Lattice Semiconductor (LSCC) risk factors, 2025 10-K

Other

1. 01Our business could suffer as a result of tariffs and trade sanctions or similar actions
2. 02Our global business operations expose us to various legal and regulatory risks, which could impact our business, operating results and financial condition
3. 03We rely on subcontractors to supply and fabricate silicon wafers and to perform assembly and test operations for our semiconductor products. If they are unable to do so on a timely and cost-effective basis in sufficient quantities and using competitive technologies, we may incur significant costs or delays
4. 04Our margins are dependent on our achieving continued yield and quality improvements, cost reductions, and the supply and cost of wafers and materials
5. 05We may be subject to warranty claims and other costs related to our products
6. 06The intellectual property licensing component of our business strategy increases our business risk and fluctuation of our revenue and margins
7. 07Our sale of patents and intermittent significant licensing transactions can cause material fluctuations in our revenue and gross margins
8. 08Our participation in the HDMI standard is evolving, and our share of adopter fees and royalties for the HDMI standard is subject to variability
9. 09If we are unable to adequately protect our new and existing intellectual property rights globally, our financial results and our ability to compete effectively may suffer
10. 10Our business depends on the use of information technology systems. A failure of these systems, cybersecurity incidents, or cyber-fraud may cause business disruptions, compromise our intellectual property or other sensitive information, or result in losses
11. 11Failure or disruptions of our IT systems or difficulties or delays in maintaining, managing, and integrating them could adversely affect our controls and procedures and could impact our ability to perform necessary operations, which could materially adversely affect our business
12. 12We regularly test for goodwill and other impairments as required under U.S. GAAP, and we may incur future impairments
13. 13Changes to financial accounting standards may affect our results of operations and could cause us to change our business practices
14. 14Changes in effective tax rates, tax laws and our global organizational structure and operations could expose us to unanticipated tax consequences
15. 15Weakness in our internal control over financial reporting and business processes could adversely affect our business and financial results
16. 16We compete with others to attract and retain key personnel, and any loss of, or inability to attract, such personnel could adversely affect our ability to compete effectively
17. 17Our insurance may not adequately cover certain risks and, as a result, our financial condition and results may be adversely affected
18. 18We may incur indebtedness which could reduce our strategic flexibility and liquidity and may have other adverse effects on our results of operations
19. 19our ability to incur additional debt, including for working capital, acquisitions, or other needs, is more limited
20. 20Unfavorable or uncertain market conditions and risks relating to the adoption, use or application of emerging technologies, including AI, by our customers and in our business, may impact financial results and could result in reputational and financial harm and liability
21. 21Climate change and climate change-related policies and regulations may have a long-term impact on our business
22. 22The semiconductor industry routinely experiences cyclical market patterns and our products are used across different end markets. A significant downturn in the industry or in any of these end markets could cause a meaningful reduction in demand for our products and adversely affect our operating results
23. 23Our success and future revenue depend on our ability to develop and introduce new products that achieve customer and market acceptance
24. 24We compete against companies that have significantly greater resources than us and numerous other product solutions
25. 25We depend on independent contractors and third parties to provide key services in our product development and operations, and any disruption of their services, or an increase in cost of these services, could negatively impact our financial condition and results of operations
26. 26Our revenues depend on our relationships with our distributors and on a concentrated group of end customers. An adverse change in the relationships with, or performance of, our distributors, or any reduction in the use of our products by our end customers, could harm our sales and significantly decrease our revenue
27. 27The nature of our business and length of our sales cycle makes our revenue, gross margin, net income, and inventory subject to fluctuation and difficult to accurately predict
28. 28Accounting requirements related to sales through our distribution channel could result in our reporting revenue in excess of demand
29. 29Our operations are subject to the effects of inflationary pressures and recessionary concerns
30. 30Business disruptions could seriously harm our future revenue, cash flows, and financial condition and increase our costs and expenses
31. 31The trading price of our common stock has been and may continue to be subject to volatility in response to a variety of factors
32. 32Acquisitions, divestitures, strategic investments and strategic partnerships could disrupt our business and adversely affect our financial condition and operating results
33. 33Litigation and unfavorable results of legal proceedings could adversely affect our financial condition and operating results
34. 34Pandemics or other widespread public health problems could adversely affect our business, results of operations, and financial condition in a material way