22 unchanged sentences
• We obtain several key components from limited or sole sources.
+Added: • Some of our competitors have substantially greater resources than we do, and to be competitive we may be required to lower our prices or increase our sales and marketing expenses.
• We depend substantially on our sales channels, and our failure to maintain and expand our sales channels would result in lower sales and reduced net revenue.
• We depend on a limited number of third-party manufacturers for substantially all of our manufacturing needs.
−Removed: • Some of our competitors have substantially greater resources than we do, and to be competitive we may be required to lower our prices or increase our sales and marketing expenses.
• Our sales and operations in international markets have exposed us to and may in the future expose us to operational, financial and regulatory risks.
22 unchanged sentences
• Changes in tax laws or exposure to additional income tax liabilities could affect our future profitability.
−Removed: • We are subject to, and must remain in compliance with, numerous laws and governmental regulations.
+Added: • We are subject to, and must remain in compliance with numerous new, existing and changing laws and regulations worldwide.
• We must comply with indirect tax laws in multiple jurisdictions, as well as complex customs duty regimes worldwide.
31 unchanged sentences
Actual demand for our products depends on many factors, which makes it difficult to forecast.
−Removed: We have experienced differences between our actual and our forecasted demand in the past and expect differences to arise in the future.
−Removed: improperly forecast demand for our products and channel inventory levels, we could end up with too many products and be unable to sell the excess inventory in a timely manner, if at all, or, alternatively we could end up with too few products and not be able to satisfy demand.
+Added: We have experienced
+Added: differences between our actual and our forecasted demand in the past and expect differences to arise in the future.
+Added: If we improperly forecast demand for our products and channel inventory levels, we could end up with too many products and be unable to sell the excess inventory in a timely manner, if at all, or, alternatively we could end up with too few products and not be able to satisfy demand.
This problem is exacerbated because we attempt to closely match inventory levels with product demand leaving limited margin for error.
103 unchanged sentences
At times we have elected to purchase components on the spot market or to use more expensive transportation methods, such as air freight, to make up for manufacturing delays caused by component shortages, which reduces our margins.
+Added: * Some of our competitors have substantially greater resources than we do, and to be competitive we may be required to lower our prices or increase our sales and marketing expenses, which could result in reduced margins or loss of market share and revenue.
+Added: We compete in a rapidly evolving and fiercely competitive market, and we expect competition to continue to be intense, including price competition.
+Added: Our principal competitors in the consumer market include ARRIS, ASUS, AVM, Devolo, D-Link, Eero (owned by Amazon), Linksys (owned by Foxconn), Minim (Motorola licensee), Google WiFi, Samsung, and TP-Link.
+Added: Our principal competitors in the business market include Allied Telesys, Barracuda, Buffalo, Cisco Systems, Dell, D-Link, Extreme, Fortinet, Hewlett-Packard Enterprise, Palo Alto Networks, QNAP Systems, SonicWall, Snap AV, Synology, TP-Link, Ubiquiti and WatchGuard.
+Added: Our principal competitors in the service provider market include Actiontec, Airties, Arcadyan, ARRIS, ASUS, AVM, Compal Broadband, D-Link, Eero (owned by Amazon), Franklin, Google, Hitron, Huawei, Inseego, Nokia, Plume, Sagem, Sercomm, SMC Networks, TechniColor, TP-Link, Ubee, ZTE and Zyxel.
+Added: Other competitors include numerous local vendors such as Xiaomi in China, AVM in Germany and Buffalo in Japan.
+Added: In addition, these local vendors may target markets outside of their local regions and may increasingly compete with us in other regions worldwide.
+Added: Our potential competitors also include other consumer electronics vendors, including Apple, LG Electronics, Microsoft, Panasonic, Sony, Toshiba and Vizio, who could integrate networking and streaming capabilities into their line of products, such as televisions, set top boxes and gaming consoles, and our channel customers who may decide to offer self-branded networking products.
+Added: We also face competition from service providers who may bundle a free networking device with their broadband service offering, which would reduce our sales if we were not the supplier of choice to those service providers.
+Added: In the service provider space, we also face significant and increased competition from original design manufacturers, or ODMs, and contract manufacturers who sell and attempt to sell their products directly to service providers around the world.
+Added: Many of our existing and potential competitors have longer operating histories, greater name recognition and substantially greater financial, technical, sales, marketing and other resources.
+Added: These competitors may, among other things, undertake more extensive marketing campaigns, adopt more aggressive pricing policies, obtain more favorable pricing from suppliers and manufacturers, and exert more influence on sales channels than we can.
