Risk Factors Update Summary

• Revenue growth may decrease if unable to attract new large customers or sell additional products, impacting revenue.
• Compliance with evolving privacy laws in various states and globally may require ongoing efforts and investment.
• Key components from sole or limited sources increase risk of supply shortages or changes.
• Seasonality causes revenue fluctuations, with stronger growth in the first quarter followed by flat to declining growth.
• Sales declines for some products, including 10 Gigabit Ethernet modular switches, as they mature.
• Increased purchase commitments for long lead time components, remaining at elevated levels, may impact demand.
• Uncertain regulatory environment around AI technologies may result in reputational harm or liability.
• Volatile revenue and growth rates may not meet investor expectations. Historical growth rates: 33.8%, 48.6%, 27.2%, -3.9%.
• Increased costs due to global inflation and supply shortages may negatively impact margins.
• Increased risk of excess and obsolete inventory due to extended lead times and shifting product priorities.
• Potential impact on business due to geopolitical conditions like Russia-Ukraine conflict and trade restrictions.
• Revenue impacted by supply chain disruptions, manufacturing delays, and product lead time increases.