4 unchanged sentences
If any of the following risks or such other risks actually occurs, our business could be harmed.
+Added: Risks Related to Ownership of Our Common Stock
Our operating results are volatile and difficult to predict.
4 unchanged sentences
Some of the factors that could affect our operating results include the following:
−Removed: the demand for our products declining in the major end markets we serve, which may occur due to competitive factors, supply-chain fluctuations or changes in macroeconomic conditions;
+Added: ● we face risks related to the Novel Coronavirus pandemic (COVID-19), which has disrupted and may again disrupt our operations, including our manufacturing, research and development, and sales and marketing activities, which could have a material adverse impact on our business, financial condition, operating results and cash flows;
+Added: ● the volume and timing of delivery of orders placed by us with our wafer foundries and assembly subcontractors, and their ability to procure materials;
+Added: ● the volume and timing of orders received from customers;
● our products are sold through distributors, which limits our direct interaction with our end customers, which reduces our ability to forecast sales and increases the complexity of our business;
● reliance on international sales activities for a substantial portion of our net revenues;
−Removed: the volume and timing of delivery of orders placed by us with our wafer foundries and assembly subcontractors, and their ability to procure materials;
● competitive pressures on selling prices;
● the ability of our products to penetrate additional markets;
−Removed: the volume and timing of orders received from customers;
−Removed: fluctuations in exchange rates, particularly the exchange rate between the U.S.
−Removed: dollar and the Japanese yen, the Euro and the Swiss franc;
● our ability to develop and bring to market new products and technologies on a timely basis;
● the lengthy timing of our sales cycle;
−Removed: undetected defects and failures in meeting the exact specifications required by our products;
+Added: ● the demand for our products declining in the major end markets we serve, which may occur due to competitive factors, supply-chain fluctuations or changes in macroeconomic conditions;
● our ability to attract and retain qualified personnel;
+Added: ● interruptions in our information technology systems;
+Added: ● earthquakes, terrorists acts, pandemic or other disasters;
+Added: ● fluctuations in exchange rates, particularly the exchange rate between the U.S.
+Added: dollar and the Japanese yen, the Euro and the Swiss franc;
● the inability to adequately protect or enforce our intellectual property rights;
● expenses we are required to incur (or choose to incur) in connection with our intellectual property litigations;
−Removed: continued impact of changes in securities laws and regulations, including potential risks resulting from our evaluation of our internal controls over financial reporting;
+Added: ● undetected defects and failures in meeting the exact specifications required by our products;
+Added: ● risks associated with acquisitions and strategic investments;
+Added: ● our ability to successfully integrate, or realize the expected benefits from, our acquisitions;
● changes in tax rules and regulations, changes in interpretation of tax rules and regulations, or unfavorable assessments from tax audits may increase the amount of taxes we are required to pay;
● changes in environmental laws and regulations, including with respect to energy consumption and climate change;
−Removed: interruptions in our information technology systems;
+Added: ● continued impact of changes in securities laws and regulations, including potential risks resulting from our evaluation of our internal controls over financial reporting;
● uncertainties arising out of economic consequences of current and potential military actions or terrorist activities and associated political instability.
−Removed: risks associated with acquisitions and strategic investments;
−Removed: our ability to successfully integrate, or realize the expected benefits from, our acquisitions;
−Removed: earthquakes, terrorists acts, pandemic or other disasters.
−Removed: If demand for our products declines in our major end markets, our net revenues will decrease.
−Removed: A limited number of applications of our products, such as cellphone chargers and consumer appliances, make up a significant percentage of our net revenues.
−Removed: We expect that a significant level of our net revenues and operating results will continue to be dependent upon these applications in the near term.
−Removed: The demand for these products has been highly cyclical and has been impacted by economic downturns in the past.
−Removed: Any economic slowdown in the end markets that we serve could cause a slowdown in demand for our ICs.
−Removed: When our customers are not successful in maintaining high levels of demand for their products, their demand for our ICs decreases, which adversely affects our operating results.
−Removed: Any significant downturn in demand in these markets would cause our net revenues to decline and could cause the price of our stock to fall.
