9 unchanged sentences
We have significantly increased the wages we pay to remain competitive and attract new workers, especially production workers.
−Removed: Labor shortages could impact our revenue and profitability, and increases in labor cost could adversely affect our profit margins and results of operations.
+Added: Labor shortages could impact our revenue and profitability, and increases in labor costs could adversely affect our profit margins and results of operations.
The loss of supply from any of our key single-source wafer suppliers could substantially impact our ability to produce and deliver products and seriously harm our business and financial condition.
5 unchanged sentences
Wafer supply interruptions for any reason could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.
−Removed: The loss of supply of any critical chemicals or supplies could impact our ability to produce and deliver products and cause loss of revenue.
+Added: Shortages of any critical chemicals or supplies could impact our ability to produce and deliver products and cause loss of revenue.
There are a number of critical chemicals and supplies that we require to make products.
5 unchanged sentences
Supply interruptions or shortages for any reason could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.
−Removed: The loss of supply from any of our packaging vendors could impact our ability to produce and deliver products and cause loss of revenue.
+Added: A loss of supply from any of our packaging vendors could impact our ability to deliver products and cause loss of revenue.
We are dependent on our packaging vendors.
Because of the unique materials our products use, the complexity of some of our products, unique magnetic requirements, and high isolation voltage specifications, many of our products are more challenging to package than conventional integrated circuits.
−Removed: Some of our products use processes or tooling unique to a particular packaging vendor, and it might be expensive, time-consuming, or impractical to convert to another vendor in the event of a supply interruption due to vendors’ business decisions, business condition, or acts of God, including floods, typhoons, earthquakes, or pandemics.
−Removed: Lead times for packaging services increased during the COVID-19 pandemic and there have been shortages of raw materials our packaging vendors need for their processes.
−Removed: Government lockdown restrictions, labor shortages, raw-material shortages, and supply-chain disruptions have reduced our vendors’ capacity and increased their lead times.
−Removed: These conditions could continue, worsen, or recur.
+Added: We have alternate vendors or potential alternate vendors for the majority of our products, but it could be expensive, time-consuming, or impractical to convert to another vendor in the event of a supply interruption due to vendors’ business decisions, business conditions, or acts of God, including floods, typhoons, earthquakes, or pandemics.
+Added: Furthermore, we may not be able to recover work in process or finished goods at a packaging vendor in the event of a disruption.
Additionally, certain of our packaging vendors are in flood-susceptible areas.
Flooding risks to such vendors may increase in the future due to possible higher ocean levels, extreme weather, and other potential effects of climate change.
−Removed: We have alternate vendors or potential alternate vendors for the majority of our products, but it can be expensive, time-consuming, and technically challenging to convert to alternate vendors.
−Removed: Furthermore, we may not be able to recover work in process or finished goods at a packaging vendor in the event of a disruption.
Supply delays, interruptions, or loss of inventory could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.
5 unchanged sentences
We expect these trends to continue, and we may lose business to competitors or it may be necessary to significantly reduce our prices to acquire or retain business.
−Removed: These factors could cause a material adverse impact on our financial condition, revenue, gross profit margins, or income.
+Added: These factors could have a material adverse impact on our financial condition, revenue, gross profit margins, or income.
Failure to meet stringent customer requirements could result in the loss of key customers and reduce our sales.
5 unchanged sentences
We cannot predict if these agreements will be renewed, or if renewed, under what terms.
−Removed: Although it is possible we could continue to sell products to these customers without formal agreements, an inability to agree on mutually acceptable terms could have a significant adverse impact on our revenue or profitability.
+Added: Although in the past we have continued to sell products to these customers without formal agreements, an inability to agree on mutually acceptable terms could have a significant adverse impact on our revenue or profitability.
Changes in tax law, in our tax rates, or in exposure to additional income tax liabilities may materially and adversely affect our financial condition, results of operations, and cash flows.
9 unchanged sentences
Our quality management system is certified to the ISO 9001 standard, and some of our products are also subject to independent certification and listings including by the VDE Institute and UL LLC.
−Removed: These certifications are subject to a number of rigorous conditions.
+Added: These certifications are subject to rigorous conditions.
Failure to achieve or maintain any of our certifications or listings could cause us to be disqualified by one or more of our customers and could have a material adverse impact on our business and revenue.
9 unchanged sentences
Our production process relies on certain critical pieces of equipment for defining, depositing, and modifying the magnetic properties of thin films.
−Removed: Some of this equipment was designed or customized by us, and some may no longer be in production.
+Added: Some of this equipment was designed or customized by us, and some is no longer in production.
While we have an in-house maintenance staff, maintenance agreements for certain equipment, some critical spare parts, and back-ups for some of the equipment, we cannot be sure we could repair or replace critical manufacturing equipment were it to fail.
We are subject to risks inherent in doing business in foreign countries that could impair our results of operations.
−Removed: Foreign sales are a significant portion of our revenue and we rely on suppliers in China, India, Taiwan, Thailand, and other foreign countries.
+Added: Foreign sales are a significant portion of our revenue and we rely on suppliers in China, India, Malaysia, Taiwan, Thailand, and other foreign countries.
