15 unchanged sentences
● 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;
+Added: ● the ability of our products to penetrate additional markets;
+Added: ● our ability to develop and bring to market new products and technologies on a timely basis;
+Added: ● failure, disruption, security breaches, or other incidents impacting our information technology infrastructure or information management systems;
● interruptions in our information technology systems;
3 unchanged sentences
● our ability to attract and retain qualified personnel;
−Removed: ● the ability of our products to penetrate additional markets;
−Removed: ● our ability to develop and bring to market new products and technologies on a timely basis;
● the lengthy timing of our sales cycle;
7 unchanged sentences
● changes in environmental laws and regulations, including with respect to energy consumption and climate change;
−Removed: ● uncertainties arising out of economic consequences of current and potential military actions, such as Russia’s invasion of Ukraine, or terrorist activities and associated political instability;
+Added: ● uncertainties arising out of economic consequences of current and potential military actions, including current on-going conflicts in Ukraine and the Middle East, or terrorist activities and associated political instability;
● risks associated with acquisitions and strategic investments;
7 unchanged sentences
Demand for end products incorporating our products has been highly cyclical over time and has been impacted by economic downturns;
−Removed: our recent results have been impacted by economic conditions including
−Removed: inflation and the effects of anti-COVID measures in China.
+Added: our recent results have been impacted by economic conditions including inflation and the effects of anti-COVID measures in China.
Any further economic slowdown in the end markets that we serve could cause a further slowdown in demand for our ICs, causing our net revenues to decline further and potentially result in write-offs of excess or obsolete inventory, which could cause the price of our stock to fall.
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 96% for the year ended December 31, 2022 and 98% of our net revenues for the years ended December 31, 2021 and 2020, respectively.
+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%, 96% and 98% of our net revenues for the years ended December 31, 2023, 2022 and 2021, respectively.
If our international sales declined and we were unable to increase domestic sales, our revenues would decline and our operating results would be harmed.
4 unchanged sentences
● the impact of recessionary environments and inflation in the United States and other economies where we do business;
−Removed: ● global, regional, and local economic and political conditions, including, but not limited to, social, economic, political, and supply chain instability related to the uncertainty regarding relationships among the international community as a whole, as well as related to armed conflicts that exist, or in the future could exist, in various parts of the world;
+Added: ● global, regional, and local economic and political conditions, including, but not limited to, social, economic, political, and supply chain instability related to the uncertainty regarding relationships among the international community as a whole including potential risks stemming from tensions between China and Taiwan and between China and Western countries, as well as related to armed conflicts that exist, or in the future could exist, in various parts of the world;
● the burdens of complying with a variety of foreign and applicable U.S.
7 unchanged sentences
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.
+Added: In addition, customer
+Added: orders can be canceled or rescheduled without significant penalty to the customer.
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.
13 unchanged sentences
Any failure to manage these complexities could disrupt or reduce sales of our products and unfavorably impact our financial results.
+Added: If our products do not penetrate additional markets, our business will not grow as we expect.
+Added: We believe that our future success depends in part upon our ability to penetrate additional markets for our products.
+Added: We cannot assure that we will be able to overcome the marketing or technological challenges necessary to penetrate additional markets.
+Added: 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.
+Added: 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 .
+Added: Our success depends in significant part upon our ability to develop new ICs for high-voltage power conversion for existing and new markets, to introduce these products in a timely manner and to have these products selected for design into products of leading manufacturers.
+Added: New product introduction schedules are subject to the risks and uncertainties that typically accompany development and delivery of complex technologies to the market place, including product development delays and defects.
+Added: If we fail to develop and sell new products in a timely manner, then our net revenues could decline.
+Added: In addition, we cannot be sure that we will be able to adjust to changing market demands as quickly and cost-effectively as necessary to compete successfully.
+Added: Furthermore, we cannot assure that we will be able to introduce new products in a timely and cost-effective manner or in sufficient quantities to meet customer demand or that these products will achieve market acceptance.
+Added: Our failure, or our customers’ failure, to develop and introduce new products successfully and in a timely manner would harm our business.
+Added: In addition, customers may defer or return orders for existing products in response to the introduction of new products.
+Added: When a potential liability exists we will maintain reserves for customer returns, however we cannot assure that these reserves will be adequate.
+Added: Any failure, disruption or security breach or incident otherwise impacting our information technology infrastructure or information management systems could have an adverse impact on our business and operations.
+Added: Cyber-attacks have become increasingly more prevalent and much harder to detect, defend against or prevent.
+Added: As the frequency of cyber-attacks and resulting breaches reported by other businesses and governments increases, we expect to continue to devote significant resources to improve and maintain our IT infrastructure.
+Added: We have incurred and may in the future incur significant costs in order to implement, maintain and/or update security systems we believe are necessary to protect our IT infrastructure.
+Added: As the techniques used to obtain unauthorized access or to sabotage systems change frequently and are often not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventive measures.
+Added: A breakdown in existing controls and procedures around our cyber-security environment may prevent us from detecting, reporting or responding to cyber incidents in a timely manner and could have a material adverse
+Added: effect on our financial position and value of our stock.
+Added: We cannot guarantee that our implemented processes for IT and risk mitigation measures will be effective for IT systems under our control.
+Added: Furthermore, we rely on products and services provided by third-party suppliers to operate certain critical business systems.
+Added: We cannot guarantee that third parties and infrastructure in our supply chain or our partners’ supply chains have not been or will not be compromised or that they do not or will not in the future contain exploitable defects or bugs that could result in a breach of or disruption to our IT infrastructure, including our products and services, or the third-party information technology systems that support our services.
