12 unchanged sentences
● 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;
−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;
+Added: ● risks associated with our supply chain including, the volume, cost and timing of delivery of orders placed by us with our wafer foundries and assembly subcontractors, and their ability to procure materials;
● the volume and timing of orders received from customers;
1 unchanged sentence
● reliance on international sales activities for a substantial portion of our net revenues;
+Added: ● our ability to attract and retain qualified personnel;
+Added: ● interruptions in our information technology systems;
● competitive pressures on selling prices;
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● 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;
−Removed: ● our ability to attract and retain qualified personnel;
−Removed: ● interruptions in our information technology systems;
−Removed: ● earthquakes, terrorists acts, pandemic or other disasters;
+Added: ● earthquakes, fire, pandemics or other disasters;
+Added: ● undetected defects and failures in meeting the exact specifications required by our products;
● fluctuations in exchange rates, particularly the exchange rate between the U.S.
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● expenses we are required to incur (or choose to incur) in connection with our intellectual property litigations;
−Removed: ● undetected defects and failures in meeting the exact specifications required by our products;
−Removed: ● risks associated with acquisitions and strategic investments;
−Removed: ● 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;
+Added: ● risks associated with acquisitions and strategic investments;
+Added: ● our ability to successfully integrate, or realize the expected benefits from, our acquisitions;
● continued impact of changes in securities laws and regulations, including potential risks resulting from our evaluation of our internal controls over financial reporting;
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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 98%, 97% and 96% of our net revenues for the year ended December 31, 2020, 2019 and 2018.
+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% of our net revenues for the years ended December 31, 2021 and 2020, and 97% of our net revenue for the year ended December 31, 2019.
If our international sales declined and we were unable to increase domestic sales, our revenues would decline and our operating results would be harmed.
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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.
+Added: We must attract and retain qualified personnel to be successful and competition for qualified personnel is intense in our market.
+Added: Our success depends to a significant extent upon the continued service of our executive officers and other key management and technical personnel, and on our ability to continue to attract, retain and motivate qualified personnel, such as experienced analog design engineers and systems applications engineers.
+Added: The competition for these employees is intense, particularly in Silicon Valley.
+Added: The loss of the services of one or more of our engineers, executive officers or other key personnel could harm our business.
+Added: In addition, if one or more of these individuals leaves our employ, and we are unable to quickly and efficiently replace those individuals with qualified personnel who can smoothly transition into their new roles, our business may suffer.
+Added: 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.
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.
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If power requirements for applications in which our products are currently utilized go outside the cost-effective range of our products, some of these alternative technologies can be used more cost effectively.
−Removed: In addition, as our patents expire, our competitors could legally begin using the technology covered by the expired patents in their products, potentially increasing the performance of their products and/or decreasing the cost of their products, which may enable our competitors to compete more effectively.
+Added: In addition, as our patents expire, our competitors could
+Added: legally begin using the technology covered by the expired patents in their products, potentially increasing the performance of their products and/or decreasing the cost of their products, which may enable our competitors to compete more effectively.
Our current patents may or may not inhibit our competitors from getting any benefit from an expired patent.
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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
−Removed: in response to the introduction of new products.
+Added: In addition, customers may defer or return orders for existing products 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.
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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.
−Removed: We must attract and retain qualified personnel to be successful and competition for qualified personnel is intense in our market.
−Removed: Our success depends to a significant extent upon the continued service of our executive officers and other key management and technical personnel, and on our ability to continue to attract, retain and motivate qualified personnel, such as experienced analog design engineers and systems applications engineers.
−Removed: The competition for these employees is intense, particularly in Silicon Valley.
−Removed: The loss of the services of one or more of our engineers, executive officers or other key personnel could harm our business.
−Removed: In addition, if one or more of these individuals leaves our employ, and we are unable to quickly and efficiently replace those individuals with qualified personnel who can smoothly transition into their new roles, our business may suffer.
−Removed: 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.
−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.
−Removed: 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: In the event of an earthquake, fire, other pandemics, natural or other disasters, including with respect to climate change, our operations may be interrupted and our business would be harmed.
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.
−Removed: Risks Related to Financial Performance or General Economic Conditions
+Added: Many of our suppliers are also susceptible to other disasters such as tropical storms, typhoons, tsunamis or other catastrophic events, including those caused by climate change.
+Added: In the event of a disaster, 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
+Added: 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: 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: Risks Related to Financial Performance
Fluctuations in exchange rates, particularly the exchange rate between the U.S.
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The fluctuation in the exchange rate is shared equally between Power Integrations and each of these suppliers.
−Removed: We maintain cash denominated
−Removed: in Swiss francs and euros to fund the operations of our Swiss subsidiary.
+Added: We maintain cash denominated in Swiss francs and euros to fund the operations of our Swiss subsidiary.
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.
+Added: gains and losses arising from the remeasurement 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.
+Added: Risks Related to Our Intellectual Property
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.
12 unchanged sentences
Should we ultimately be determined to be infringing another party’s patents, or if an injunction is issued against us while litigation is pending on those claims, such result could have an adverse impact on our ability to sell products found to be infringing, either directly or indirectly.
−Removed: In the event of an adverse outcome, we may be required to pay substantial damages, stop our manufacture, use, sale, or importation of infringing products, or obtain licenses to the intellectual property we are found to have infringed.
+Added: In the event of an adverse outcome, we may be required to pay substantial damages, stop our manufacture, use, sale, or importation of infringing products, or
+Added: obtain licenses to the intellectual property we are found to have infringed.
We have also incurred, and expect to continue to incur, significant legal costs in conducting these lawsuits, including the appeal of the case we won, and our involvement in this litigation and any future intellectual property litigation could adversely affect sales and divert the efforts and attention of our technical and management personnel, whether or not such litigation is resolved in our favor.
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: 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.
−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.
Risks Related to Laws and Regulations
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Furthermore, changes to the taxation of undistributed foreign earnings could change our future intentions regarding reinvestment of such earnings.
+Added: As of December 31, 2021, we are currently subject to an ongoing audit with the California Franchise Tax Board for the tax years 2018 and 2019.
The foregoing items could have a material effect on our business, cash flow, results of operations or financial conditions.
−Removed: Changes in environmental laws and regulations may increase our costs related to obsolete products in our existing inventory .
+Added: Changes in environmental laws and regulations, including with respect to energy consumption and climate change, may have a negative impact on our business .
Changing environmental regulations and the timetable to implement them continue to impact our customers’ demand for our products.
−Removed: As a result, there could be an increase in our inventory obsolescence costs for products manufactured prior to our customers’ adoption of new regulations.
Currently we have limited visibility into our customers’ strategies to implement these changing environmental regulations into their business.
The inability to accurately determine our customers’ strategies could increase our inventory costs related to obsolescence.
+Added: The semiconductor industry is subject to environmental regulations, particularly those that control and restrict the sourcing, use, transportation, storage, and disposal of certain mineral, chemicals, and materials used in the semiconductor manufacturing process.
+Added: We expect the heightened worldwide awareness regarding climate change and the environmental impact to continue, which may result in new environmental laws and regulations that could affect us, our suppliers and/or our customers.
+Added: New environmental laws and regulations could require us or our suppliers to obtain alternative materials that may increase our costs more or be less available, which may adversely affect our operating results.
General Risk Factors
+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.
Securities laws and regulations, including potential risk resulting from our evaluation of internal controls over financial reporting, will continue to impact our results .
1 unchanged sentence
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
−Removed: 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: 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.
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.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.