Risk Factors Update Summary

• The company faces intense competition in networking equipment, which may adversely affect financial performance.
• The risk of confidentiality breaches due to GenAI usage could materially adversely affect our business, financial condition, and operating results.
• Amazon Web Services and Microsoft Azure may provide enterprise customers with competitive data center services, impacting market share.
• Military actions and geopolitical tensions could lead to significant market disruptions and increased cyberattacks, adversely affecting operations.
• New tax rules may impact our tax liabilities, potentially leading to significant changes in operations.
• Significant disruptions in supply chains could lead to increased costs and delays in product deliveries.
• The company recorded significant charges due to excess inventory during fiscal 2024, affecting cash flows and financial condition.
• Rising interest rates may increase debt expenses, adversely impacting financial results and cash flows.
• Civil unrest, pandemics, and acts of terrorism could disrupt demand, negatively affecting our business and financial situation.
• The regulatory framework for AI is rapidly evolving, potentially impacting the company's ability to develop AI technologies.