Company: PENG
Filing Date: 2025-10-21
Form Type: 10-K
Source: 0001616533-25-000061
Chunk: 63

Company: Penguin Solutions, Inc.
Filing Date: 2025-10-21
Form: 10-K
Item: Item 1A
Chunk 63
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 to the risks generally associated with international business operations.

Sales outside of the United States accounted for 43%, 43% and 39% of our net sales in 2025, 2024 and 2023, respectively. In addition, a significant portion of our product design and manufacturing is performed at our facilities in Malaysia and China, and a significant amount of our product design activities are performed in Taiwan and India. As a result, our business is and will continue to be subject to the risks generally associated with international business operations in Malaysia, China, Taiwan, India and other foreign countries, including:

•compliance with numerous changing, and sometimes conflicting legal regimes on matters as diverse as tax, anticorruption, import/export controls and quotas, local manufacturing requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, anti-competition, data privacy, employment regulations and labor relations, and labor and human rights laws and expectations;

•changes in social, political and economic conditions, including as a result of changes of administration, political regimes or sentiment in countries in which we operate or with which we do business;

•transportation delays;

•power and other utility shutdowns or shortages;

•limitations on foreign investment;

•disruptions in or lack of adequate infrastructure;

•challenges protecting intellectual property and trade secrets;

•exchange or currency controls and fluctuations, restrictions on currency convertibility and volatility of foreign exchange markets;

•increased trade wars;

•corruption or adverse political situations;

•governmental intervention in local economies, industries, or the operations of specific companies, including us or our competitors;

•changes or instability in local labor conditions, including strikes, work stoppages, protests and changes in employment regulations, increases in wages and the conditions of collective bargaining agreements;

•compliance with travel restrictions, stay-at-home or work location conditions or other government or voluntary restrictions relating to epidemics or pandemics;

•difficulties recruiting, employing and retaining qualified personnel to manage and oversee our local operations, sales and other activities;

•difficulties in managing and overseeing employees and operations in locations far from senior management, which could result in compliance, control or other issues;

•difficulties in obtaining governmental approvals and extension of existing incentives;

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•difficulties in collecting accounts receivable;

•expropriation and nationalization of our assets in a particular jurisdiction; and

•restrictions, or increases in existing tax rates, on repatriation of cash, dividends or profits.

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