+Added: Certain of our significant competitors also serve as key sales and marketing channels for our products, potentially giving these competitors a marketplace advantage based on their knowledge of our business activities and/or their ability to negatively influence our sales opportunities.
+Added: For example, Amazon provides an important sales channel for our products, but it also competes with us in the mesh WiFi systems product category through its subsidiary Eero.
+Added: In addition, certain competitors may have different business models, such as integrated manufacturing capabilities, that may allow them to achieve cost savings and to compete on the basis of price.
+Added: Other competitors may have fewer resources but may be more nimble in developing new or disruptive technology or in entering new markets.
+Added: We anticipate that current and potential competitors will also intensify their efforts to penetrate our target markets.
+Added: in the past certain network security companies such as Symantec have introduced security routers for the home consumer market to compete with us and we believe that other network security companies may also seek to do the same.
+Added: Also, due to our recent success in the audio visual over IP market, some of our competitors may seek to enter this market as well.
+Added: Price competition is intense in our industry in certain geographical regions and product categories.
+Added: Many of our competitors in the service provider and retail spaces price their products significantly below our product costs in order to gain market share.
+Added: Certain substantial competitors have business models that are more focused on customer acquisition and access to customer data rather than on financial return from product sales, and these competitors have the ability to provide sustained price competition to many of our products in the market.
+Added: Average sales prices have declined in the past and may again decline in the future.
+Added: These competitors may have more advanced technology, more extensive distribution channels, stronger brand names, greater access to shelf space in retail locations, bigger promotional budgets and larger customer bases than we do.
+Added: In addition, many of these competitors leverage a broader product portfolio and offer lower pricing as part of a more comprehensive end-to-end solution which we may not have.
+Added: These companies could devote more capital resources to develop, manufacture and market competing products than we could.
+Added: Our competitors may acquire other companies in the market and leverage combined resources to gain market share.
+Added: In some instances, our competitors may be acquired by larger companies with additional formidable resources, such as the purchase of ARRIS by CommScope, Eero by Amazon and Linksys by Foxconn.
+Added: Additionally, in the case of Linksys, Foxconn is one of our main third-party manufacturing partners, which presents an additional risk if Foxconn decides to prioritize its interest in Linksys over its relationship with us.
+Added: If any of these companies are successful in competing against us, our sales could decline, our margins could be negatively impacted and we could lose market share, any of which could seriously harm our business and results of operations.
We depend substantially on our sales channels, and our failure to maintain and expand our sales channels would result in lower sales and reduced net revenue.
56 unchanged sentences
Labor unrest in Southeast Asia, China or other locations where components and our products are manufactured may also affect our third-party manufacturers as workers may strike and cause production delays.
−Removed: If our third-party manufacturers fail to maintain good
−Removed: relations with their employees or contractors, and production and manufacturing of our products is affected, then we may be subject to shortages of products and quality of products delivered may be affected.
+Added: If our third-party manufacturers fail to maintain good relations with their employees or contractors, and production and manufacturing of our products is affected, then we may be subject to shortages of products and quality of products delivered may be affected.
Further, if our manufacturers or warehousing facilities are disrupted or destroyed, we would have no other readily available alternatives for manufacturing and assembling our products and our business would be significantly harmed.
2 unchanged sentences
If we are unable to properly manage these risks, our products may be more susceptible to defects and our business would be harmed.
−Removed: Some of our competitors have substantially greater resources than we do, and to be competitive we may be required to lower our prices or increase our sales and marketing expenses, which could result in reduced margins or loss of market share and revenue.
−Removed: We compete in a rapidly evolving and fiercely competitive market, and we expect competition to continue to be intense, including price competition.
−Removed: Our principal competitors in the consumer market include ARRIS, ASUS, AVM, Devolo, D-Link, Eero (owned by Amazon), Linksys (owned by Foxconn), Minim (Motorola licensee), Google WiFi, Samsung, and TP-Link.
−Removed: Our principal competitors in the business market include Allied Telesys, Barracuda, Buffalo, Cisco Systems, Dell, D-Link, Extreme, Fortinet, Hewlett-Packard Enterprise, Palo Alto Networks, QNAP Systems, SonicWall, Snap AV, Synology, TP-Link, Ubiquiti and WatchGuard.
−Removed: Our principal competitors in the service provider market include Actiontec, Airties, Arcadyan, ARRIS, ASUS, AVM, Compal Broadband, D-Link, Eero (owned by Amazon), Franklin, Google, Hitron, Huawei, Inseego, Nokia, Plume, Sagem, Sercomm, SMC Networks, TechniColor, TP-Link, Ubee, ZTE and Zyxel.
−Removed: Other competitors include numerous local vendors such as Xiaomi in China, AVM in Germany and Buffalo in Japan.
