Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 16

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1A
Chunk 16
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, and declining average selling prices

Strategic & Industry Risks

•Risks related to joint development or other custom product collaborations, including the development of products for specific system architectures

•Risks related to the timely development, production, and acceptance of new and advanced technologies while complying with environmental regulations

•Risks related to increasing complexity of our products and the potential for security vulnerabilities or other product defects and difficulties in transitioning to advanced manufacturing process technologies

•Risks related to changes in the system architecture of our customers' end products

•Risks related to our ability to protect our intellectual property rights

Financial Risks

•Risks related to exposure to tax liabilities and changes in tax laws

•Risks related to fluctuations in inventory, including risks related to our customers’ ability to cancel/reschedule orders on short notice

•Risks related to fluctuations in operating results, stock price, and foreign currency exposures

•Risks related to debt obligations, including under our Second Amended Credit Agreement

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Legal & General Risks

•Risks related to intellectual property claims and litigation and export control regulations, including the potential for illicit diversion of products

•Risks related to certain provisions of Delaware law and our Certificate of Incorporation and Bylaws

•Risks related to corporate social responsibility initiatives and ESG matters

•Risks related to owning real property

Business and Operational Risks

We depend on a limited number of customers and distributors for a substantial portion of our sales, and the loss of, or a significant reduction in orders from, or pricing on products sold to, any key customer or distributor could significantly reduce our sales and our profitability.

While we generate sales from a broad base of customers worldwide, the loss of any of our key customers, or a significant reduction in sales or selling prices to any key customer, or reductions in selling prices made to retain key customer relationships, would significantly reduce our revenue, margins, and earnings and adversely affect our business.  For the twelve-month periods ending March 29, 2025, March 30, 2024, and March 25, 2023, our ten largest end customers represented approximately 96 percent, 95 percent and 92 percent of our net sales, respectively.  For the twelve-month periods ending March 29, 2025, March 30, 2024, and March 25, 2023, we had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 89 percent