
12 unchanged sentences
(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;
−Removed: (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.
−Removed: As a result of the World Health Organization characterizing the COVID-19 outbreak as a pandemic on March 11, 2021, national, state, and local governments have taken actions such as declaring a state of emergency, establishing social distancing guidelines, and shutting down certain businesses which are not considered essential in part or entirely.
−Removed: The Company has complied with such actions causing most employees to work remotely in all locations.
−Removed: Such measures could have a material adverse effect on our business, financial condition and results of operations.
+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
+Added: 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.
Government Contracting Risks
5 unchanged sentences
Because we derive a significant percentage of our revenue from contracts with the federal government, changes in federal government budgetary priorities could directly affect our financial performance.
−Removed: A significant decline in government expenditures, a shift of expenditures away from programs that we support or a change in federal government
−Removed: 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.
+Added: 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.
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.
45 unchanged sentences
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’ purchasing patterns could have a material adverse effect on our operating results and reported earnings per share for a particular
+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.
23 unchanged sentences
If we experience a local or regional disaster or other business continuity problem, such as a hurricane, earthquake, terrorist attack, pandemic or other natural or man-made disaster, our continued success will depend, in part, on the availability of our personnel, our office facilities, and the proper functioning of our computer, telecommunication and other related systems and operations.
−Removed: As we attempt to grow our operations, the potential for particular types of natural or man-made disasters, political, economic or infrastructure instabilities, or other country- or region-specific business continuity risks increases.
+Added: As we grow our operations, the potential for particular types of natural or man-made disasters, political, economic or infrastructure instabilities, or other country- or region-specific business continuity risks increases.
If we suffer any data breaches involving the designs, schematics, or source code for our products or other sensitive information, our business and financial results could be adversely affected.
9 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 help us minimize or avoid such impact in the future.
+Added: Prior cyber attacks directed at us have not had a material
+Added: 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.
6 unchanged sentences
The global economy has been negatively impacted by the military conflict between Russia and Ukraine.
−Removed: Furthermore, governments in the United States, United Kingdom and European Union have each imposed export controls
−Removed: on certain products and financial and economic sanctions on certain industry sectors and parties in Russia.
+Added: Furthermore, governments in the United States, United Kingdom and European Union have each imposed export controls on certain products and financial and economic sanctions on certain industry sectors and parties in Russia.
Although we do not have significant customers or suppliers in Russia or Ukraine, we do have customers and suppliers in surrounding regions which may be affected.
Further escalation of Russian-Ukraine military conflict and geopolitical tensions related to such military conflict, including increased trade barriers or restrictions on global trade, could result in, among other things, cyber attacks, supply disruptions, lower consumer demand, and changes to foreign exchange rates and financial markets, any of which may adversely affect our business, financial condition and results of operations.
−Removed: The effects of the ongoing conflict could heighten many of our known risks described in section entitled "Risk Factors"
−Removed: in Part I, Item 1A in this Annual Report on Form 10-K for the fiscal year ended September 30, 2022.
+Added: The effects of the ongoing conflict could heighten many of our known risks described in these "Risk Factors.”
+Added: Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by the ongoing conflict between Israel and Hamas.
+Added: The global economy has been negatively impacted by the military conflict between Israel and Hamas.
+Added: There could be an expansion of the countries involved, which could lead to significant detrimental effects to the global economy.
+Added: Although we do not have significant customers or suppliers in the Middle East region, we do have customers and suppliers in surrounding regions which may be affected.
+Added: Further escalation of the Israel and Hamas conflict and geopolitical tensions related to such military conflict, including increased trade barriers or restrictions on global trade, could result in, among other things, cyber attacks, supply disruptions, lower consumer demand, and changes to foreign exchange rates and financial markets, any of which may adversely affect our business, financial condition and results of operations.
+Added: The effects of the ongoing conflict could heighten many of our known risks described in these "Risk Factors.”
Legal and Regulatory Risks.
25 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.