−Removed: In addition, these local vendors may target markets outside of their local regions and may increasingly compete with us in other regions worldwide.
−Removed: Our potential competitors also include other consumer electronics vendors, including Apple, LG Electronics, Microsoft, Panasonic, Sony, Toshiba and Vizio, who could integrate networking and streaming capabilities into their line of products, such as televisions, set top boxes and gaming consoles, and our channel customers who may decide to offer self-branded networking products.
−Removed: We also face competition from service providers who may bundle a free networking device with their broadband service offering, which would reduce our sales if we were not the supplier of choice to those service providers.
−Removed: In the service provider space, we also face significant and increased competition from original design manufacturers, or ODMs, and contract manufacturers who sell and attempt to sell their products directly to service providers around the world.
−Removed: Many of our existing and potential competitors have longer operating histories, greater name recognition and substantially greater financial, technical, sales, marketing and other resources.
−Removed: These competitors may, among other things, undertake more extensive marketing campaigns, adopt more aggressive pricing policies, obtain more favorable pricing from suppliers and manufacturers, and exert more influence on sales channels than we can.
−Removed: Certain of our significant competitors also serve as key sales and marketing channels for our products, potentially giving these competitors a marketplace advantage based on their knowledge of our business activities and/or their ability to negatively influence our sales opportunities.
−Removed: For example, Amazon provides an important sales channel for our products, but it also competes with us in the mesh WiFi systems product category through its subsidiary Eero.
−Removed: In addition, certain competitors may have different business models, such as integrated manufacturing capabilities, that may allow them to achieve cost savings and to compete on the basis of price.
−Removed: Other competitors may have fewer resources but may be more nimble in developing new or disruptive technology or in entering new markets.
−Removed: We anticipate that current and potential competitors will also intensify their efforts to penetrate our target markets.
−Removed: For example, in the past certain network security companies such as Symantec have introduced security routers for the home consumer market to compete with us and we believe that other network security companies may also seek to do the same.
−Removed: Also, due to our recent success in the audio visual over IP market, some of our competitors may seek to enter this market as well.
−Removed: Price competition is intense in our industry in certain geographical regions and product categories.
−Removed: Many of our competitors in the service provider and retail spaces price their products significantly below our product costs in order to gain market share.
−Removed: Certain substantial competitors have business models that are more focused on customer acquisition and access to customer data rather than on financial return from product sales, and these competitors have the ability to provide sustained price competition to many of our products in the market.
−Removed: Average sales prices have declined in the past and may again decline in the future.
−Removed: These competitors may have more advanced technology, more extensive distribution channels, stronger brand names, greater access to shelf space in retail locations, bigger promotional budgets and larger customer bases than we do.
−Removed: In addition, many of these competitors leverage a broader product portfolio and offer lower pricing as part of a more comprehensive end-to-end solution which we may not have.
−Removed: These companies could devote more capital resources to develop, manufacture and market competing products than we could.
−Removed: Our competitors may acquire other companies in the market and leverage combined resources to gain market share.
−Removed: In some instances, our competitors may be acquired by larger companies with additional formidable resources, such as the purchase of ARRIS by CommScope, Eero by Amazon and Linksys by Foxconn.
−Removed: Additionally, in the case of Linksys, Foxconn is one of our main third-party manufacturing partners, which presents an additional risk if Foxconn decides to prioritize its interest in Linksys over its relationship with us.
−Removed: If any of these companies are successful in competing against us, our sales could decline, our margins could be negatively impacted and we could lose market share, any of which could seriously harm our business and results of operations.
Our sales and operations in international markets have exposed us to and may in the future expose us to operational, financial and regulatory risks.
International sales comprise a significant amount of our overall net revenue.
−Removed: International sales were approximately 35% of overall net revenue in the first fiscal quarter of 2024 and approximately 34% of overall net revenue in fiscal 2023.
+Added: International sales were approximately 36% of overall net revenue in the second fiscal quarter of 2024 and approximately 34% of overall net revenue in fiscal 2023.
We continue to be committed to growing our international sales, and while we have committed resources to expanding our international operations and sales channels, these efforts may not be successful.
58 unchanged sentences
If we are unable to anticipate technology trends and service provider customer product needs, and to allocate research and development resources to the right projects, we may not be successful in continuing to sell products to service provider customers.
−Removed: In addition, because our service provider customers command significant resources, including for software support, and demand extremely competitive pricing, certain ODMs have declined to develop service provider products on an ODM basis.
+Added: In addition, because our service provider customers command significant resources, including for software support, and demand extremely
+Added: competitive pricing, certain ODMs have declined to develop service provider products on an ODM basis.
