Qorvo (QRVO) risk factors, FY2025 10-K

Risks Related to Our Business and Industry

1. 01Our operating results fluctuate on a quarterly and annual basis
2. 02Our operating results are substantially dependent on developing new products and achieving design wins while our customers' requirements can change rapidly and product life cycles can be short
3. 03We depend on several large customers for a substantial portion of our revenue and the loss of a large customer or loss of share at one or more of these customers could have a material adverse effect on our business, financial condition and results of operations
4. 04We face risks of a loss of revenue if contracts with the U.S. government or D&A contractors are canceled or delayed or if defense spending is reduced
5. 05We depend heavily on third parties
6. 06require substantial time and expense, for us to recover any or all of our fees and deposits made as part of any supply agreement
7. 07We face risks related to sales through distributors
8. 08We face risks associated with the operation of our manufacturing facilities
9. 09Business disruptions could harm our business, lead to a decline in revenue and increase our costs
10. 10If we experience poor manufacturing yields, our operating results may suffer
11. 11We are subject to inventory risks and costs because we purchase materials and build our products based on forecasts provided by customers before receiving purchase orders for the products
12. 12We sell certain of our products based on reference designs of chipset suppliers, and our inability to effectively manage or maintain our relationships with these companies may have an adverse effect on our business
13. 13We operate in a very competitive industry and must continue to innovate
14. 14Fluctuating demand could cause us to underutilize our manufacturing facilities and have a material adverse effect on our financial performance
15. 15Unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates may adversely affect our financial condition, liquidity and results of operations
16. 16Our acquisitions and other strategic investments could fail to achieve our financial or strategic objectives, disrupt our ongoing business and adversely impact our results of operations
17. 17We may be unable to effectively execute on restructuring initiatives, which could result in total costs that are greater than expected and cause us not to achieve the expected long-term operational benefits
18. 18We must attract, retain, and motivate key employees in order to compete, and our failure to do so could harm our business and our results of operations
19. 19We are subject to warranty claims, product recalls and product liability
20. 20Changes in our effective tax rate may adversely impact our results of operations and cash flow
21. 21The enactment of international or domestic tax legislation, or changes in regulatory guidance, may adversely impact our results of operations and cash flow
22. 22Changes in the favorable tax status of our subsidiaries in Costa Rica and Singapore would have an adverse impact on our operating results
23. 23We are subject to risks associated with social, environmental, health and safety regulations, including those related to climate change

Risks Related to Our International Sales and Operations

1. 24We are subject to risks from international sales and operations
2. 25Economic regulation in China could adversely impact our business and results of operations
3. 26Changes in government trade policies, including the imposition of tariffs and export restrictions, have limited and could continue to limit our ability to sell or provide our products and other items to certain customers and suppliers, which may materially adversely affect our sales and results of operations
4. 27increased costs for our products, which may, in turn lead to decreased demand for our products, and has the potential to adversely impact our business and operations

Risks Related to Our Indebtedness

1. 28We may not be able to generate sufficient cash to service all of our debt or to fund capital expenditures and may be forced to take other actions to satisfy our debt obligations and financing requirements, which may not be successful or on terms favorable to us
2. 29The agreements and instruments governing our debt impose restrictions that may limit our operating and financial flexibility

Risks Related to Intellectual Property, Cybersecurity, Information Technology and Data Privacy

1. 30We rely on our intellectual property portfolio and may not be able to successfully protect against the use of our intellectual property by third parties
2. 31The use of AI and machine learning applications by our employees may also increase the risk of unintended or inadvertent transmission of proprietary or sensitive information
3. 32We may be subject to claims of infringement of third-party intellectual property rights
4. 33Security breaches, failed system upgrades or regular maintenance and other disruptions to our IT systems, or other misappropriation of proprietary information could expose us to liability or disrupt our ability to operate critical business functions, which would cause our business and reputation to suffer
5. 34We face internal and external data security threats. Current, departing or former employees or third parties could attempt to improperly use or access our computer systems and networks to copy, obtain or misappropriate our proprietary information or otherwise interrupt our business
6. 35We may be subject to theft, loss, or misuse of personal data by or about our employees, customers or other third parties, which could increase our expenses, damage our reputation, or result in legal or regulatory proceedings

Risks Related to Owning our Common Stock

1. 36Our certificate of incorporation and bylaws and the General Corporation Law of the State of Delaware may discourage takeovers and business combinations that our stockholders might consider to be in their best interests
2. 37Our business could be negatively impacted by stockholder activism
3. 38The price of our common stock has recently been and may in the future be volatile