+Added: Risks Related to the Operation and Growth of Our Business
+Added: We face risks related to the Novel Coronavirus pandemic (COVID-19), which has disrupted and may again disrupt our operations, including our manufacturing, research and development, and sales and marketing activities, which could have a material adverse impact on our business, financial condition, operating results and cash flows .
+Added: Our business as well as the business of our suppliers, customers and distributors have been and may continue to be adversely impacted by the world-wide response to COVID-19 such as public health measures, travel restrictions, business shutdowns, border closures, delivery and freight delays and other disruptions.
+Added: These disruptions may adversely affect not only our sales and marketing activities, product development, manufacturing and product shipments which could negatively impact our ability to meet customer commitments but also our customers’ ability to manufacture their products, which could reduce their demand for our products.
+Added: The effects of the pandemic have resulted in a significant economic downturn in local and global economies, as well as a significant downturn in financial markets, and the continuing pandemic could result in further significant economic downturns which may result in reduced end-customer demand and materially impact our revenues.
+Added: All of these effects could have a material adverse effect on our customer relationships, operating results, cash flows, financial condition and have a negative impact on our stock price.
+Added: We depend on third-party suppliers to provide us with wafers for our products and if they fail to provide us sufficient quantities of wafers, our business may suffer .
+Added: Our primary supply arrangements for the production of wafers are with Epson, Lapis, and X-FAB.
+Added: Our contracts with these suppliers expire on varying dates, with the earliest to expire in December 2025.
+Added: Although some aspects of our relationships with Lapis, X-FAB and Epson are contractual, many important aspects of these relationships depend on their continued cooperation.
+Added: We cannot assure that we will continue to work successfully with Epson, Lapis and X-FAB in the future, and that the wafer foundries’ capacity will meet our needs.
+Added: Additionally, one or more of these wafer foundries could seek an early termination of our wafer supply agreements.
+Added: Any serious disruption in the supply of wafers from Epson, Lapis and X-FAB could harm our business.
+Added: We estimate that it would take 12 to 24 months from the time we identified an alternate manufacturing source to produce wafers with acceptable manufacturing yields in sufficient quantities to meet our needs.
+Added: Although we provide our foundries with rolling forecasts of our production requirements, their ability to provide wafers to us is ultimately limited by the available capacity of the wafer foundry.
+Added: Any reduction in wafer foundry capacity available to us could require us to pay amounts in excess of contracted or anticipated amounts for wafer deliveries or require us to make other concessions to meet our customers’ requirements, or may limit our ability to meet demand for our products.
+Added: Further, to the extent demand for our products exceeds wafer foundry capacity, this could inhibit us from expanding our business and harm relationships with our customers.
+Added: Any of these concessions or limitations could harm our business.
+Added: If our third-party suppliers and independent subcontractors do not produce our wafers and assemble our finished products at acceptable yields, our net revenues may decline.
+Added: We depend on independent foundries to produce wafers, and independent subcontractors to assemble and test finished products, at acceptable yields and to deliver them to us in a timely manner.
+Added: The failure of the foundries to supply us wafers at acceptable yields could prevent us from selling our products to our customers and would likely cause a decline in our net revenues and gross margin.
+Added: In addition, our IC assembly process requires our manufacturers to use a high-voltage molding compound that has been available from only a few suppliers.
+Added: These compounds and their specified processing conditions require a more exacting level of process control than normally required for standard IC packages.
+Added: Unavailability of assembly materials or problems with the assembly process can materially and adversely affect yields, timely delivery and cost to manufacture.
+Added: We may not be able to maintain acceptable yields in the future.
+Added: In addition, if prices for commodities used in our products increase significantly, raw material costs would increase for our suppliers which could result in an increase in the prices our suppliers charge us.
+Added: To the extent we are not able to pass these costs on to our customers;
+Added: this would have an adverse effect on our gross margins.
+Added: We do not have long-term contracts with any of our customers and if they fail to place, or if they cancel or reschedule orders for our products, our operating results and our business may suffer.
+Added: Our business is characterized by short-term customer orders and shipment schedules, and the ordering patterns of some of our large customers have been unpredictable in the past and will likely remain unpredictable in the future.
