QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Foreign Currency Exchange Rates
+Added: Foreign Currency Exchange Rate Risks
Our results of operations could be affected by factors such as changes in foreign currency rates or weak economic conditions in foreign markets.
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If we believe currency risk in any foreign location or with respect to specific sales or purchase transactions is significant, we utilize foreign exchange hedging contracts to manage our exposure to the currency fluctuations.
−Removed: There were no foreign currency agreements outstanding as of April 26, 2025.
+Added: There were no foreign
+Added: currency agreements outstanding as of May 2, 2026.
These contracts are marked to market each balance sheet date and are not designated as hedges.
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Over the long term, net sales to international markets are expected to increase as a percentage of total net sales and, consequently, a greater portion of our business could be denominated in foreign currencies.
−Removed: As a result, operating results may become more subject to fluctuations based upon changes in the exchange rates of certain currencies in relation to the
−Removed: United States dollar.
+Added: As a result, operating results may become more subject to fluctuations based upon changes in the exchange rates of certain currencies in relation to the United States dollar.
To the extent we engage in international sales denominated in United States dollars, an increase in the value of the United States dollar relative to foreign currencies could make our products less competitive in international markets.
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These accounts are impacted by changes in foreign currency rates.
−Removed: Of our $127.5 million in cash balances as of April 26, 2025, $112.8 million were denominated in United States dollars, of which $0.9 million were held by our foreign subsidiaries.
−Removed: As of April 26, 2025, we had an additional $14.7 million in cash balances denominated in foreign currencies, of which $12.3 million was maintained in accounts of our foreign subsidiaries.
+Added: As of May 2, 2026, of our $131.6 million in cash and cash equivalents, $121.9 million was denominated in United States dollars, of which $9.8 million was held by our foreign subsidiaries, and $9.7 million was denominated in foreign currencies, of which $7.6 million was maintained in accounts of our foreign subsidiaries.
Interest Rate Risks
−Removed: Our exposure to market risks relate primarily to changes in interest rates on our financing agreements, cash, and marketable securities.
−Removed: We do not expect our income or cash flows to be significantly impacted by interest rates.
−Removed: Commodity Risk
+Added: Our exposure to market risks relates primarily to changes in interest rates on our financing agreements, cash, and marketable securities.
+Added: These securities are subject to interest rate risk, decreasing in value if market interest rates increase and increasing in value if market interest rates decrease.
+Added: Due to the relatively short-term nature of our investment portfolio, we believe that an immediate change in interest rates will not have a material impact on the fair value of our available-for-sale securities.
+Added: For information regarding our available-for-sale securities, see our Consolidated Statements of Comprehensive Income (Loss), our Consolidated Statements of Stockholders’ Equity, and Note 1 to our Consolidated Financial Statements in Part II, Item 8 of this Form 10-K.
+Added: Because our borrowings under our financing agreements are minimal, a change in the interest rates for such borrowings would not have a material impact.
+Added: However, if our borrowings increase materially, a change in interest rates under our financing agreements may affect our financial results.
+Added: Commodity Price and Availability Risk
We are dependent on basic raw materials, sub-assemblies, components, and other supplies used in our production operations.
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Some of these materials are also key source materials for our competitors and for other technology companies.
−Removed: Some of these materials are sourced outside of the countries in which we manufacture our products and are subject to transportation delays.
+Added: These materials may also be sourced outside of the countries in which we manufacture our products and are subject to transportation delays.
Any of these factors may cause a sudden increase in costs and/or limited or unavailable supplies.
−Removed: As a result, we may not be able to acquire key production materials on a timely basis, which could adversely impact our ability to produce products and satisfy incoming sales orders on a timely basis.
+Added: As a result, we may not be able to acquire key production materials on a timely basis or at a reasonable cost, which could adversely impact our ability to produce products and satisfy incoming sales orders on a timely basis.
Our sourcing and material groups work to implement strategies to monitor and mitigate these risks.
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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.