What changed in this filing

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Item 1. Financial Statements

2025-02-07 compared with 2024-11-08 · 118 added, 75 removed, 435 unchanged (31% of the section changed)

3 unchanged sentences

(In thousands, except share and per share data)

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Current assets:

Cash and cash equivalents $ 133,088 $ 126,342

Accounts receivable, net of allowance for doubtful accounts of $ 523 and $ 498 at September 30, 2024 and June 30, 2024, respectively

Accounts receivable, net of allowance for doubtful accounts of $ 6,024 and $ 498 at December 31, 2024 and June 30, 2024, respectively

167,883 169,147

5 unchanged sentences

Operating lease right-of-use assets, net 42,727 47,768

Deferred tax assets— long-term 35,835 35,934

Deferred tax assets 35,985 35,934

Other long-term assets 68,128 73,571

19 unchanged sentences

500,000,000 shares authorized:

60,470,208 and 60,462,539 issued and outstanding as of September 30, 2024 and June 30, 2024, respectively

60,470,517 and 60,462,539 issued and outstanding as of December 31, 2024 and June 30, 2024, respectively

Additional paid–in capital 13,811 10,645

6 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Revenues $ 599,879 $ 464,954 $ 1,150,223 $ 928,032

20 unchanged sentences

(In thousands, except share data)

Three Months Ended September 30, 2024

Three and Six Months Ended December 31, 2024

Common Stock Additional Paid-In Capital Retained Earnings Total Stockholders’ Equity

9 unchanged sentences

60,470,208 $ 60 $ 12,018 $ 176,061 $ 188,139

Three Months Ended September 30, 2023

Net Income — — — 136,795 136,795

Restricted stock units issued, net of tax withholdings 309 — — — —

Share-based compensation expense — — 1,793 — 1,793

Dividends Paid on Common Stock ($ 0.60 per share)

— — — ( 36,282 ) ( 36,282 )

Balances at December 31, 2024

60,470,517 $ 60 $ 13,811 $ 276,574 $ 290,445

Three and Six Months Ended December 31, 2023

Common Stock Additional Paid-In Capital Retained Earnings (Deficit) Total Stockholders’ Equity (Deficit)

9 unchanged sentences

60,447,556 $ 60 $ 5,908 $ ( 69,032 ) $ ( 63,064 )

Net Income — — — 82,116 82,116

Restricted stock units issued, net of tax withholdings 731 — ( 11 ) — ( 11 )

Share-based compensation expense — — 1,506 — 1,506

Dividends Paid on Common Stock ($ 0.60 per share)

— — — ( 36,269 ) ( 36,269 )

Balances at December 31, 2023

60,448,287 $ 60 $ 7,403 $ ( 23,185 ) $ ( 15,722 )

See accompanying notes to consolidated financial statements (unaudited).

2 unchanged sentences

(In thousands) (Unaudited)

Three Months Ended September 30,

Six Months Ended December 31,

Cash Flows from Operating Activities:

8 unchanged sentences

Deferred taxes ( 543 ) 242

Provision for sales returns 184 ( 704 )

Provision for bad debts 5,527 133

Other, net ( 214 ) ( 164 )

42 unchanged sentences

These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended June 30, 2024, included in its Annual Report on Form 10-K, as filed with the SEC on August 23, 2024 (the “Annual Report”).

The results of operations for the three months ended September 30, 2024 are not necessarily indicative of the results to be expected for any future periods.

The results of operations for the three and six months ended December 31, 2024 are not necessarily indicative of the results to be expected for any future periods.

NOTE 2— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 unchanged sentences

Segment Reporting

In November 2023, the FASB issued ASU No.

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07, Segment Reporting ( Topic 280 ) (“ASU 2023-07”), which enhances the segment disclosure requirements for public entities on an annual and interim basis.

8 unchanged sentences

2023-09, Income Taxes (Topic 740) ("ASU 2023-09"), which amends the existing guidance relating to the annual disclosures for accounting for income taxes.

ASU 2023-09 requires a public business entity to disclose a tabular rate reconciliation using specified categories and providing additional information for reconciling items that exceed a quantitative threshold.

In addition, ASU 2023-09 requires the disaggregation of federal, state and foreign income taxes paid (net of

funds received), with further disaggregation required for individual jurisdictions in which the income taxes paid exceed five percent of the Company's total income taxes paid.