Accordingly, as our ODMs increasingly limit development of our service provider products, our service provider business will be harmed if we cannot replace this capability with alternative ODMs or in-house development.
Orders from service providers generally tend to be large but sporadic, which causes our revenues from them to fluctuate and challenges our ability to accurately forecast demand from them.
−Removed: In particular, managing inventory, inventory levels and production of our products for our service provider customers is a challenge and may be further exacerbated by current
−Removed: macroeconomic uncertainties and geopolitical instability.
+Added: In particular, managing inventory, inventory levels and production of our products for our service provider customers is a challenge and may be further exacerbated by current macroeconomic uncertainties and geopolitical instability.
Many of our service provider customers have irregular purchasing requirements.
75 unchanged sentences
Determination of the HTS and the origin of the item is a technical matter that can be subjective in nature.
−Removed: Accordingly, although we believe our classifications of both HTS and origin are appropriate, there is no certainty that the U.S.
+Added: Accordingly, although we believe our classifications of both HTS and origin are appropriate, there
+Added: is no certainty that the U.S.
government will agree with us.
36 unchanged sentences
If the systems fail to operate appropriately or we experience any disruptions or delays in enhancing their functionality to meet current business requirements, our ability to fulfill customer orders, bill and track our customers, fulfill contractual obligations, accurately report our financials and otherwise run our business could be adversely affected.
−Removed: Even if we do not encounter these adverse effects, the enhancement of systems may be much more costly than we
+Added: Even if we do not encounter these adverse effects, the enhancement of systems may be much more costly than we anticipated.
If we are unable to continue to enhance our information technology systems as planned, our financial position, results of operations and cash flows could be negatively impacted.
25 unchanged sentences
Failure to manage and successfully integrate acquisitions could materially harm our business and operating results.
−Removed: In addition, if stock market analysts or our stockholders do not support or believe in the value of the acquisitions that we choose to undertake, our stock price may decline.
+Added: In addition, if stock market analysts
+Added: or our stockholders do not support or believe in the value of the acquisitions that we choose to undertake, our stock price may decline.
We invest in companies primarily for strategic reasons but may not realize a return on our investments.
We have made, and continue to seek to make, investments in companies around the world to further our strategic objectives and support our key business initiatives.
−Removed: These investments may include equity or debt instruments of public or private
−Removed: companies, and may be non-marketable at the time of our initial investment.
+Added: These investments may include equity or debt instruments of public or private companies, and may be non-marketable at the time of our initial investment.
We do not restrict the types of companies in which we seek to invest.
27 unchanged sentences
If we are unable to license the necessary technology, we may be forced to acquire or develop alternative technology, which could be of lower quality or performance standards.
−Removed: The acquisition or development of alternative technology may limit and delay our ability to offer new or competitive products and services and increase our costs of production.
+Added: The acquisition or development of alternative technology may limit
+Added: and delay our ability to offer new or competitive products and services and increase our costs of production.
As a result, our business, operating results and financial condition could be materially adversely affected.
13 unchanged sentences
If malicious actors compromise this cloud service, or if customer confidential information is accessed without authorization, our business and reputation would be harmed.
−Removed: Operating an online cloud service is a relatively new business for us and we may not have the expertise to properly manage risks related to data security and systems security.
−Removed: In addition, we make our products available for purchase directly by consumers through our website.
We rely on third-party providers for a number of critical aspects of our cloud services, e-commerce site and customer support, including web hosting services, billing and payment processing, and consequently we do not maintain direct control over the security or stability of the associated systems.
13 unchanged sentences
In addition, U.S.
−Removed: and foreign regulators have increased their focus on cybersecurity vulnerabilities and risks and many states, countries and jurisdictions strictly regulate data privacy and protection and may impose significant penalties for failure to comply with these requirements.
−Removed: Compliance with laws and regulations concerning artificial intelligence, privacy, cybersecurity, data governance and data protection is a rigorous and time-intensive process, and we may be required to put in place additional mechanisms ensuring compliance with the laws and regulations and incur substantial expenditures.
+Added: and foreign regulators have increased their focus on cybersecurity vulnerabilities and risks and many states, countries and jurisdictions have laws and regulations that may impose significant penalties for failure to comply with these requirements.
+Added: Compliance with laws and regulations concerning artificial intelligence, privacy, cybersecurity, data governance and data
+Added: protection is a rigorous and time-intensive process, that continuously evolves and develops, and we may be required to put in place additional mechanisms ensuring compliance with the laws and regulations and incur substantial expenditures.
If we fail to comply with any such laws or regulations, we may face significant fines and penalties that could adversely affect our business, financial condition and results of operations.
