−Removed: The Company may incur material losses and costs as a result of defects in its products, including as a result of warranty claims, product recalls, and product liability.
−Removed: The Company has been notified by one of its customers of a product recall potentially due to certain fuses provided by the Company and incorporated in the customer’s products.
−Removed: The Company is working with its customer to investigate the cause and level of responsibility for this recall.
−Removed: Given the highly complex products that the Company manufactures, it is possible that those products, including third-party components contained in those products, may contain defects or fail to work properly or as intended when integrated with customer products.
−Removed: This could subject the Company to product liability or warranty claims, which could lead to significant expenses, including recall, repair, and/or replacement costs and, potentially breach of contract or other damage claims, all of which could materially adversely affect the Company’s financial results.
−Removed: This is particularly true if the Company does not discover these issues until after the products have been sold and deployed.
−Removed: In addition to expenses directly attributable to product defects, the Company’s reputation and ability to attract and retain customers may be harmed.
−Removed: Further, significant warranty and product liability claims may, among other things, result in the need for significant reserves, divert management’s and other personnel’s attention, cause production delays, impact on-time delivery of products to other customers, reduce margins, and delay recognition of revenues.
−Removed: It is also possible that end users of customers’ products may make claims against the Company, resulting in additional defense costs and potential damages.
−Removed: Although, the Company generally attempts to limit its liability through standard contract terms and conditions and maintains insurance in connection with product defects and warranty claims, it is possible that the Company may not be able to enforce contractual limitations on damages and/or that a successful claim against the Company may exceed the Company’s applicable insurance policy limits or be excluded from coverage.
+Added: Changes in U.S.
+Added: and other countries trade policy, including the imposition of tariffs and the resulting consequences and uncertainties, may have a material adverse impact on our business and results of operations.
+Added: Our international presence subjects us to risks associated with international trade conflicts between the United States and its trade partners, particularly with regard to the risk of heightened tariffs and import/export controls.
+Added: Recently, the U.S.
+Added: government has imposed extensive tariffs on several countries, including, without limitation, China, Mexico and Canada, as well as certain broad, product-specific tariffs on foreign goods and products.
+Added: Tariffs may increase the cost of materials in our supply chain, incur reciprocal levies on components and finished products exported to or imported from affected countries, and have an adverse impact on our cost of goods sold in the U.S.
+Added: These factors in turn could require us to materially increase prices to our customers which may reduce demand, or, if we do not or are unable to increase prices, could result in lower margins on products sold.
+Added: Additionally, the adoption or threat of adoption of extensive tariffs could result in an economic slowdown, a significant reduction in consumer confidence, and an increased risk of inflationary pressure, all of which, either separately or together, could adversely affect our business.
+Added: Tariffs have resulted in China and other countries imposing reciprocal tariffs on U.S.
+Added: goods and ceasing sales of certain products to the U.S.
+Added: and could result in more U.S.
+Added: trading partners adopting responsive trade policies, including making it more difficult or costly for us to export our products to those countries.
+Added: Sales to customers outside of the U.S., and to China in particular, comprise a significant portion of our net sales, and reciprocal tariffs may impact our business in China.
+Added: Continued geopolitical issues and barriers to trade may result in customers outside the U.S.
+Added: seeking to source products from local suppliers, which could further result in lower sales or lost customers.
+Added: Further, tariffs and trade policies may continue to change quickly and without warning, and we may not be able to accurately anticipate and mitigate the impacts.
Other than the item listed above, there have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K for our year ended December 28, 2024.
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.