ASU 2023-09 requires a public business entity to disclose a tabular rate reconciliation using specified categories and providing additional information for reconciling items that exceed a

quantitative threshold.

In addition, ASU 2023-09 requires the disaggregation of federal, state and foreign income taxes paid (net of funds received), with further disaggregation required for individual jurisdictions in which the income taxes paid exceed five percent of the Company's total income taxes paid.

The provision for income taxes in the Company's statement of operations will also be required to be disaggregated by federal, state and foreign.

2 unchanged sentences

We expect this ASU to only impact our disclosures with no impact to our results of operations, cash flows, and financial condition.

Disaggregation of Expenses

In November 2024, the FASB issued ASU No.

2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses ("ASU 2024-03") which requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory;

employee compensation;

and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included.

The amendments in ASU 2024-03 will become effective for annual disclosures in the Company's fiscal year beginning July 1, 2027, with interim period disclosures required effective with the Company's fiscal year beginning July 1, 2028.

Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements.

We expect this ASU to only impact our disclosures with no impact to our results of operations, cash flows, and financial condition.

NOTE 3— REVENUES

13 unchanged sentences

The current portion of deferred revenue is included in other current liabilities and the non-current portion is included in other long-term liabilities in our consolidated balance sheets.

As of September 30, 2024 and June 30, 2024, the Company’s customer deposits were $ 1.7 million and $ 1.3 million, respectively.

As of September 30, 2024, the Company’s deferred revenue, included in other current liabilities and other long-term liabilities, was $ 21.9 million and $ 15.9 million, respectively.

As of December 31, 2024 and June 30, 2024, the Company’s customer deposits were $ 1.2 million and $ 1.3 million, respectively.

As of December 31, 2024, the Company’s deferred revenue, included in other current liabilities and other long-term liabilities, was $ 26.8 million and $ 18.8 million, respectively.

As of June 30, 2024, the Company’s deferred revenue, included in other current liabilities and other long-term liabilities, was $ 20.3 million and $ 13.4 million, respectively.

We expect the majority of our deferred revenue to convert to revenue in two years .

For the three months ended September 30, 2024 we recognized revenues amounting to $ 7.4 million from the deferred revenue balance as of June 30, 2024.

For the three months ended September 30, 2023, we recognized revenues amounting to $ 6.7 million from the deferred revenue balance as of June 30, 2023.

For the three and six months ended December 31, 2024 we recognized revenues amounting to $ 4.9 million and $ 12.3 million from the deferred revenue balance as of June 30, 2024.

For the three and six months ended December 31, 2023, we recognized revenues amounting to $ 4.3 million and $ 11.0 million from the deferred revenue balance as of June 30, 2023.

NOTE 4— EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Net income $ 136,795 $ 82,116 $ 264,783 $ 169,866

9 unchanged sentences

Inventories consisted of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Finished goods $ 476,130 $ 387,447

1 unchanged sentence

Total $ 537,344 $ 462,032

Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following (in thousands):

December 31, 2024 June 30, 2024

Prepaid income taxes $ 7,102 $ 6,766

Prepaid expenses and other assets 36,028 23,702

Other taxes 6,509 4,563

Total $ 49,639 $ 35,031

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Testing equipment $ 19,616 $ 18,964

10 unchanged sentences

Other long-term assets consisted of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Hong Kong Tax deposit (1)

5 unchanged sentences

See Note 11, "Income Taxes" to the consolidated financial statements for additional details regarding this ongoing tax audit.

(2) Accumulated amortization was $ 7.8 million and $ 7.5 million as of September 30, 2024, and June 30, 2024, respectively.

(2) Accumulated amortization was $ 8.2 million and $ 7.5 million as of December 31, 2024, and June 30, 2024, respectively.

Other Current Liabilities

Other current liabilities consisted of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Deferred revenue — short-term $ 26,763 20,332

10 unchanged sentences

Other long-term liabilities consisted of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Deferred revenue — long-term $ 18,799 $ 13,416

7 unchanged sentences

Warranty obligations, included in other current liabilities, were as follows (in thousands):

Three Months Ended September 30,

Six Months Ended December 31,

Beginning balance $ 10,825 $ 8,745

10 unchanged sentences

As of September 30, 2024 the Company had repaid all of the First Amendment Term Loan Facility and as a result there are no future payments due.