−Removed: Furthermore, the laws are not consistent, and compliance in the event of a widespread data breach is costly.
+Added: Furthermore, the laws and regulations are not consistent.
+Added: The applicability and scope of these laws and regulations, as interpreted by courts, regulators, or administrative bodies, remain uncertain and compliance in the event of a widespread data breach or other cybersecurity incident could be costly.
Potential breaches of our security measures and the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us, our employees or our customers, including the potential loss or disclosure of such information or data as a result of improper use of AI tools, employee error or other employee actions, hacking, fraud, social engineering or other forms of deception, could expose us, our customers or the individuals affected to a risk of loss or misuse of this information, result in litigation and potential liability for us, subject us to significant governmental fines, damage our brand and reputation, or otherwise harm our business.
2 unchanged sentences
* If we are unable to successfully leverage AI technology to automate and drive efficiencies in our operations and products and services, our business, reputation, results of operations and financial condition could be harmed.
−Removed: We have embarked on an AI transformation effort to take full advantage of automation, artificial intelligence, machine learning and other technologies to drive efficiencies and improve productivity in our operations and to develop and improve our products, services and customer experiences.
+Added: We have embarked on an AI transformation effort to take full advantage of automation, artificial intelligence, machine learning and other technologies to drive efficiencies and improve productivity within our Company and to develop and improve our products, services and customer experiences.
As we increase our investment in technology, software and systems to support this transformation effort, such investments may not increase productivity, result in more efficient operations or deliver better products, services and customer experiences.
4 unchanged sentences
If our incorporation of AI technologies does not increase our operational efficiency in accordance with our expectations, or if competition increases for the technology and services provided by third parties, our business, results of operations and financial condition may be harmed.
−Removed: The legal and regulatory landscape surrounding generative AI technologies is rapidly evolving and uncertain including in the areas of intellectual property, discrimination, cybersecurity, privacy and data protection.
+Added: While we have established an AI transformation leadership team to coordinate and oversee our approach to AI adoption, the legal and regulatory landscape surrounding generative AI technologies is rapidly evolving and uncertain including in the areas of intellectual property, discrimination, cybersecurity, privacy and data protection.
Compliance with existing, new, and changing laws, regulations, and industry standards relating to AI may limit some uses of AI, impose significant operational costs, and limit our ability to develop, deploy, or use AI technologies.
9 unchanged sentences
Software research and development is complex.
−Removed: We must make long-term investments, develop or obtain appropriate intellectual property and commit significant resources before knowing whether our output from these investments will
−Removed: successfully result in meaningful customer demand and retention for our products and services.
+Added: We must make long-term investments, develop or obtain appropriate intellectual property and commit significant resources before knowing whether our output from these investments will successfully result in meaningful customer demand and retention for our products and services.
We must accurately forecast mixes of software solutions and configurations that meet customer requirements, and we may not succeed at doing so within a given product’s life cycle or at all.
10 unchanged sentences
As also noted in the risk factor “ We make substantial investments in software research and development and unsuccessful investments could materially adversely affect our business, financial condition and results of operations ” above, we devote considerable time and resources on testing and quality control efforts to detect quality issues and defects, and any reallocation of resources to fix such quality issues and defects could lead to delays in product introductions, which could further harm our competitive position.
+Added: Additionally, certain software components in our product and corporate systems can be directly updated by our third-party partners.
+Added: Defects, errors or failures in such updates could impact our customer's experience or cause business interruptions.
In addition, epidemic failure clauses are found in certain of our customer contracts, especially contracts with service providers.
10 unchanged sentences
The substantial majority of our revenue from our subscription services is generated from use of such services on mobile devices.
−Removed: We are dependent on the interoperability of Armor and our parental controls services and our other products and services with popular mobile operating systems, networks, technologies, products, and standards that we do not control, such as the Android and iOS operating systems and mobile browsers.
+Added: We are dependent on the interoperability of Armor and our parental controls services and our other products and
+Added: services with popular mobile operating systems, networks, technologies, products, and standards that we do not control, such as the Android and iOS operating systems and mobile browsers.
Any changes, bugs, or technical issues in such systems, or changes in our relationships with mobile operating system partners, handset manufacturers, browser developers, or mobile carriers, or in their terms of service or policies that degrade our products’ functionality, reduce or eliminate our ability to update or distribute our products or services, give preferential treatment to competitive products, or charge fees related to the distribution of our products could adversely affect the usage of our subscription services products or our other products and services on mobile devices.
We may not be successful in maintaining or developing relationships with key participants in the mobile ecosystem or in developing products and services that operate effectively with these technologies, products, systems, networks, or standards.
