Lattice Semiconductor (LSCC) risk factors, FY2025 10-K

Other

1. 01Our business could suffer as a result of tariffs, trade restrictions, export controls, sanctions or similar actions60% rewritten
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 delays23% rewritten
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. 08If 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
9. 09Our 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
10. 10Failure 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
11. 11We regularly test for goodwill and other impairments as required under U.S. GAAP, and we may incur future impairments
12. 12Changes to financial accounting standards may affect our results of operations and could cause us to change our business practices
13. 13Changes in effective tax rates, tax laws and our global organizational structure and operations could expose us to unanticipated tax consequences33% rewritten
14. 14Fluctuations in foreign currency exchange rates, and our foreign currency risk management and hedging activities, could adversely affect our results of operations New
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. 19Unfavorable 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 liability56% rewritten
20. 20Climate and climate-related policies and regulations may have a long-term impact on our business
21. 21The 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 results31% rewritten
22. 22Our success and future revenue depend on our ability to develop and introduce new products that achieve customer and market acceptance
23. 23We compete against companies that have significantly greater resources than us and numerous other product solutions45% rewritten
24. 24We 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
25. 25Our revenues depend on a highly concentrated distribution model to sell to our end customers. An adverse change in these 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 revenue32% rewritten
26. 26The 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
27. 27Accounting requirements related to sales through our distribution channel could result in our reporting revenue in excess of demand61% rewritten

General Risk Factors

1. 28We a re subject to the effects of inflationary pressures, interest rate fluctuations, and recessionary or economic slowdown risks New
2. 29Business disruptions could seriously harm our future revenue, cash flows, and financial condition and increase our costs and expenses
3. 30The trading price of our common stock has been and may continue to be subject to volatility in response to a variety of factors
4. 31Acquisitions, divestitures, strategic investments and strategic partnerships could disrupt our business and adversely affect our financial condition and operating results49% rewritten
5. 32Litigation and unfavorable results of legal proceedings could adversely affect our financial condition and operating results
6. 33Pandemics or other widespread public health problems could adversely affect our business, results of operations, and financial condition in a material way