Risk Factors Update Summary

• Our backlog decreased significantly, impacting revenue projections; we expect it to reduce from $1.1 billion in fiscal 2023 to $820.4 million in fiscal 2024.
• Customer orders began to moderate, with order levels below revenue during fiscal 2023 and the first half of fiscal 2024, affecting financial forecasts.
• Our network systems may be targeted for data security incidents, impacting our customers' data security.
• Our ten largest customers contributed 57.9% of revenue for fiscal 2024, up from 53.7% in fiscal 2023, indicating increased revenue concentration risk.
• The U.S. administration plans to impose an additional 10% tariff on imports from China, affecting costs.
• Increased regulations on climate change may lead to additional costs and operational restrictions for our business.
• We recorded charges for excess and obsolete inventory of $77.3 million in fiscal 2024, significantly impacting our financial results and cash flow.
• The minimum tax directive, Pillar Two, will impact our effective tax rate starting in fiscal 2025.
• Changes in U.S. immigration policy could impair hiring processes, adversely affecting our ability to attract skilled personnel for critical roles.
• The Federal Trade Commission opened an investigation into potentially anticompetitive practices in the cloud market.