+Added: Not only does the volume of units ordered by particular customers vary substantially from period to period, but also purchase orders received from particular customers often vary substantially from early oral estimates provided by those customers for planning purposes.
+Added: In addition, customer orders can be canceled or rescheduled without significant penalty to the customer.
+Added: In the past, we have experienced customer cancellations of substantial orders for reasons beyond our control, and significant cancellations could occur again at any time.
+Added: Also, a relatively small number of distributors, OEMs and merchant power supply manufacturers account for a significant portion of our revenues.
+Added: Specifically, our top ten customers, including distributors, accounted for 62%, 54% and 56% of our net revenues in each of the years ended December 31, 2020, 2019 and 2018, respectively.
+Added: However, a significant portion of these revenues are attributable to sales of our products through distributors of electronic components.
+Added: These distributors sell our products to a broad, diverse range of end users, including OEMs and merchant power supply manufacturers, which mitigates the risk of customer concentration to a large degree.
Our products are sold through distributors, which limits our direct interaction with our end customers, therefore reducing our ability to forecast sales and increasing the complexity of our business.
9 unchanged sentences
Our international sales activities account for a substantial portion of our net revenues, which subjects us to substantial risks.
−Removed: Sales to customers outside of the United States of America account for, and have accounted for a large portion of our net revenues, including approximately 97% of our net revenues for the year ended December 31, 2019 , and 96% in each of 2018 and 2017.
+Added: Sales to customers outside of the United States of America account for, and have accounted for a large portion of our net revenues, including approximately 98%, 97% and 96% of our net revenues for the year ended December 31, 2020, 2019 and 2018.
If our international sales declined and we were unable to increase domestic sales, our revenues would decline and our operating results would be harmed.
10 unchanged sentences
dollars, increases in the value of the dollar cause the price of our products in foreign markets to rise, making our products more expensive relative to competing products priced in local currencies.
−Removed: We depend on third-party suppliers to provide us with wafers for our products and if they fail to provide us sufficient quantities of wafers, our business may suffer .
−Removed: Our primary supply arrangements for the production of wafers are with Epson, Lapis, and X-FAB.
−Removed: Our contracts with these suppliers expire on varying dates, with the earliest to expire in December 2025.
−Removed: Although some aspects of our relationships with Lapis, X-FAB and Epson are contractual, many important aspects of these relationships depend on their continued cooperation.
−Removed: We cannot assure that we will continue to work successfully with Epson, Lapis and X-FAB in the future, and that the wafer foundries’ capacity will meet our needs.
−Removed: Additionally, one or more of these wafer foundries could seek an early termination of our wafer supply agreements.
−Removed: Any serious disruption in the supply of wafers from Epson, Lapis and X-FAB could harm our business.
−Removed: We estimate that it would take 12 to 24 months from the time we identified an alternate manufacturing source to produce wafers with acceptable manufacturing yields in sufficient quantities to meet our needs.
−Removed: Although we provide our foundries with rolling forecasts of our production requirements, their ability to provide wafers to us is ultimately limited by the available capacity of the wafer foundry.
−Removed: Any reduction in wafer foundry capacity available to us could require us to pay amounts in excess of contracted or anticipated amounts for wafer deliveries or require us to make other concessions to meet our customers’ requirements, or may limit our ability to meet demand for our products.
−Removed: Further, to the extent demand for our products exceeds wafer foundry capacity, this could inhibit us from expanding our business and harm relationships with our customers.
−Removed: Any of these concessions or limitations could harm our business.
−Removed: If our third-party suppliers and independent subcontractors do not produce our wafers and assemble our finished products at acceptable yields, our net revenues may decline.
−Removed: We depend on independent foundries to produce wafers, and independent subcontractors to assemble and test finished products, at acceptable yields and to deliver them to us in a timely manner.
−Removed: The failure of the foundries to supply us wafers at acceptable yields could prevent us from selling our products to our customers and would likely cause a decline in our net revenues and gross margin.
−Removed: In addition, our IC assembly process requires our manufacturers to use a high-voltage molding compound that has been available from only a few suppliers.
−Removed: These compounds and their specified processing conditions require a more exacting level of process control than normally required for standard IC packages.
