Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 30

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1A
Chunk 30
---
 to buy our products rather than long-term supply contracts. Customers on occasion cancel, reschedule, or change future product plans on short notice without incurring significant penalties. Additionally, it is possible that some customers may place orders for our products that exceed their actual demand and may cancel all or portions of their order if circumstances change. Cancellations, reductions, or delays of orders from any significant customer could have an adverse effect on our business, financial condition, and results of operations and may require us to recognize excess inventory write-off charges.              Because our expense levels to a large extent are fixed in the short term, we likely will be unable to adjust spending on a timely basis to compensate for any unexpected shortfall in sales and our operating results could be harmed in any particular quarter.

Our international operations subject our business to additional political and economic risks that could have an adverse impact on our business.

              In addition to international sales constituting a large portion of our net sales, we maintain international operations, sales, and technical support personnel.  International expansion has required, and will continue to require, significant management attention and resources.  There are risks inherent in expanding our presence into non-U.S. regions, including, but not limited to:- difficulties in staffing and managing non-U.S. operations, including compliance with local employment regulations;- failure in non-U.S. regions to adequately protect our intellectual property, patent, trademarks, copyrights, know-how, and other proprietary rights and the risk of potential theft or compromise of our intellectual property;- global health conditions and potential natural disasters, including those resulting from climate change;- power or water shortages or other operational disruptions, including those resulting from extreme weather conditions;

16

- political, social and economic instability in international regions, including wars;- international currency controls and exchange rate fluctuations;- financial accounting and reporting burdens and complexities;- vulnerability to terrorist groups targeting U.S. interests abroad; - legal uncertainty regarding liability and compliance with non-U.S. laws and regulatory requirements; and- changing U.S. regulation of foreign operations, including potential sanctions.              If we are unable to successfully manage the demands of our international operations, it may have an adverse effect on our business, financial condition, or results of operations.

Our products may be subject to average selling prices that decline over time. If we are unable to maintain or increase average selling prices for existing products, increase our volumes, introduce new or enhanced products with higher selling prices, or reduce our costs, our business and operating results could be harmed.

              Historically in the semiconductor industry, average selling prices