−Removed: In the event that it is more difficult for our users to access and use our subscription services products
−Removed: or our other products on their mobile devices, or if our users choose not to access or use our subscription services products or our other products on their mobile devices, our user growth and user engagement and our business could be harmed.
+Added: In the event that it is more difficult for our users to access and use our subscription services products or our other products on their mobile devices, or if our users choose not to access or use our subscription services products or our other products on their mobile devices, our user growth and user engagement and our business could be harmed.
If we are unable to secure and protect our intellectual property rights, our ability to compete could be harmed.
14 unchanged sentences
If we are unable to resolve these matters or obtain licenses on acceptable or commercially reasonable terms, we could be sued or we may be forced to initiate litigation to protect our rights.
−Removed: The cost of any necessary licenses could significantly harm our business, operating results and financial condition.
−Removed: We may also choose to join defensive patent aggregation services in order to prevent or settle litigation against such non-practicing entities and avoid the associated significant costs and uncertainties of litigation.
+Added: The cost of any necessary licenses or cost to defend litigation could significantly harm our business, operating results and financial condition.
+Added: We may also choose to join defensive patent aggregation services in order to prevent or settle litigation and avoid the associated significant costs and uncertainties of litigation.
These patent aggregation services may obtain, or have previously obtained, licenses for the alleged patent infringement claims against us and other patent assets that could be used offensively against us.
2 unchanged sentences
In 2022, a third-party initiated litigation against us in Germany and China, which carries with it the threat of an injunction on the importation of our products into Germany and China, as well as a significant increase in time and resources to defend against.
+Added: In 2024, another third party filed a case against us in the International Trade Commission and California District Court alleging patent infringement and seeking an exclusion order on importation of purportedly infringing products into the United States as well as damages.
In addition, several third-party non practicing entities have initiated litigation against us in China, which also raises novel and unique challenges for us.
For example, we have experienced that patent litigation in China proceeds along a faster timeline, is more costly than we anticipated, carries a greater risk of injunction, and suffers from a relative lack of judicial development relative to patent litigation in the United States.
−Removed: In addition, third parties, some of whom are potential competitors, have initiated and may continue to initiate litigation against our manufacturers, suppliers, members of our sales channels or our service provider customers or even end user customers, alleging infringement of their proprietary rights with respect to existing or future products.
+Added: In addition, third parties, some of whom are potential competitors, have initiated and may continue to initiate litigation against us, our manufacturers, suppliers, members of our sales channels or our service provider customers or even end user customers, alleging
+Added: infringement of their proprietary rights with respect to existing or future products.
In the event successful claims of infringement are brought by third parties, and we are unable to obtain licenses or independently develop alternative technology on a timely basis, we may be subject to indemnification obligations, be unable to offer competitive products, or be subject to increased expenses.
43 unchanged sentences
Foreign jurisdictions have increased the volume of tax audits of multinational corporations.
−Removed: Further, many countries continue to consider changes in
−Removed: their tax laws by implementing new taxes such as the digital service tax and initiatives such as the Organization for Economic Co-operation and Development’s (OECD) Pillar II global minimum tax.
+Added: Further, many countries continue to consider changes in their tax laws by implementing new taxes such as the digital service tax and initiatives such as the Organization for Economic Co-operation and Development’s (OECD) Pillar II global minimum tax.
More than 140 countries agreed to enact the Pillar II global minimum tax.
6 unchanged sentences
These provisions have not been deferred, modified, or repealed by Congress as was previously anticipated might occur.
−Removed: These provisions have a material impact on our cash taxes which will continue in the future if these provisions are not modified, or repealed by Congress.
+Added: In years where we are profitable, these provisions have a material impact on our cash taxes which will continue in the future if these provisions are not modified, or repealed by Congress.
We have been audited by the Italy Tax Authority (“ITA”) for the 2004 through 2012 tax years.
3 unchanged sentences
Our hearing on all years at the Italian Supreme Court was held on March 6, 2024.
−Removed: As of March 31, 2024, decisions were issued in the Company’s favor for the 2008 through 2012 tax years.
−Removed: As of the March 31, 2024 decisions on the 2004 through 2007 tax years had not yet been issued.
+Added: As of June 30, 2024, decisions were issued in the Company’s favor for the 2007 through 2012 tax years.
+Added: As of June 30, 2024, decisions on the 2004 through 2006 were reverted back to the lower court for re-hearing.
If we are unsuccessful in defending our tax positions for the remaining years, our profitability will be reduced.
10 unchanged sentences
Future benefit of these deferred tax assets will be realized in the period they are utilized.