−Removed: Unavailability of assembly materials or problems with the assembly process can materially and adversely affect yields, timely delivery and cost to manufacture.
−Removed: We may not be able to maintain acceptable yields in the future.
−Removed: In addition, if prices for commodities used in our products increase significantly, raw material costs would increase for our suppliers which could result in an increase in the prices our suppliers charge us.
−Removed: To the extent we are not able to pass these costs on to our customers;
−Removed: this would have an adverse effect on our gross margins.
Intense competition in the high-voltage power supply industry may lead to a decrease in our average selling price and reduced sales volume of our products.
12 unchanged sentences
To the extent that a competitor penetrates additional markets before we do, or takes market share from us in our existing markets, our net revenues and financial condition could be materially adversely affected.
−Removed: We do not have long-term contracts with any of our customers and if they fail to place, or if they cancel or reschedule orders for our products, our operating results and our business may suffer.
−Removed: Our business is characterized by short-term customer orders and shipment schedules, and the ordering patterns of some of our large customers have been unpredictable in the past and will likely remain unpredictable in the future.
−Removed: Not only does the volume of units ordered by particular customers vary substantially from period to period, but also purchase orders received from particular customers often vary substantially from early oral estimates provided by those customers for planning purposes.
−Removed: In addition, customer orders can be canceled or rescheduled without significant penalty to the customer.
−Removed: In the past, we have experienced customer cancellations of substantial orders for reasons beyond our control, and significant cancellations could occur again at any time.
−Removed: Also, a relatively small number of distributors, OEMs and merchant power supply manufacturers account for a significant portion of our revenues.
−Removed: Specifically, our top ten customers, including distributors, accounted for 54% , 56% and 54% of our net revenues in each of the years ended December 31, 2019 , 2018 and 2017, respectively.
−Removed: However, a significant portion of these revenues are attributable to sales of our products through distributors of electronic components.
−Removed: These distributors sell our products to a broad, diverse range of end users, including OEMs and merchant power supply manufacturers, which mitigates the risk of customer concentration to a large degree.
−Removed: Fluctuations in exchange rates, particularly the exchange rate between the U.S.
−Removed: dollar and the Japanese yen, Swiss franc and euro, may impact our gross margin and net income .
−Removed: Our exchange rate risk related to the Japanese yen includes two of our major suppliers, Epson and Lapis, with which we have wafer supply agreements based in U.S.
−Removed: however, these agreements also allow for mutual sharing of the impact of the exchange rate fluctuation between Japanese yen and the U.S.
−Removed: Each year, our management and these suppliers review and negotiate pricing;
−Removed: the negotiated pricing is denominated in U.S.
−Removed: dollars but is subject to contractual exchange rate provisions.
−Removed: The fluctuation in the exchange rate is shared equally between Power Integrations and each of these suppliers.
−Removed: We maintain cash denominated in Swiss francs and euros to fund the operations of our Swiss subsidiary.
−Removed: The functional currency of our Swiss subsidiary is the U.S.
−Removed: gains and losses arising from the re-measurement of non-functional currency balances are recorded in other income in our consolidated statements of income, and material unfavorable exchange-rate fluctuations with the Swiss franc could negatively impact our net income.
If our efforts to enhance existing products and introduce new products are not successful, we may not be able to generate demand for our products .
5 unchanged sentences
Our failure, or our customers’ failure, to develop and introduce new products successfully and in a timely manner would harm our business.
−Removed: In addition, customers may defer or return orders for existing products in response to the introduction of new products.
+Added: In addition, customers may defer or return orders for existing products
+Added: in response to the introduction of new products.
When a potential liability exists we will maintain reserves for customer returns, however we cannot assure that these reserves will be adequate.
6 unchanged sentences
If a customer decides at the design stage not to incorporate our products into its product, we may not have another opportunity for a design win with respect to that product for many months or years.
−Removed: Our products must meet exacting specifications, and undetected defects and failures may occur which may cause customers to return or stop buying our products and/or impose significant costs to us.
−Removed: Our customers generally establish demanding specifications for quality, performance and reliability, and our products must meet these specifications.