+Added: We have limited insight into the data privacy or security practices of third-party service providers.
+Added: Our ability to monitor these third parties’ information security practices is limited, and they may not have adequate information security measures in place.
+Added: If one of our third-party suppliers suffers a security breach, our response may be limited or more difficult because we may not have direct access to their systems, logs and other information related to the security breach.
Interruptions in our information technology systems could adversely affect our business.
14 unchanged sentences
We believe our failure to compete successfully in the high-voltage power supply business, including our ability to introduce new products with higher average selling prices, would materially harm our operating results.
−Removed: 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: 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.
−Removed: These disruptions may continue to 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 continue to reduce their demand for our products.
−Removed: 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.
−Removed: 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 face risks related to global health crises, such as the COVID-19 pandemic, which have 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 was impacted by the COVID-19 pandemic and may in the future be adversely impacted by the world-wide response to any further global health crises.
+Added: Such impacts include 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 COVID-19 pandemic caused a significant economic downturn in local and global economies and in financial markets.
+Added: Any future global health crisis could have similar economic consequences which may result in reduced demand for our products and have a material adverse effect on our revenues, customer relationships, operating results, cash flows, financial condition and stock price.
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 .
5 unchanged sentences
Any serious disruption in the supply of wafers from Epson, Lapis and X-FAB could harm our business.
−Removed: We estimate that it
−Removed: 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: 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.
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.
18 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.
−Removed: If our products do not penetrate additional markets, our business will not grow as we expect.
−Removed: We believe that our future success depends in part upon our ability to penetrate additional markets for our products.
−Removed: We cannot assure that we will be able to overcome the marketing or technological challenges necessary to penetrate additional markets.
−Removed: 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: 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 .
−Removed: Our success depends in significant part upon our ability to develop new ICs for high-voltage power conversion for existing and new markets, to introduce these products in a timely manner and to have these products selected for design into products of leading manufacturers.
−Removed: New product introduction schedules are subject to the risks and uncertainties that typically accompany development and delivery of complex technologies to the market place, including product development delays and defects.
−Removed: If we fail to develop and sell new products in a timely manner, then our net revenues could decline.
−Removed: In addition, we cannot be sure that we will be able to adjust to changing market demands as quickly and cost-effectively as necessary to compete successfully.
−Removed: Furthermore, we cannot assure that we will be able to introduce new products in a timely and cost-effective manner or in sufficient quantities to meet customer demand or that these products will achieve market acceptance.
−Removed: 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.
−Removed: When a potential liability exists we will maintain reserves for customer returns, however we cannot assure that these reserves will be adequate.
Because the sales cycle for our products can be lengthy, we may incur substantial expenses before we generate significant revenues, if any.
35 unchanged sentences
We cannot assure that the steps we have taken to protect our intellectual property will be adequate to prevent misappropriation, or that others will not develop competitive technologies or products.
−Removed: From time to time, we have received, and we may receive in the future,
−Removed: communications alleging possible infringement of patents or other intellectual property rights of others.
+Added: From time to time, we have received, and we may receive in the future, communications alleging possible infringement of patents or other intellectual property rights of others.
Costly litigation may be necessary to enforce our intellectual property rights or to defend us against claimed infringement.
9 unchanged sentences
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.
−Removed: 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.
+Added: Thus, even if
+Added: we are successful in these lawsuits, the benefits of this success may fail to outweigh the significant legal costs we will have incurred.
Risks Related to Laws and Regulations
4 unchanged sentences
These potential changes could adversely affect our effective tax rates or result in other costs to us.
−Removed: Recently enacted U.S.
−Removed: tax legislation has significantly changed the taxation of U.S.-based multinational corporations, by, among other things, reducing the U.S.
−Removed: corporate income tax rate, adopting elements of a territorial tax system, assessing a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and the creation of new taxes on certain foreign-sourced earnings.
−Removed: The legislation as initially enacted was unclear in some respects and has required interpretations and implementing regulations by the Internal Revenue Service, as well as state tax authorities, and the legislation has been subject to amendments and technical corrections.
−Removed: Further amendments and technical corrections may occur, any of which could lessen or increase certain adverse impacts of the legislation.
−Removed: A significant portion of our earnings are earned by our subsidiaries outside the U.S.
−Removed: Changes to the taxation of certain foreign earnings resulting from the newly enacted U.S.
−Removed: tax legislation, along with the state tax impact of these changes and potential future cash distributions, may have an adverse effect on our effective tax rate.
−Removed: Furthermore, changes to the taxation of undistributed foreign earnings could change our future intentions regarding reinvestment of such earnings.
+Added: The European Union (“EU”) member states formally adopted the EU’s Pillar Two Directive, which was established by the Organization for Economic Cooperation and Development, and which generally provides for a 15 per cent minimum effective tax rate for multinational corporations, in all jurisdictions in which they operate.
+Added: While we do not anticipate that this will have a material impact on our tax provision or effective tax rate, we will continue to monitor the evolving tax legislation in the jurisdictions in which we operate.
As of December 31, 2023, we are currently subject to an ongoing audit with the California Franchise Tax Board for the tax years 2018 and 2019.
4 unchanged sentences
The inability to accurately determine our customers’ strategies could increase our inventory costs related to obsolescence.
−Removed: 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
−Removed: semiconductor manufacturing process.
+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.
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.
26 unchanged sentences
This evolution may result in continuing uncertainty regarding compliance matters and additional costs necessitated by ongoing revisions to our disclosure and governance practices.
−Removed: Unresolved Staff Comments.
−Removed: Not applicable.
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.