What changed in this filing

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Item 1A. Risk Factors

2025-04-25 compared with 2025-01-31 · 30 added, 23 removed, 451 unchanged (11% of the section changed)

102 unchanged sentences

• legal, tax, accounting, or regulatory changes (including, but not limited to, changes in import/export regulations and tariffs, such as regulations imposed by the U.S.

government restricting exports to China, or potential additional tariffs on imports) or changes in the interpretation or enforcement of existing requirements;

government restricting exports to China, or potential additional tariffs on imports, and tariffs imposed by other countries) or changes in the interpretation or enforcement of existing requirements;

• macroeconomic, industry and market conditions, including those caused by war, conflict in the Middle East, bank failures;

uncertainty regarding economic and other policies and priorities;

and geopolitical issues;

• the impact of reductions in government spending;

• changes in average selling prices, customer mix, and product mix;

27 unchanged sentences

In addition, to the extent AI capabilities improve and are increasingly adopted, they may be used to identify vulnerabilities and to implement increasingly sophisticated cybersecurity attacks.

Further, the use of AI by us, our customers, suppliers, and third-party providers, among others, may also introduce unique vulnerabilities whose existence or exploitation could have a material adverse effect on our business or operations.

Further, the use of AI by us, our customers,

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suppliers, and third-party providers, among others, may also introduce unique vulnerabilities whose existence or exploitation could have a material adverse effect on our business or operations.

We experience cybersecurity and other threats and incidents in the course of our operations.

19 unchanged sentences

sales, as reflected in Part I Item 2.

Results of Operations of this quarterly report on Form 10-Q, accounted for approximately 89%, 93%, and 91% of total revenue in the six months ended December 29, 2024 and fiscal years 2024, and 2023, respectively.

Results of Operations of this quarterly report on Form 10-Q, accounted for approximately 92%, 93%, and 91% of total revenue in the nine months ended March 30, 2025 and fiscal years 2024, and 2023, respectively.

We expect that international sales will continue to account for a substantial majority of our total revenue in future years.

16 unchanged sentences

A significant trade dispute, impact, and/or disruption in any area where we do business could have a materially adverse impact on our future revenue and profits.

Tariffs, export controls, additional taxes, trade barriers, sanctions, the termination or modification of trade agreements, trade zones, and other duty mitigation initiatives, and any reciprocal retaliatory actions, can increase our manufacturing costs, decrease margins, reduce the competitiveness of our products, disrupt our supply chain operations, or inhibit our ability to sell products or provide services, which has had and in the future could have a material adverse effect on our business, results of operations, or financial

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Certain of our international sales depend on our ability to obtain export licenses from the U.S.

40 unchanged sentences

• volatility in the availability and cost of parts, materials or services, including increased costs due to tariffs, rising inflation or interest rates or other market conditions;

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• difficulties or delays in obtaining required import or export approvals;

• restrictions on the import and sale of products that incorporate technologies developed or manufactured in whole or in part in certain countries;

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• shipment delays and increased costs of shipment due to transportation interruptions, capacity constraints, or fuel shortages;

• shortages of semiconductor or other components or materials as a result of increases in demand;

• shortages of semiconductor or other components or materials as a result of increases in demand or decreases in supply, including as a result of export restrictions on particular parts or materials used by us or our direct or indirect suppliers;

• information technology or infrastructure failures, including those of a third-party supplier or service provider;

23 unchanged sentences

While we maintain business continuity plans, our manufacturing and R&D facilities are concentrated in a limited number of locations.

These locations are subject to disruption for a variety of reasons, such as natural or man-made disasters (including disasters resulting from climate change), including earthquakes, wildfires, hurricanes, flooding, and heat waves, widespread outbreaks of illness, war, terrorist activities, political or governmental unrest or instability, disruptions of our information technology resources, utility interruptions, international conflict, or other events beyond our control.

Such disruptions may cause delays in developing or shipping

These locations are subject to disruption for a variety of reasons, such as natural or man-made disasters (including disasters

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our products, in engaging with customers on new product applications, or in supporting customers, which could result in the loss of business or customer trust, adversely affecting our business and operating results.

resulting from climate change), including earthquakes, wildfires, hurricanes, flooding, and heat waves, widespread outbreaks of illness, war, terrorist activities, political or governmental unrest or instability, disruptions of our information technology resources, utility interruptions, international conflict, or other events beyond our control.

Such disruptions may cause delays in developing or shipping our products, in engaging with customers on new product applications, or in supporting customers, which could result in the loss of business or customer trust, adversely affecting our business and operating results.

Epidemics, Pandemics or Outbreaks of Diseases May Adversely Impact Our Business, Operations, and Financial Results

28 unchanged sentences

• technological changes that we are unable to address with our products;

• slower than anticipated development of various target markets that utilize new technologies;

• a failure to release new or enhanced versions of our products on a timely basis.

14 unchanged sentences

these governments may fail to issue patents for pending applications;

or we may lose trade secret protection over valuable information due to our or third parties’ intentional or unintentional actions or omissions or even those of our own employees.

Additionally, intellectual property litigation can be expensive and time-consuming and even when patents are issued, or trade secret processes are followed, the legal systems in certain of the countries in which we do business might not enforce patents and other intellectual property rights as rigorously or effectively as the United States or may favor local entities in

or we may lose trade

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their intellectual property enforcement.

secret protection over valuable information due to our or third parties’ intentional or unintentional actions or omissions or even those of our own employees.

