Aviat Networks (AVNW) risk factors, FY2026 10-K

Other

1. 01Due to the challenges from our lengthy sales cycle, our recognition of revenue from our selling efforts may be substantially delayed, our ability to forecast our future revenue may be more limited and our revenue may fluctuate significantly from quarter to quarter
2. 02Our success will depend on new products introduced to the marketplace in a timely manner, successfully completing product transitioning and achieving customer acceptance
3. 03We rely on various third-party service partners to help complement our global operations, and failure to adequately manage these relationships could adversely impact our financial results and relationships with customers
4. 04If we do not effectively manage our relationships with third-party service partners, or if they fail to perform these services in the manner or time required, our financial results and relationships with our customers could be adversely affected
5. 05We must respond to rapid technological change and comply with evolving industry standards and requirements for our products to be successful32% rewritten
6. 06Our development and use of AI and ML technologies, and their use by our competitors, customers, and threat actors, present operational, competitive, legal and reputational risksNew
7. 07Our average sales prices may decline in the future
8. 08Credit and commercial risks and exposures could increase if the financial condition of our customers declines
9. 09Our restructuring actions could harm our relationships with our employees and impact our ability to recruit new employeesNew
10. 10Our business could be adversely affected if we are unable to attract and retain key personnel47% rewritten
11. 11We face strong competition for maintaining and improving our position in the market, which can adversely affect our revenue growth and operating results32% rewritten
12. 12Our ability to sell our products and compete successfully is highly dependent on the quality of our customer service and support, and our failure to offer high quality service and support could have a material adverse effect on our sales and results of operations
13. 13Product performance problems, including undetected errors in our hardware or software, or deployment delays could harm our business and reputation
14. 14Because we outsource the manufacturing of certain components of our products, we may also be subject to product performance problems as a result of the acts or omissions of third parties, and we may not have adequate compensating remedies against such third parties
15. 15If we fail to accurately forecast our manufacturing requirements or customer demand, we could incur additional costs, which would adversely affect our business and results of operations28% rewritten
16. 16We depend on sole or limited sources and geographies for some key components and failure to receive timely delivery of any of these components could result in deferred or lost sales
17. 17Because a significant amount of our revenue may come from a limited number of customers, the termination of any of these customer relationships may adversely affect our business
18. 18We continually evaluate strategic transaction opportunities which could involve merger, divestiture, sale and/or acquisition activities that could disrupt our operations and harm our operating results, and may require management to devote significant attention and resources to achieve strategic transactions
19. 19Due to the volume of our international sales, we may be susceptible to a number of political, economic, financial and geographic risks that could harm our business
20. 20While these factors and the impacts of these factors are difficult to predict, any one or more of them could adversely affect our business, financial condition and results of operations in the future
21. 21There are inherent limitations on the effectiveness of our controls and if we fail to implement and maintain effective internal control over financial reporting, it could adversely impact our business, results of operations, investor confidence and our stock price56% rewritten
22. 22We may not be able to obtain capital when desired on favorable terms, if at all, or without dilution to our stockholders
23. 23If we raise additional funds through the issuance of equity or convertible debt securities, the ownership of our existing stockholders could be significantly diluted, and these newly-issued securities may have rights, preferences or privileges senior to those of existing stockholders
24. 24Further, with respect to our credit facility discussed under “Liquidity, Capital Resources and Financial Strategies” in Item 7 of this Annual Report on Form 10-K, our ability to access the funds available under our credit facility could be materially adversely affected23% rewritten
25. 25Our ability to use net operating loss carryforwards to offset future taxable income for U.S. federal income tax purposes and other tax benefits may be limited36% rewritten
26. 26Geopolitical tensions, armed conflicts, changes in trade policies, and disruptions to global supply chains may adversely affect our business, financial condition, and results of operationsNew
27. 27If we are unable to adequately protect our intellectual property rights, we may be deprived of legal recourse against those who misappropriate our intellectual property31% rewritten
28. 28If sufficient radio frequency spectrum is not allocated for use by our products, or we fail to obtain regulatory approval for our products, our ability to market our products may be restricted
29. 29Our business is subject to changing regulation of corporate governance, public disclosure and anti-bribery measures, which have resulted in increased costs and may continue to result in additional costs or potential liabilities in the future34% rewritten
30. 30Our products are used in critical communications networks which may subject us to significant liability claims
31. 31We may be subject to litigation regarding our intellectual property. This litigation could be costly to defend and resolve and could prevent us from using or selling the challenged technology
32. 32We are subject to complex federal, state, local and international laws and regulations related to protection of the environment that could materially and adversely affect the cost, manner or feasibility of conducting our operations, as well as those of our suppliers and contract manufacturers30% rewritten
33. 33Increased attention to ESG matters, conservation measures and climate change issues has contributed to an evolving state of regulation, which could impact our results of operations, financial or competitive position and may adversely impact our business42% rewritten
34. 34Anti-takeover provisions of Delaware law, our Tax Benefit Preservation Plan, and provisions in our Amended and Restated Certificate of Incorporation, as amended, and Amended and Restated Bylaws could make a third-party acquisition of us difficult
35. 35Natural disasters or other catastrophic events such as terrorism and war could have an adverse effect on our business
36. 36System security risks, data protection breaches, and cyberattacks could compromise our proprietary information, disrupt our internal operations and harm public perception of our products, which could cause our business and reputation to suffer and adversely affect our stock price22% rewritten
37. 37Negative reports could harm our reputation, cause us to incur significant costs or impact our operations, and could materially adversely affect our business and stock priceNew