−Removed: Other than as noted below, there have been no material changes to the risk factors presented in our Annual Report on Form 10-K for the fiscal year ended June 28, 2024.
−Removed: For further discussion of our risk factors, refer to the section titled Risk Factors in our 2024 Annual Report on Form 10-K.
−Removed: See also Part I Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this Quarterly Report on Form 10-Q for additional information regarding risks related to tariffs.
−Removed: Current trade policies could increase the cost of our manufacturing operations, potentially reducing our gross margins and demand for our products.
−Removed: There is substantial current uncertainty with respect to trade policies and treaties between the U.S.
−Removed: and other countries.
−Removed: has recently announced a broad increase in tariffs on imported components, subject to limited exceptions.
−Removed: trading partners have announced retaliatory tariffs in response.
−Removed: As a result, we are exposed to increased tariffs with respect to products and components that we import into the U.S.
−Removed: Our gross margins could be reduced, potentially significantly, in the event we are unable to recover tariffs or duties from our customers.
−Removed: Further, although we are required to pay tariffs upon importation of the components, we may not be able to recover these amounts from our customers until sometime later, if at all, which could materially adversely impact our operating cash flow in a given period.
−Removed: Any significant increase in the price of our products due to increased costs may result in a reduction in demand from our customers at such higher prices.
−Removed: The impact of any tariff increases will depend on various factors, including if such increases are ultimately implemented, the timing of implementation, contractual terms and the amount, scope and nature of the tariffs.
−Removed: Tariffs and other restrictive trade measures may require us to take various actions, including changing suppliers and altering business relationships.
−Removed: Changing our operations in accordance with new or evolving trade restrictions can be expensive, time-consuming, disruptive to our operations and distracting to management.
−Removed: Tariffs and trade restrictions can be announced with little or no advanced notice, and we may not be able to effectively mitigate all adverse impacts from such measures.
+Added: The following risk factor supplements the risk factors included in our Annual Report on Form 10-K for the fiscal year ended June 27, 2025.
+Added: We are subject to risks from the continuation of the ongoing U.S.
+Added: federal government shutdown.
+Added: Our business is exposed to operational and financial disruptions caused by the U.S.
+Added: federal government shutdown that began on October 1, 2025.
+Added: The ongoing U.S.
+Added: federal government shutdown may result in us experiencing delays or decreases in customer orders with the U.S.
+Added: DoD or with our prime contractor customers or potentially the suspension of work on contacts in progress or in payment delays related to the funding status of different programs.
+Added: The shutdown has also slowed the processing of export licenses by agencies such as the Department of State’s Directorate of Defense Trade Controls and the Department of Commerce’s Bureau of Industry and Security.
+Added: These export license delays could hinder our ability to fulfill international orders and potentially subject us to increased costs for liquidated damages or other penalties for late deliveries.
+Added: Given the indefinite nature of the current shutdown and the absence of a clear resolution timeline, we anticipate continued volatility in the federal contracting environment.
+Added: If the shutdown persists for an extended timeframe, it could materially and adversely affect our results of operations and financial performance.
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.