Skyworks Solutions (SWKS) risk factors, FY2024 10-K

Other

1. 01The risks of doing business internationally apply to all aspects of our operations
2. 02We are subject to taxation in many different countries and localities worldwide. To the extent the tax laws and regulations in these various countries and localities change, our tax liability could increase
3. 03We are subject to the risks of doing business in China
4. 04Our revenues, earnings, and other operating results may fluctuate significantly on a quarterly and annual basis. These fluctuations are typically the result of a number of factors, many of which are beyond our control
5. 05We rely on a small number of customers for a large portion of our sales
6. 06We rely on Original Equipment Manufacturers (“OEMs”) and Original Design Manufacturers (“ODMs”) to design our products into their end products
7. 07Our manufacturing processes are extremely complex, specialized, and subject to disruption
8. 08We may not be able to maintain and improve manufacturing yields that contribute positively to our gross margin and profitability
9. 09We are dependent upon third parties for the manufacture, assembly, and testing of our products
10. 10may encounter with the delivery, quality, or cost of our products could damage our customer relationships and materially and adversely affect our business, results of operations, and financial condition
11. 11We are dependent upon third parties for the supply of raw materials and components
12. 12We may not be able to effectively operate our business if we are unable to attract and retain qualified personnel
13. 13Our business could be adversely affected by the departure of existing members of our senior management team or if our senior management team is unable to effectively implement our strategy
14. 14We are subject to uncertainties involving the ordering and shipment of, and payment for, our products
15. 15We face a risk that capital needed for our business will not be available when we need it
16. 16We are exposed to risks related to the use of AI tools by us and others
17. 17We may encounter problems upgrading, enhancing, and improving our enterprise applications

Risks Related to Acquisitions

1. 18To be successful, we may need to make additional investments and acquisitions, integrate companies we acquire, and/or enter into strategic alliances
2. 19We incurred indebtedness in connection with the acquisition of the Infrastructure and Automotive business of Silicon Labs, which could reduce our flexibility to operate our business
3. 20The agreements that govern our indebtedness contain various covenants that impose restrictions that may affect our ability to operate our businesses
4. 21The semiconductor industry is highly cyclical and subject to significant downturns
5. 22The wireless communications, analog and mixed-signal semiconductor markets are characterized by significant competition
6. 23their products than we can. As a result of industry consolidation, certain competitors may be able to further exploit such benefits to strengthen their competitive position
7. 24Remaining competitive in the semiconductor industry depends upon our ability to constantly innovate
8. 25Our ability to manufacture current products, and to develop new products, depends on, among other factors, the viability and flexibility of our own internal information technology systems
9. 26Increasingly stringent environmental laws, rules, regulations, and customer expectations may require us to redesign our existing products and processes and could adversely affect our ability to cost-effectively produce our products
10. 27We may not be able to prevent, or timely detect, information technology security breaches
11. 28In order to remain competitive, we must be able to successfully protect our intellectual property rights
12. 29We are subject to the risks of licensing third-party intellectual property
13. 30We may be subject to warranty claims, product recalls, liability claims, and risks of litigation
14. 31We may be subject to claims of infringement of third-party intellectual property rights or demands that we license third-party technology
15. 32Our operating results or financial condition may be materially adversely affected if we, or one of our customers, were required to take any one or more of the foregoing actions
16. 33Our stock price has been volatile and may fluctuate in the future
17. 34Public stock markets have experienced price and trading volume volatility. This volatility has affected, and could significantly and negatively affect in the future, the market prices of securities of many technology companies, particularly the market price of our common stock
18. 35There can be no assurance that we will continue to declare cash dividends or repurchase our stock
19. 36Certain provisions in our organizational documents and Delaware law may make it difficult for someone to acquire control of us