The Company's unamortized balance of debt issuance costs is $ 0.9 million as of September 30, 2024, which are amortized as interest expense over the life of the Facilities.

Amortization of debt issuance costs included in interest expense for the three months ended September 30, 2024 and September 30, 2023 were $ 1.04 million and $ 0.43 million, respectively.

The Company's unamortized balance of debt issuance costs is $ 0.7 million as of December 31, 2024, which are amortized as interest expense over the life of the Facilities.

Amortization of debt issuance costs included in interest expense for the three months ended December 31, 2024 and December 31, 2023 were $ 0.3 million and $ 0.4 million, respectively.

Amortization of debt issuance costs included in interest expense for the six months ended December 31, 2024 and December 31, 2023 were $ 1.4 million and $ 0.9 million, respectively.

The Company's debt consisted of the following (in thousands):

September 30, 2024 June 30, 2024

December 31, 2024 June 30, 2024

Initial Term Loan Facility - short term $ 25,000 $ 25,000

11 unchanged sentences

Loans under the Facilities may be prepaid at any time without penalty.

The revolving loans and term loans under the Initial Term Loan Facility bear interest, at the Company’s option, at either (i) a floating

rate per annum equal to the Base Rate (as defined below) plus a margin of between 0.50 % and 1.25 %, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter or (ii) a floating per annum rate equal to the Adjusted Term SOFR (as defined below) for a specified period, plus a margin of between 1.50 % and 2.25 %, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter.

The revolving loans and term loans under the Initial Term Loan Facility bear interest, at the Company’s option, at either (i) a floating rate per annum equal to the Base Rate (as defined below) plus a margin of between 0.50 % and 1.25 %, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter or (ii) a floating per annum rate equal to the Adjusted Term SOFR (as defined below) for a specified period, plus a margin of between 1.50 % and 2.25 %, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter.

Swingline loans bear interest at a floating rate per annum equal to the Base Rate plus a margin of be tween 0.50 % and 1.25 %, depending on the Company’s consolidated total leverage ratio as of the most recently ended fiscal quarter.

12 unchanged sentences

The Amended Credit Agreement includes customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control and certain ERISA events.

The occurrence of an event of default could result in the acceleration of the obligations under the Amended Credit Agreement.

The occurrence of an event of default could result in the acceleration

of the obligations under the Amended Credit Agreement.

The Facilities

As of September 30, 2024, $ 412.5 million was outstanding on the Initial Term Loan Facility and $ 140.0 million was outstanding on the Revolving Facility, leaving $ 560.0 million available on the Revolving Facility.

The First Amendment Term Loan Facility was fully repaid during the three months ended September 30, 2024 and there is no balance outstanding as of September 30, 2024.

As of December 31, 2024, $ 406.3 million was outstanding on the Initial Term Loan Facility.

There was no outstanding balance on the Revolving Facility as of December 31, 2024, resulting in $ 700.0 million being available on the Revolving Facility.

The First Amendment Term Loan Facility was fully repaid during the three months ended September 30, 2024 and there is no balance outstanding as of December 31, 2024.

Term Loan Facilities

During the three months ended September 30, 2024, the Company made aggregate payments of $ 129.4 million under the Term Loan Facilities, of which $ 120.6 million was repayment of principal and $ 8.8 million was payment of interest.

During the six months ended December 31, 2024, the Company made aggregate payments of $ 142.3 million under the Term Loan Facilities, of which $ 126.9 million was repayment of principal and $ 15.4 million was payment of interest.

Revolving Facility

Under the Amended Credit Agreement, during the three months ended September 30, 2024, the Company made aggregate payments of $ 38.2 million under the Revolving Facility, of which $ 35.0 million was repayment of principal and $ 3.2 million was payment of interest.

The following table summarizes the Company’s estimated debt and interest payment obligations as of September 30, 2024, for the remainder of fiscal 2025 and future fiscal years (in thousands):

Under the Amended Credit Agreement, during the six months ended December 31, 2024, the Company made aggregate payments of $ 179.9 million under the Revolving Facility, of which $ 175.0 million was repayment of principal and $ 4.9 million was payment of interest.

The following table summarizes the Company’s estimated debt and interest payment obligations as of December 31, 2024, for the remainder of fiscal 2025 and future fiscal years (in thousands):

2025 (remainder)

4 unchanged sentences

Total $ 25,277 $ 412,320 $ — $ — $ — $ — $ 437,597

(1) Interest payments are calculated based on the applicable rates and payment dates as of September 30, 2024.