−Removed: ICs as complex as those we sell often encounter development delays and may contain undetected defects or failures when first introduced or after commencement of commercial shipments.
−Removed: We have from time to time in the past experienced product quality, performance or reliability problems.
−Removed: If defects and failures occur in our products, we could experience lost revenue, increased costs, including product warranty or liability claims and costs associated with customer support and product recalls, delays in or cancellations or rescheduling of orders or shipments and product returns or discounts.
−Removed: While we specifically exclude consequential damages in our standard terms and conditions, certain of our contracts may not exclude such liabilities.
−Removed: Our liability insurance which covers certain damages arising out of product defects may not cover all claims or be of a sufficient amount to fully protect against such claims.
−Removed: Costs or payments in connection with such claims could harm our operating results.
+Added: If demand for our products declines in our major end markets, our net revenues will decrease.
+Added: A limited number of applications of our products, such as cellphone chargers and consumer appliances, make up a significant percentage of our net revenues.
+Added: We expect that a significant level of our net revenues and operating results will continue to be dependent upon these applications in the near term.
+Added: The demand for these products has been highly cyclical and has been impacted by economic downturns in the past.
+Added: Any economic slowdown in the end markets that we serve could cause a slowdown in demand for our ICs.
+Added: When our customers are not successful in maintaining high levels of demand for their products, their demand for our ICs decreases, which adversely affects our operating results.
+Added: Any significant downturn in demand in these markets would cause our net revenues to decline and could cause the price of our stock to fall.
We must attract and retain qualified personnel to be successful and competition for qualified personnel is intense in our market.
4 unchanged sentences
We do not have long-term employment contracts with, and we do not have in place key person life insurance policies on, any of our employees.
+Added: Interruptions in our information technology systems could adversely affect our business.
+Added: We rely on the efficient and uninterrupted operation of complex information technology systems and networks to operate our business.
+Added: Any significant system or network disruption, including but not limited to new system implementations, computer viruses, security breaches, or energy blackouts could have a material adverse impact on our operations, sales and operating results.
+Added: We have implemented measures to manage our risks related to such disruptions, but such disruptions could still occur and negatively impact our operations and financial results.
+Added: In addition, we may incur additional costs to remedy any damages caused by these disruptions or security breaches.
+Added: In the event of an earthquake, terrorist act, another pandemic or other disaster, our operations may be interrupted and our business would be harmed.
+Added: Our principal executive offices and operating facilities are situated near San Francisco, California, and most of our major suppliers, which are wafer foundries and assembly houses, are located in areas that have been subject to severe earthquakes, such as Japan.
+Added: Many of our suppliers are also susceptible to other disasters such as tropical storms, typhoons or tsunamis.
+Added: In the event of a disaster, such as the earthquake and tsunami in Japan, we or one or more of our major suppliers may be temporarily unable to continue operations and may suffer significant property damage.
+Added: Any interruption in our ability or that of our major suppliers to continue operations could delay the development and shipment of our products and have a substantial negative impact on our financial results.
+Added: Risks Related to Financial Performance or General Economic Conditions
+Added: Fluctuations in exchange rates, particularly the exchange rate between the U.S.
+Added: dollar and the Japanese yen, Swiss franc and euro, may impact our gross margin and net income .
+Added: Our exchange rate risk related to the Japanese yen includes two of our major suppliers, Epson and Lapis, with which we have wafer supply agreements based in U.S.
+Added: however, these agreements also allow for mutual sharing of the impact of the exchange rate fluctuation between Japanese yen and the U.S.
+Added: Each year, our management and these suppliers review and negotiate pricing;
+Added: the negotiated pricing is denominated in U.S.
+Added: dollars but is subject to contractual exchange rate provisions.
+Added: The fluctuation in the exchange rate is shared equally between Power Integrations and each of these suppliers.
+Added: We maintain cash denominated
+Added: in Swiss francs and euros to fund the operations of our Swiss subsidiary.
+Added: The functional currency of our Swiss subsidiary is the U.S.
+Added: gains and losses arising from the re-measurement of non-functional currency balances are recorded in other income in our consolidated statements of income, and material unfavorable exchange-rate fluctuations with the Swiss franc could negatively impact our net income.