Risks relating to operating in foreign markets that could impair our results of operations include economic and political instability;
4 unchanged sentences
transportation delays;
−Removed: and other uncertainties relating to the administration of, or changes in, or new interpretation of, the laws, regulations, and policies of jurisdictions where we do business.
+Added: and other uncertainties relating to the administration of, or changes in, or new interpretations of, the laws, regulations, and policies of jurisdictions where we do business.
Public health crises could have an adverse effect on our operations and financial results.
The COVID-19 pandemic disrupted our supply chains and caused employee absences.
−Removed: Impacts of the COVID-19 pandemic or other public health crises could have a material adverse effect on our results of operations or our financial condition.
+Added: Future public health crises could have a material adverse effect on our results of operations or our financial condition.
We are subject to risks associated with the availability of natural resources and energy.
−Removed: We use significant resources such as electricity, natural gas, and water in our production processes.
−Removed: New or increased climate change regulation could increase our energy costs, for example as a result of carbon pricing impacts on natural gas or electrical utilities.
−Removed: Furthermore, environmental regulations or the impacts of climate change could curtail the availability of electricity we need for production or increase the number of incidents of power outages.
+Added: We use significant resources such as electricity, natural gas, and water in our operations.
+Added: New or increased climate change regulation could increase our energy costs, for example, due to carbon pricing impacts on natural gas or electrical utilities.
+Added: Furthermore, environmental regulations or the impacts of climate change could curtail the availability of electricity we need for production or increase the incidence of power outages.
Increased natural resource or energy costs, or decreased availability, could have adverse effects on our results of operations by increasing our costs and expenses or requiring us to change our production processes.
3 unchanged sentences
We maintain policies and procedures for the mitigation of information technology risks, and we maintain data backups, backup hardware, and some redundant systems.
+Added: Our risk mitigation measures may not be effective in all scenarios, however.
We have experienced cyber security events and disruptions such as viruses, ransomware, hacker attacks, and limited server, Website, and e-mail outages.
−Removed: Although these events did not materially impact our business, future events could disrupt our operations, harm our reputation, expose us to liability, compromise our eligibility for research and development contracts involving sensitive or classified information, or have other effects including unpredictable effects.
+Added: Although these events did not materially impact our business, future events could disrupt our operations, harm our reputation, expose us to liability, compromise our eligibility for research and development contracts involving sensitive or classified information, or have other effects.
+Added: We face the risk of credit losses
+Added: Financial Accounting Standards Board Accounting Standards Update No.
+Added: 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements requires us to measure our allowance for credit losses based on the expected credit losses over the life of our receivables.
+Added: In the past fiscal year, we recorded significant expenses under this standard, although most of these expenses were later reversed.
+Added: Any future increases in our allowance for credit losses would have a negative impact on our financial results, including reducing our net income and net income per share.
We could incur losses on our marketable securities.
As of March 31, 2024, we held $52,548,876 in short-term and long-term marketable securities, representing approximately 79% of our total assets.
−Removed: Business conditions, bond-market conditions, and interest rates increases beyond our control or ability to anticipate can cause credit-rating downgrades, increased default risk, or unrealized losses.
+Added: Business conditions, bond-market conditions, and interest rate increases beyond our control or ability to anticipate can cause credit-rating downgrades, increased default risk, or unrealized losses.
Additionally, the assignment of a high credit rating does not preclude the risk of default on any marketable security.
−Removed: Any losses on our marketable securities could impact our financial condition, income, or cash flows, or our ability to pay dividends.
+Added: Any impairments of our marketable securities could impact our financial condition, income, or cash flows, or our ability to pay dividends.
We may not be able to enforce our intellectual property rights.
2 unchanged sentences
These patent rights may be challenged, rendered unenforceable, invalidated, or circumvented.
−Removed: Additionally, rights granted under the patents or under licensing agreements may not provide a competitive advantage to us.
Efforts to enforce patent rights can involve substantial expense and may not be successful.
5 unchanged sentences
We face an uncertain economic environment in the industries we serve, which could adversely affect our business.
−Removed: We sell our products into the semiconductor market, which has been highly cyclical.
+Added: We sell our products in the semiconductor market, which has been highly cyclical.
We cannot predict the timing, strength, or duration of any economic slowdown, recession, semiconductor-industry slowdown, or subsequent recovery.
10 unchanged sentences
Any decisions to reduce or discontinue paying cash dividends to our shareholders could cause the market price of our common stock to decline.
−Removed: Future dividends will be subject to Board approval and will take into account factors including our results of operations, cash and marketable security balances, the timing of securities maturations, estimates of future cash requirements, fixed asset requirements, and other factors our Board may deem relevant.
+Added: Future dividends will be subject to Board approval and will consider factors including our results of operations, cash and marketable security balances, the timing of securities maturations, estimates of future cash requirements, fixed asset requirements, and other factors our Board may deem relevant.
Because they are generally more than our current cash flow from operations, recent and declared dividend amounts may be unsustainable.
14 unchanged sentences
· our stock repurchase and dividend policies and decisions.
−Removed: UNRESOLVED STAFF COMMENTS.
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.