Risk Factors Update Summary

• Added a new risk factor related to legal proceedings, potentially requiring significant payments or damages.
• The termination of the Merger Agreement resulted in a potential drawdown of up to $3.5 billion.
• Implemented additional measures to prevent EAR violations, submitted comprehensive voluntary self-disclosure to BIS on March 3, 2023.
• Disclosed the adoption of the General Data Protection Regulation (GDPR) by the European Union.
• Revenue declined from $1.1 billion in 2022 to $693.3 million in 2023, with further expected decline.
• BIS closed out its review on June 8, 2023, without monetary penalties, but issued a warning letter.
• Increased the number of shares outstanding from approximately 78 million to 81 million.
• Reduction of workforce initiated in October 2023 to align with macroeconomic changes.
• Restrictions on export of advanced semiconductors to China announced in October 2023.
• Legal proceedings and potential damages could require drawing down on existing credit lines.
• Revenue decline from $1.1 billion in 2022 to $693.3 million in 2023, impacting financial results.
• Expanded on the risks related to security vulnerabilities in products, emphasizing potential material impacts.
• Workforce reductions in March and October 2023 may lead to unintended attrition and reduced morale.
• Mentioned the settlement of a trademark dispute with Analog Devices International Unlimited Company.
• Increased competition may result in price pressure, decreased demand, and reduced profitability.
• Fluctuations in broadband net revenue, decreased by $289.7 million in 2023 compared to 2022.
• Highlighted the potential impact of inventory oversupply on gross margins and product revenue.
• Global economic conditions and geopolitical tensions continue to impact business operations and financial results.
• Increased research and development expenses expected in future years to expand product portfolio.
• Noted the volatility in managing the business due to changes in customer demand.
• Failure to obtain necessary export licenses could reduce revenue and harm business operations.