If we are unable to adequately protect or enforce our intellectual property rights, we could lose market share, incur costly litigation expenses, suffer incremental price erosion or lose valuable assets, any of which could harm our operations and negatively impact our profitability.
15 unchanged sentences
Thus, even if we are successful in these lawsuits, the benefits of this success may fail to outweigh the significant legal costs we will have incurred.
−Removed: Securities laws and regulations, including potential risk resulting from our evaluation of internal controls over financial reporting, will continue to impact our results .
−Removed: Complying with the requirements of the federal securities laws and Nasdaq’s conditions for continued listing have imposed significant legal and financial compliance costs, and are expected to continue to impose significant costs and management burden on us.
−Removed: These rules and regulations also may make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage.
−Removed: These rules and regulations could also make it more difficult for us to attract and retain qualified executive officers and members of our board of directors, particularly qualified members to serve on our audit committee.
−Removed: Further, the rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which became effective in 2011, may impose significant costs and management burden on us.
−Removed: Additionally, because these laws, regulations and standards are expected to be subject to varying interpretations, their application in practice may evolve over time as new guidance becomes available.
−Removed: This evolution may result in continuing uncertainty regarding compliance matters and additional costs necessitated by ongoing revisions to our disclosure and governance practices.
+Added: Our products must meet exacting specifications, and undetected defects and failures may occur which may cause customers to return or stop buying our products and/or impose significant costs to us.
+Added: Our customers generally establish demanding specifications for quality, performance and reliability, and our products must meet these specifications.
+Added: ICs as complex as those we sell often encounter development delays and may contain undetected defects or failures when first introduced or after commencement of commercial shipments.
+Added: We have from time to time in the past experienced product quality, performance or reliability problems.
+Added: If defects and failures occur in our products, we could experience lost revenue, increased costs, including product warranty or liability claims and costs associated with customer support and product recalls, delays in or cancellations or rescheduling of orders or shipments and product returns or discounts.
+Added: While we specifically exclude consequential damages in our standard terms and conditions, certain of our contracts may not exclude such liabilities.
+Added: Our liability insurance which covers certain damages arising out of product defects may not cover all claims or be of a sufficient amount to fully protect against such claims.
+Added: Costs or payments in connection with such claims could harm our operating results.
+Added: We are exposed to risks associated with acquisitions and strategic investments .
+Added: We have made, and in the future intend to make, acquisitions of, and investments in, companies, technologies or products in existing, related or new markets.
+Added: Acquisitions involve numerous risks, including but not limited to:
+Added: ● inability to realize anticipated benefits, which may occur due to any of the reasons described below, or for other unanticipated reasons
+Added: ● the risk of litigation or disputes with customers, suppliers, partners or stockholders of an acquisition target arising from a proposed or completed transaction;
+Added: ● impairment of acquired intangible assets and goodwill as a result of changing business conditions, technological advancements or worse-than-expected performance, which would adversely affect our financial results;
+Added: ● unknown, underestimated and/or undisclosed commitments, liabilities or issues not discovered in our due diligence of such transactions.
+Added: We also in the future may have strategic relationships with other companies, which may decline in value and/or not meet desired objectives.
+Added: The success of these strategic relationships depends on various factors over which we may have limited or no control and requires ongoing and effective cooperation with strategic partners.
+Added: Moreover, these relationships are often illiquid, such that it may be difficult or impossible for us to monetize such relationships.
+Added: Our inability to successfully integrate, or realize the expected benefits from, our acquisitions could adversely affect our results.
+Added: We have made, and in the future intend to make, acquisitions of other businesses and with these acquisitions there is a risk that integration difficulties may cause us not to realize expected benefits.
+Added: The success of the acquisitions could depend, in part, on our ability to realize the anticipated benefits and cost savings (if any) from combining the businesses of the acquired companies and our business, which may take longer to realize than expected.
+Added: Risks Related to Laws and Regulations
Changes in tax rules and regulations, changes in interpretation of tax rules and regulations, or unfavorable assessments from tax audits may increase the amount of taxes we are required to pay .
18 unchanged sentences
The inability to accurately determine our customers’ strategies could increase our inventory costs related to obsolescence.