(1) Interest payments are calculated based on the applicable rates and payment dates as of December 31, 2024.

Although our interest rates on our debt obligations may vary, we have assumed the most recent available interest rates for all periods presented.

2 unchanged sentences

Some of our leases include options to extend the term of such leases for a period from 12 months to 60 months, and/or have options to early terminate the lease.

As of September 30, 2024, we included such options in determining the lease terms for certain of our leases because we were reasonably certain that we would exercise the extension options.

As of December 31, 2024, we included such options in determining the lease terms for certain of our leases because we were reasonably certain that we would exercise the extension options.

Most of our leases require us to pay certain operating expenses in addition to base rent, such as taxes, insurance and maintenance costs.

The following table summarizes our lease costs for the three months ended September 30, 2024 and 2023 (in thousands):

Financial Statement Classification Three Months Ended September 30,

The following table summarizes our lease costs for the three and six months ended December 31, 2024 and 2023 (in thousands):

Financial Statement Classification Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Operating lease costs:

5 unchanged sentences

The operating lease costs in the table above include costs for long-term and short-term leases.

Total short-term costs for the three months ended September 30, 2024 and 2023 were immaterial.

Total short-term costs for the three and six months ended December 31, 2024 and 2023 were immaterial.

Variable lease costs primarily include maintenance, utilities and operating expenses that are incremental to the fixed base rent payments and are excluded from the calculation of operating lease liabilities and ROU assets.

For the three months ended September 30, 2024 and 2023, cash paid for amounts associated with the Company's operating lease liabilities were approximately $ 4.4 million and $ 4.3 million, respectively.

For the three months ended December 31, 2024 and 2023, cash paid for amounts associated with the Company's operating lease liabilities were approximately $ 4.5 million and $ 4.3 million, respectively.

For the six months ended December 31, 2024 and 2023, cash paid for amounts associated with the Company's operating lease liabilities were approximately

$ 8.9 million and $ 8.6 million, respectively.

Cash paid for amounts associated with the Company’s operating lease liabilities were classified as operating activities in the consolidated statement of cash flows.

The following table shows the Company’s undiscounted future fixed payment obligations under the Company’s recognized operating leases and a reconciliation to the operating lease liabilities as of September 30, 2024:

Remainder of Fiscal 2025

8 unchanged sentences

We subcontract with third parties to manufacture our products and supply key components.

As of September 30, 2024, we had $ 1,134.3 million of purchase commitments with these third parties.

As of December 31, 2024, we had $ 1,150.2 million of purchase commitments with these third parties.

If we cancel all or part of the orders, we may still be liable to the contract manufacturers for the cost of the components purchased by the subcontractors to manufacture our products.

There have been no significant liabilities for current or anticipated cancellations recorded as of September 30, 2024.

There have been no significant liabilities for current or anticipated cancellations recorded as of December 31, 2024.

Our consolidated financial position and results of operations could be negatively impacted if we were required to compensate these third parties.

1 unchanged sentence

Transition Tax

We have an obligation of $ 28.1 million as of September 30, 2024, related to the mandatory transition tax on accumulated foreign earnings from the 2017 Tax Cuts and Jobs Act.

We have an obligation of $ 28.1 million as of December 31, 2024, related to the mandatory transition tax on accumulated foreign earnings from the 2017 Tax Cuts and Jobs Act.

We expect to make a payment to fully settle this obligation in the first quarter of fiscal 2026.

1 unchanged sentence

Other Obligations

As of September 30, 2024, the Company has other obligations of $ 6.2 million which consisted primarily of commitments related to research and development projects.

As of December 31, 2024, the Company has other obligations of $ 6.9 million which consisted primarily of commitments related to research and development projects.

Indemnification Obligations

3 unchanged sentences

Legal Matters

The Company may be involved, from time to time, in a variety of claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters and other litigation matters relating to various claims that arise in the normal course of business.

relating to various claims that arise in the normal course of business.

The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated.

12 unchanged sentences

The Company plans to vigorously defend itself against these claims;

however, there can be

no assurance that the Company will prevail in the lawsuit.

however, there can be no assurance that the Company will prevail in the lawsuit.