The rights granted or anticipated under any of our patents, pending patent applications, copyrights, or trade secrets may be narrower than we expect or, in fact, provide no competitive advantages.

21 unchanged sentences

Compliance obligations, as well as any failure to comply with current or future regulations governing the use, handling, sale, transport, or disposal of hazardous or potentially hazardous substances (including, but not limited to, PFAS) could subject us to future costs and liabilities that may adversely affect our operating results, financial condition, and ability to operate our business.

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Our Sales to Customers in China, a Significant Region for Us, Have Been Impacted, and are Likely to Be Materially and Adversely Affected by Export License Requirements and Other Regulatory Changes, or Other Governmental Actions in the Course of the Trade Relationship Between the U.S.

China represents a large and fast-developing market for the semiconductor equipment industry and therefore is important to our business.

Revenue in China, which includes global customers and domestic Chinese customers with manufacturing facilities in China, represented approximately 34%, 42%, and 26% of our total revenue for the six months ended December 29, 2024 and fiscal years 2024 and 2023, respectively.

Revenue in China, which includes global customers and domestic Chinese customers with manufacturing facilities in China, represented approximately 33%, 42%, and 26% of our total revenue for the nine months ended March 30, 2025 and fiscal years 2024 and 2023, respectively.

and China have historically had a complex relationship that has included actions that have impacted trade between the two countries.

In recent years, these actions have included an expansion of export license

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requirements imposed by the U.S.

In recent years, these actions have included an expansion of export license requirements imposed by the U.S.

government, which have limited the market for our products, adversely impacted our revenues, and increased our exposure to foreign competition, and could potentially do so to an even greater extent in the future.

30 unchanged sentences

and (3) the interpretation and application of laws, rules, and regulations.

As a public company with global operations, we are subject to the laws of multiple jurisdictions and the rules and regulations of various governing bodies, including those related to export controls, financial and other disclosures, corporate governance, privacy, anti-corruption, such as the Foreign Corrupt Practices Act and other local laws prohibiting corrupt payments to governmental officials, anti-boycott compliance, conflict minerals or other social responsibility legislation, immigration or travel regulations, antitrust regulations, and laws or regulations relating to carbon emissions, as well as other laws or regulations imposed in response to climate change concerns, among others.

Each of these laws, rules, and regulations imposes costs on our business, including financial costs and potential diversion of our management’s attention associated with compliance, and may present risks to our business, including potential fines, restrictions on our actions, and reputational damage if we do not fully comply.

As a public company with global operations, we are subject to the laws of multiple jurisdictions and the rules and regulations of various governing bodies, including those related to export controls, financial and other disclosures, corporate governance, privacy, anti-corruption, such as the Foreign Corrupt Practices Act and other local laws prohibiting corrupt payments to governmental officials, anti-boycott compliance, conflict minerals or other social responsibility legislation, immigration or travel regulations, antitrust regulations, and laws or regulations relating to carbon emissions such as the recent reporting requirements imposed by the State of California that will require corporations to provide climate-related disclosures, as well as other laws or regulations imposed in response to climate change concerns, among others.

Each of these laws, rules, and regulations imposes costs on our business, including financial costs and

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potential diversion of our management’s attention associated with compliance, and may present risks to our business, including potential fines, restrictions on our actions, and reputational damage if we do not fully comply.

To maintain high standards of corporate governance and public disclosure, we intend to invest appropriate resources to comply with evolving standards.

2 unchanged sentences

If we are found by a court or regulatory agency not to be in compliance with the laws and regulations, our business, financial condition, and/or results of operations could be adversely affected.

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Our Financial Results May Be Adversely Impacted by Higher than Expected Tax Rates or Exposure to Additional Tax Liabilities

26 unchanged sentences

• general market, semiconductor, or semiconductor equipment industry conditions;

• economic or political events, trends, and unexpected developments occurring nationally, globally, or in any of our key sales regions;

• economic or political events, trends, and unexpected developments occurring nationally, globally, or in any of our key sales regions such as uncertainty regarding economic and other policies and priorities;

• macroeconomic, industry and market conditions, including those caused by war, conflict in the Middle East, or bank failures;

and geopolitical issues;

• the impact of reductions in government spending;

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• variations in our quarterly operating results and financial condition, including our liquidity;

7 unchanged sentences

• disruptions of relationships with key customers or suppliers.

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In addition, the stock market experiences significant price and volume fluctuations.

27 unchanged sentences

As a result, we may need to enter into new financing arrangements to obtain the necessary funds.

If we determine it is necessary to seek additional funding for any reason, we may not be able to obtain such funding or, if funding is available, obtain it on acceptable terms.

If we determine it is necessary to seek additional funding for any reason, we may not be able to obtain such funding or, if

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funding is available, obtain it on acceptable terms.

If we fail to make a payment on our debt, we could be in default on such debt, and this default could cause us to be in default on our other outstanding indebtedness.

4 unchanged sentences

• enter into transactions with our affiliates;

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• change the nature of our business;

20 unchanged sentences

In the event of default or failure of one or more of our counterparties, we could incur significant losses, which could negatively impact our results of operations and financial condition.

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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.

What changed 10-Q

Item 1A. Risk Factors