−Removed: We are subject to, and must remain in compliance with, numerous laws and governmental regulations concerning the manufacturing, use, distribution and sale of our products, as well as any such future laws and regulations.
+Added: * We are subject to, and must remain in compliance with numerous new, existing and changing laws and regulations worldwide concerning the manufacturing, use, distribution and sale of our products.
Some of our customers also require that we comply with their own unique requirements relating to these matters.
Any failure to comply with such laws, regulations and requirements, and any associated unanticipated costs, may adversely affect our business, financial condition and results of operations.
−Removed: We manufacture and sell products which contain electronic components, and such components may contain materials that are subject to government regulation in both the locations that we manufacture and assemble our products, as well as the locations where we sell our products.
−Removed: For example, certain regulations limit the use of lead in electronic components.
−Removed: To our knowledge, we maintain compliance with all applicable current government regulations concerning the materials utilized in our products, for all the locations in which we operate.
+Added: We are a global company subject to numerous U.S.
+Added: and foreign laws and regulations.
+Added: Many of these laws and regulations are continuously evolving and developing, and the interpretations, applications or impact of these laws and regulations on us are uncertain and could be interpreted in ways that harm our business.
+Added: For example, we manufacture and sell products which contain electronic components, and such components may contain materials that are subject to government regulation in both the locations that we manufacture and assemble our products, as well as the locations where we sell our products.
+Added: Certain regulations also limit the use of lead in electronic components.
+Added: To our knowledge, we maintain compliance with all applicable
+Added: current government regulations concerning the materials utilized in our products, for all the locations in which we operate.
Since we operate on a global basis, this is a complex process which requires continual monitoring of regulations and an ongoing compliance process to ensure that we and our suppliers are in compliance with all existing regulations.
3 unchanged sentences
In addition, the supply-chain due diligence investigation required by the conflict minerals rules require expenditures of resources and management attention regardless of the results of the investigation.
−Removed: If there is an unanticipated new regulation which significantly impacts our use of various components or requires more expensive components, that regulation would have a material adverse impact on our business, financial condition and results of operations.
−Removed: One area which has a large number of regulations is environmental compliance.
+Added: If there is an unanticipated new regulation or new interpretations or applications of existing laws and regulations which significantly impacts our use of various components or requires more expensive components, that regulation would have a material adverse impact on our business, financial condition and results of operations.
+Added: One area which has a large number of evolving and developing regulations is environmental compliance.
Management of environmental pollution, climate change and other ESG considerations has produced significant legislative and regulatory efforts on a global basis, and we believe this will continue both in scope and the number of countries participating.
3 unchanged sentences
While future changes in regulations are certain, we are currently unable to predict how any such changes will impact us and if such impacts will be material to our business.
−Removed: If there is a new law or regulation that significantly increases our costs of manufacturing or causes us to significantly alter the way that we manufacture our products, this would have a material adverse effect on our business, financial condition and results of operations.
+Added: If there is a new law or regulation, or a new interpretation and application of existing laws, that significantly increases our costs of manufacturing or causes us to significantly alter the way that we manufacture our products, this would have a material adverse effect on our business, financial condition and results of operations.
Our selling and distribution practices are also regulated in large part by U.S.
6 unchanged sentences
Many of the competition-related laws that govern these Internet sales were adopted prior to the advent of the Internet, and, as a result, do not contemplate or address the unique issues raised by online sales.
−Removed: New interpretations of existing laws and regulations, whether by courts or by the state, federal or foreign governmental authorities charged with the enforcement of those laws and regulations, may also impact our business in ways we are currently unable to predict.
+Added: New interpretations or applications of existing laws and regulations, whether by courts or by the state, federal or foreign governmental authorities charged with the enforcement of those laws and regulations, may also impact our business in ways we are currently unable to predict.
Any failure on our part or on the part of our employees, agents, distributors or other business partners to comply with the laws and regulations governing competition can result in negative publicity and diversion of management time and effort and may subject us to significant litigation liabilities and other penalties.
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We also incorporate encryption technology into certain of our solutions.
−Removed: These encryption solutions and underlying technology may be exported outside of the United States
−Removed: only with the required export authorizations or exceptions, including by license, a license exception, appropriate classification notification requirement and encryption authorization.
+Added: These encryption solutions and underlying technology may be exported outside of the United States only with the required export authorizations or exceptions, including by license, a license exception, appropriate classification notification requirement and encryption authorization.
Furthermore, our activities are subject to U.S.
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This additional regulation of encryption technology could delay or prevent the acceptance and use of encryption products and public networks for secure communications, resulting in decreased demand for our products and services.
−Removed: In addition, some foreign competitors are subject to less stringent controls on exporting their encryption technologies.