The Company cannot currently estimate the possible loss or range of losses, if any, that it may experience in connection with this litigation.

9 unchanged sentences

The Company’s 2020 and 2010 Equity Incentive Plans are described in the Company’s Annual Report.

As of September 30, 2024, the Company had 4,864,798 authorized shares available for future issuance under all of its stock incentive plans.

As of December 31, 2024, the Company had 4,864,099 authorized shares available for future issuance under all of its stock incentive plans.

Share-Based Compensation

The following table shows total share-based compensation expense included in the consolidated statements of operations and comprehensive income for the three months ended September 30, 2024 and 2023 (in thousands):

Three Months Ended September 30,

The following table shows total share-based compensation expense included in the consolidated statements of operations and comprehensive income for the three and six months ended December 31, 2024 and 2023 (in thousands):

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Cost of revenues $ 57 $ 35 $ 111 $ 69

3 unchanged sentences

Stock Options

There were no options exercised under the Company’s stock incentive plans during the three months ended September 30, 2024 and 2023.

As of September 30, 2024, the Company had no unrecognized compensation costs related to stock options, and the Company did no t grant any employee stock options during the three months ended September 30, 2024, and 2023.

There were no options exercised under the Company’s stock incentive plans during the three and six months ended December 31, 2024 and 2023.

As of December 31, 2024, the Company had no unrecognized compensation costs related to stock options, and the Company did no t grant any employee stock options during the three and six months ended December 31, 2024, and 2023.

Restricted Stock Units (“RSUs”)

6 unchanged sentences

RSUs canceled ( 2,217 ) $ 186.97

Non-vested RSUs, September 30, 2024

Non-vested RSUs, December 31, 2024

106,305 $ 184.79

The intrinsic value of RSUs vested in the three months ended September 30, 2024 and 2023 was $ 1.5 million and $ 1.3 million, respectively.

The total intrinsic value of all outstanding RSUs was $ 23.5 million as of September 30, 2024.

As of September 30, 2024, there were unrecognized compensation costs related to RSUs of $ 13.7 million which the Company expects to recognize over a weighted average period of 3.1 years.

The intrinsic value of RSUs vested in both the three months ended December 31, 2024 and 2023 was $ 0.1 million.

The intrinsic value of RSUs vested in the six months ended December 31, 2024 and 2023 was $ 1.6 million and $ 1.4 million, respectively.

The total intrinsic value of all outstanding RSUs was $ 35.3 million as of December 31, 2024.

As of December 31, 2024, there were unrecognized compensation costs related to RSUs of $ 12.4 million which the Company expects to recognize over a weighted average period of 2.9 years.

NOTE 11— INCOME TAXES

The Company recorded tax provisions of $ 30.6 million for the three months ended September 30, 2024 as compared to $ 19.3 million for the three months ended September 30, 2023.

Our effective tax rate increased to 19.3 % for the three months ended September 30, 2024 as compared to 18.1 % for the three months ended September 30, 2023.

The change in effective tax rates for the three months ended September 30, 2024, as compared to the same period in the prior year, was primarily driven by changes in the mix of the income earned in various tax jurisdictions.

The Company recorded tax provisions of $ 30.6 million and $ 61.2 million for the three and six months ended December 31, 2024 as compared to $ 20.7 million and $ 40.1 million for the three and six months ended December 31, 2023.

Our effective tax rate decreased to 18.3 % for the three months ended December 31, 2024 as compared to 20.2 % for the three months ended December 31, 2023.

Our effective tax rate decreased from 19.1 % for the six months ended December 31, 2023 to 18.8 % for the six months ended December 31, 2024.

The change in effective tax rates for the three and six months ended December 31, 2024, as compared to the same periods in the prior year, was primarily driven by changes in the mix of the income earned in various tax jurisdictions as well as a U.S.

state adjustment recorded in the three months ended December 31, 2023.

The Company’s estimated fiscal year 2025 effective tax rate, before discrete items, differs from the U.S.

3 unchanged sentences

operations under the Global Intangible Low-Taxes Income ("GILTI") rules.

As of September 30, 2024, the Company had approximately $ 34.6 million of unrecognized tax benefits, substantially all of which would, if recognized, affect its tax expense.

As of December 31, 2024, the Company had approximately $ 36.1 million of unrecognized tax benefits, substantially all of which would, if recognized, affect its tax expense.

Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets.

As of September 30, 2024, the Company had $ 5.4 million accrued interest related to uncertain tax matters.

As of December 31, 2024, the Company had $ 5.9 million accrued interest related to uncertain tax matters.

The Company and one or more of its subsidiaries, file income tax returns in the United States federal jurisdiction, and various state, local, and foreign jurisdictions and is currently undergoing income tax examinations by the U.S.

3 unchanged sentences

In July 2018, the Company received a draft Notice of Proposed Adjustment (“Draft NOPA”) from the IRS proposing an adjustment to income for the fiscal 2015 and fiscal 2016 tax years based on its interpretation of certain obligations of the non-US entities under the credit facility.

This Draft NOPA was superseded by an Acknowledgement of Facts (“AOF”) issued to the Company by the IRS on January 17, 2020.

This Draft NOPA was superseded by an Acknowledgement of Facts (“AOF”) issued to the Company by the IRS on

January 17, 2020.

The IRS in its AOF continued to propose an adjustment to the Company’s income for its fiscal 2015 and fiscal 2016 tax years based on the IRS’ interpretation of certain obligations of the Company’s foreign subsidiaries under the Company’s credit facilities.

6 unchanged sentences

On January 22, 2024, the judge assigned to this case rejected both Motions for Summary Judgment.

As such, the Company is awaiting a trial date to be set which it currently expects to receive by the end of March 2025.

As such, the Company is awaiting a trial date to be set which it currently expects to receive by the end of June 2025.

The Company continues to believe that its tax position filed with the IRS with regard to this matter is more likely than not to be sustained based on the technical merits.

12 unchanged sentences

The Company expects the $ 60.7 million (net of foreign currency impact) of deposits made with IRD to be refunded upon completion of the audit.

However, there can be no assurance that this matter will be resolved in the Company’s favor and therefore it's possible that an adverse outcome of the matter could have a material effect on the Company’s

results of operations and financial condition.

The Organization for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting released Pillar Two Model Rules (“Pillar Two”) for a global minimum tax.

1 unchanged sentence

Entities operating in countries where Pillar Two has been enacted are required to estimate Pillar Two top-up tax obligations beginning in the first quarter of fiscal year 2025.

For the three months ended September 30, 2024, the Company did not have material Pillar Two top-up tax obligations impacting the Company’s estimated annual effective tax rate.

For the three and six months ended December 31, 2024, the Company did not have material Pillar Two top-up tax obligations impacting the Company’s estimated annual effective tax rate.

The Company will continue to evaluate the impact of proposed and enacted legislation as new guidance becomes available.

5 unchanged sentences

Revenues by product type are as follows (in thousands, except percentages):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

Enterprise technology $ 518,202 86 % $ 391,492 84 % $ 988,385 86 % $ 771,586 83 %

2 unchanged sentences

Revenues by geography based on customer’s ship-to destinations were as follows (in thousands, except percentages):

Three Months Ended September 30,

Three Months Ended December 31, Six Months Ended December 31,

2024 2023 2024 2023

North America (1)

4 unchanged sentences

Total revenues $ 599,879 100 % $ 464,954 100 % $ 1,150,223 100 % $ 928,032 100 %

(1) Revenue for the United States was $ 248.7 million and $ 209.2 million for the three months ended September 30, 2024 and 2023, respectively.

(1) Revenue for the United States was $ 296.1 million and $ 210.4 million for the three months ended December 31, 2024 and 2023, respectively.

Revenue for the United States was $ 544.8 million and $ 419.6 million for the six months ended December 31, 2024 and 2023, respectively.

Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated:

Percentage of Revenues Percentage of Accounts Receivable

Three months ended September 30, September 30, June 30,

Three months ended December 31, December 31, June 30,

2024 2023 2024 2024

2 unchanged sentences

NOTE 13— SUBSEQUENT EVENTS

On November 8, 2024, the Company's Board of Directors approved a quarterly cash dividend of $ 0.60 per share payable on November 25, 2024 to shareholders of record at the close of business on November 18, 2024.

On February 4, 2025, the Company's Board of Directors approved a quarterly cash dividend of $ 0.60 per share payable on February 24, 2025 to shareholders of record at the close of business on February 18, 2025.

Any future dividends will be subject to the approval of the Company’s Board of Directors.

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.

What changed 10-Q

Item 1. Financial Statements