Marvell Technology (MRVL) risk factors, FY2026 10-K

Other

1. 01SUMMARY OF FACTORS THAT MAY AFFECT OUR FUTURE RESULTS
2. 02Unfavorable or uncertain conditions in the Data Center and Communications markets may cause fluctuations in our rate of revenue growth or financial results21% rewritten
3. 03Given their dependence on semiconductor products to operate their data centers and to ensure continuity of supply and reduce direct costs, some large customers may begin developing and making their own semiconductor solutions which could result in a loss of business for Marvell
4. 04Advances in artificial intelligence could disrupt our business model and materially adversely affect our results of operations and financial conditionNew
5. 05We face risks related to recessions, inflation, stagflation and other macroeconomic conditions
6. 06We operate in intensely competitive markets. Our failure to compete effectively would harm our results of operations
7. 07In addition, many of our competitors operate and maintain their own fabrication facilities and have longer operating histories, greater name recognition, larger customer bases, and greater sales, marketing and distribution resources than we do
8. 08WE ARE VULNERABLE TO PRODUCT DEVELOPMENT AND MANUFACTURING-RELATED RISKS
9. 09No Guarantee of Capacity or Supply56% rewritten
10. 10We have in the past including in the first few quarters of fiscal 2023, and may in the future, experienced a number of industry-wide supply constraints. These supply challenges have in the past, and may in the future, limited our ability to fully satisfy demand for some of our productsNew
11. 11Uncertain Yields and Quality
12. 12We may experience increased actual and opportunity costs as a result of our transition to smaller geometry process technologies
13. 13We rely on our customers to design our products into their systems, and the nature of the design process requires us to incur expenses prior to customer commitments to use our products or recognizing revenues associated with those expenses which may adversely affect our financial results
14. 14If we are unable to develop and introduce new and enhanced products that achieve market acceptance in a timely and cost-effective manner, our results of operations and competitive position will be harmed21% rewritten
15. 15Some of our customers require our products and our third-party manufacturing partners to undergo a lengthy and expensive qualification process which does not assure product sales. If we are unsuccessful or delayed in qualifying these products with a customer, our business and operating results would suffer
16. 16Costs related to defective products could have a material adverse effect on us
17. 17We rely on third-party distributors and manufacturers’ representatives and the failure of these distributors and manufacturers’ representatives to perform as expected could reduce our future sales
18. 18Adverse changes in the political, regulatory and economic policies of governments in connection with trade with China and Chinese customers have reduced the demand for our products and damaged our business32% rewritten
19. 19Changes to U.S. or foreign tax, trade policy, government incentives, tariff and import/export regulations may have a material adverse effect on our business, financial condition and results of operations48% rewritten
20. 20We also have substantial operations outside of the United States. We anticipate that our manufacturing, assembly, testing, packaging and sales outside of the United States will continue to account for a substantial portion of our operations and revenue in future periods
21. 21Recent, current and potential future acquisitions, strategic investments, divestitures, mergers or joint ventures may subject us to significant risks, any of which could harm our business35% rewritten
22. 22If we fail to complete a transaction, we may nonetheless have incurred significant expenses in connection with such transaction. Failure to complete a pending transaction may result in negative publicity and a negative perception of us among the investment community35% rewritten
23. 23We may not be able to scale our business quickly enough to meet our customers’ needs or in an efficient manner, which could harm our operating results
24. 24Cybersecurity risks could adversely affect our business and disrupt our operations23% rewritten
25. 25Our indebtedness could adversely affect our financial condition and our ability to raise additional capital to fund our operations and limit our ability to react to changes in the economy or our industryNew
26. 26The 2025 Credit Agreement and the Notes Indentures impose restrictions on our business
27. 27We may be unable to generate the cash flow to service our debt obligations
28. 28We may, under certain circumstances, be required to repurchase the Notes at the option of the holder
29. 29Changes in existing taxation benefits, tax rules or tax practices may adversely affect our financial results39% rewritten
30. 30We are exposed to potential impairment charges on certain assets
31. 31We are subject to the risks of owning real property
32. 32We may be unable to protect our intellectual property, which would negatively affect our ability to compete
33. 33We must comply with a variety of existing and future laws and regulations that could impose substantial costs on us and may adversely affect our business57% rewritten
34. 34Expectations, requirements and attention to sustainability matters may have an adverse effect on our business, financial condition and results of operations, and damage our brand and reputationNew
35. 35We depend on highly skilled employees to support our business operations. If we are unable to retain and motivate our current employees or attract additional qualified employees, our ability to develop and successfully market our products could be harmed24% rewritten
36. 36In addition, as a result of our past and any future acquisitions and related integration activities, our current and prospective employees may experience uncertainty about their futures that may impair our ability to retain, recruit or motivate key management, engineering, technical and other employees38% rewritten
37. 37There can be no assurance that we will continue to declare cash dividends or effect stock repurchases in any particular amount or at all, and statutory requirements may require us to defer payment of declared dividends or suspend stock repurchases39% rewritten
38. 38Our indemnification obligations and limitations of our director and officer liability insurance may have a material adverse effect on our financial condition, results of operations and cash flows
39. 39As we carry only limited insurance coverage, any incurred liability resulting from uncovered claims could adversely affect our financial condition and results of operations
40. 40We face risks related to global pandemics, which may significantly disrupt and adversely impact our manufacturing, research and development, operations, sales and financial results
41. 41Adverse developments affecting the financial services industry, including events or risks involving liquidity, defaults or non-performance by financial institutions, could have a material adverse effect on our business, financial condition or results of operations
42. 42We are exposed to risks related to our receivables factoring arrangementsNew
43. 43If any of our non-U.S. based subsidiaries were classified as a passive foreign investment company, there would be adverse tax consequences