Item 8.01. Other Events.
On
The Company is supplementing the risk factors previously disclosed in its most recent periodic reports filed under the Exchange Act, with the following risk factor:
The recent coronavirus outbreak could have an adverse effect on our business.
COVID-19 has caused significant volatility in financial markets and has raised the prospect of an extended global recession. Public health problems resulting from COVID-19, and precautionary measures instituted by governments and businesses to mitigate the spread of COVID-19 in countries or regions where we, our customers or our suppliers operate or are considering operations, including travel restrictions and quarantines, could contribute to a general slowdown in the global economy, adversely impact the businesses of our customers, third-party foundries, assembly and testing service providers, logistic providers and other business partners, and disrupt our operations. Changes in our operations in response to COVID-19 or employee illnesses resulting from the pandemic may result in inefficiencies or delays, including in product development efforts and additional costs related to business continuity initiatives, that cannot be fully mitigated through succession planning, employees working remotely or teleconferencing technologies.
COVID-19 and related governmental reactions may have a material negative impact on our business, liquidity, results of operations, and stock price due to the occurrence of some or all of the following events or circumstances among others:
· We may not be able to manage our business effectively due to key employees
becoming ill, working from home inefficiently and being unable to travel to our facilities.
· We and our third-party foundries and assembly and testing service providers and
other business partners may be prevented from operating worksites due to employee illness or reluctance to appear at work and "stay-at-home" regulations.
· There may be interruptions in manufacturing.
· Industry trade shows that are important for our business and our customers may
be cancelled or have decreased attendance.
· The growth of consumer demand may slow down.
· The operations of our customers or distributors may be disrupted thereby
increasing the likelihood that our customers and distributors may attempt to delay or cancel orders, may reduce orders for our products in the future or may cease to operate as going concerns.
· Disruptions of the operations of third party foundries and assembly and testing
service providers have occurred and may continue to occur, which could impact our ability to purchase components at efficient prices and in sufficient amounts.
· The market price of our common stock may drop or remain volatile.
· We may incur significant employee health care costs under our insurance
programs.
· In addition, a prolonged economic downturn could result in reduced demand for
our products and services.
The extent of the impact of COVID-19 on our business and financial results will depend largely on future developments, including the duration of the spread of the outbreak, the impact on capital and financial markets and the related impact on the financial circumstances of our customers, distributors and retailers, all of which are highly uncertain and cannot be predicted. This situation is changing rapidly, and additional impacts may arise that we are not aware of currently.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements. All statements contained in this report other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "plan," "expect," "seek" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the "Risk Factors" section and elsewhere in this report. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. In particular, the consequences of the COVID-19 outbreak to economic conditions and the industry in general and the financial position and operating results of the Company in particular have been material, are changing rapidly, and cannot be predicted.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this report to conform these statements to actual results or to changes in our expectations, except as required by law.
As used in this report, the terms "we," "us," and "our" mean the Company and its subsidiaries unless the context indicates otherwise.
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