+Added: In addition, some foreign
+Added: competitors are subject to less stringent controls on exporting their encryption technologies.
As a result, they may be able to compete more effectively than we can in the United States and the international Internet security market.
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In addition, significant negative industry or economic trends, such as those that have occurred as a result of the recent economic downturn, including reduced estimates of future cash flows or disruptions to our business could indicate that goodwill might be impaired.
−Removed: If, in any period
−Removed: our stock price decreases to the point where our market capitalization is less than our book value, this too could indicate a potential impairment and we may be required to record an impairment charge in that period.
+Added: If, in any period our stock price decreases to the point where our market capitalization is less than our book value, this too could indicate a potential impairment and we may be required to record an impairment charge in that period.
Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on projections of future operating performance.
11 unchanged sentences
During the transition periods, there may be uncertainty among investors, employees and others concerning our future direction and performance.
−Removed: For example, we appointed a new Chief Executive Officer effective January 31, 2024 and are undergoing a leadership change to our NETGEAR for Business reporting unit.
+Added: For example, we appointed a new Chief Executive Officer effective January 31, 2024 and have made other leadership changes and hires.
The failure to successfully transition could adversely affect our results of operations.
−Removed: Our future success depends in large part upon the continued services of our key technical, engineering, sales, marketing, finance and senior management personnel.
We do not maintain any key person life insurance policies.
1 unchanged sentence
Our success depends on senior management being able to execute at a very high level.
−Removed: The loss of any of our senior management or other key engineering, research, development, sales or marketing personnel, particularly if lost to competitors, could harm our ability to implement our business strategy and respond to the rapidly changing needs of our business.
+Added: The loss of our senior management or other key engineering, research, development, sales or marketing personnel, particularly if lost to competitors, could harm our ability to implement our business strategy and respond to the rapidly changing needs of our business.
Our future success also depends on our ability to hire for key functions.
6 unchanged sentences
Weakness in, and uncertainty about, global economic conditions may cause businesses to postpone spending in response to tighter credit, negative financial news and/or declines in income or asset values, which could have a material negative effect on the demand for networking products.
−Removed: Adverse changes in economic conditions, including inflation, slower growth or recession, new or increased tariffs and other barriers to trade, changes to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment and currency fluctuations could adversely impact the demand and sale of our products to end users and the quantity of products our customers decide to purchase from us (or change the mix of products demanded) and make it more challenging to forecast our operating results and make business decisions.
+Added: Adverse changes in economic conditions, including inflation, slower growth or recession, new or increased tariffs and other barriers to trade, changes to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment and currency fluctuations
+Added: could adversely impact the demand and sale of our products to end users and the quantity of products our customers decide to purchase from us (or change the mix of products demanded) and make it more challenging to forecast our operating results and make business decisions.
For example, during the fourth quarter of 2022, our APAC sales were dampened by a sudden economic downturn in China due to sudden, widespread COVID-19 infections and illnesses.
1 unchanged sentence
Macroeconomic weakness and uncertainty also make it more difficult for us to accurately forecast revenue, gross margin and expenses.
−Removed: If we are unable to successfully anticipate changing economic, geopolitical and financial conditions, we may be unable to effectively plan for and respond to those changes which
−Removed: could further disrupt our business or limit our ability to access certain assets and materially adversely affect our business and results of operations.
+Added: If we are unable to successfully anticipate changing economic, geopolitical and financial conditions, we may be unable to effectively plan for and respond to those changes which could further disrupt our business or limit our ability to access certain assets and materially adversely affect our business and results of operations.
In addition, availability of our products from third-party manufacturers and our ability to distribute our products into the United States and non-U.S.
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Such events could decrease demand for our products, make it difficult, more expensive or impossible for us to make and deliver products to our customers or to receive components from our direct or indirect suppliers, and create delays and inefficiencies in our supply chain.
−Removed: Wars or geopolitical conflicts, major public health issues, including pandemics such as COVID-19, could negatively affect us through more stringent employee travel restrictions, additional limitations in freight services or increase in freight costs, governmental actions limiting the movement of products between regions, delays in production ramps of new products, and disruptions in the operations of our manufacturing vendors and component suppliers.
+Added: Wars or geopolitical conflicts, major public health issues, including pandemics such as COVID-19, could negatively affect us through more stringent employee travel restrictions, additional limitations in freight
+Added: services or increase in freight costs, governmental actions limiting the movement of products between regions, delays in production ramps of new products, and disruptions in the operations of our manufacturing vendors and component suppliers.
Our stock price has experienced recent volatility and may be volatile in the future and your investment in our common stock could suffer a decline in value.
23 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.