−Removed: Interruptions in our information technology systems could adversely affect our business.
−Removed: We rely on the efficient and uninterrupted operation of complex information technology systems and networks to operate our business.
−Removed: Any significant system or network disruption, including but not limited to new system implementations, computer viruses, security breaches, or energy blackouts could have a material adverse impact on our operations, sales and operating results.
−Removed: We have implemented measures to manage our risks related to such disruptions, but such disruptions could still occur and negatively impact our operations and financial results.
−Removed: In addition, we may incur additional costs to remedy any damages caused by these disruptions or security breaches.
+Added: General Risk Factors
+Added: Securities laws and regulations, including potential risk resulting from our evaluation of internal controls over financial reporting, will continue to impact our results .
+Added: Complying with the requirements of the federal securities laws and Nasdaq’s conditions for continued listing have imposed significant legal and financial compliance costs, and are expected to continue to impose significant costs and management burden on us.
+Added: These rules and regulations also may make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage.
+Added: These rules and regulations could also make it more
+Added: difficult for us to attract and retain qualified executive officers and members of our board of directors, particularly qualified members to serve on our audit committee.
+Added: Further, the rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which became effective in 2011, may impose significant costs and management burden on us.
+Added: Additionally, because these laws, regulations and standards are expected to be subject to varying interpretations, their application in practice may evolve over time as new guidance becomes available.
+Added: This evolution may result in continuing uncertainty regarding compliance matters and additional costs necessitated by ongoing revisions to our disclosure and governance practices.
Uncertainties arising out of economic consequences of current and potential military actions or terrorist activities and associated political instability could adversely affect our business.
3 unchanged sentences
Any of these results could substantially harm our business and results of operations, causing a decrease in our revenues.
−Removed: We are exposed to risks associated with acquisitions and strategic investments .
−Removed: We have made, and in the future intend to make, acquisitions of, and investments in, companies, technologies or products in existing, related or new markets.
−Removed: Acquisitions involve numerous risks, including but not limited to:
−Removed: inability to realize anticipated benefits, which may occur due to any of the reasons described below, or for other unanticipated reasons
−Removed: the risk of litigation or disputes with customers, suppliers, partners or stockholders of an acquisition target arising from a proposed or completed transaction;
−Removed: impairment of acquired intangible assets and goodwill as a result of changing business conditions, technological advancements or worse-than-expected performance, which would adversely affect our financial results;
−Removed: unknown, underestimated and/or undisclosed commitments, liabilities or issues not discovered in our due diligence of such transactions.
−Removed: We also in the future may have strategic relationships with other companies, which may decline in value and/or not meet desired objectives.
−Removed: The success of these strategic relationships depends on various factors over which we may have limited or no control and requires ongoing and effective cooperation with strategic partners.
−Removed: Moreover, these relationships are often illiquid, such that it may be difficult or impossible for us to monetize such relationships.
−Removed: Our inability to successfully integrate, or realize the expected benefits from, our acquisitions could adversely affect our results.
−Removed: We have made, and in the future intend to make, acquisitions of other businesses and with these acquisitions there is a risk that integration difficulties may cause us not to realize expected benefits.
−Removed: The success of the acquisitions could depend, in part, on our ability to realize the anticipated benefits and cost savings (if any) from combining the businesses of the acquired companies and our business, which may take longer to realize than expected.
−Removed: In the event of an earthquake, terrorist act, pandemic or other disaster, our operations may be interrupted and our business would be harmed.
−Removed: Our principal executive offices and operating facilities are situated near San Francisco, California, and most of our major suppliers, which are wafer foundries and assembly houses, are located in areas that have been subject to severe earthquakes, such as Japan.
−Removed: Many of our suppliers are also susceptible to other disasters such as tropical storms, typhoons or tsunamis.
−Removed: In the event of a disaster, such as the earthquake and tsunami in Japan, we or one or more of our major suppliers may be temporarily unable to continue operations and may suffer significant property damage.
−Removed: Any interruption in our ability or that of our major suppliers to continue operations could delay the development and shipment of our products and have a substantial negative impact on our financial results.
Unresolved Staff Comments.
1 unchanged sentence
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.