11 added · 20 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
Aerospace & Defense : inertial guided missiles, mid-range smart munitions systems, weapons systems on armed personnel carriers, unmanned vehicles, security and access control, camera systems, door access control, airport screening scanning devices, and light-weighting vehicle technologies. 6 Table of Contents OTHER FACTORS IMPACTING OUR OPERATIONS Sales and Marketing We design and develop our products within our Technology Centers and can manufacture these products and solutions in various facilities located in the United States, Canada, Mexico, Europe and Asia-Pacific.
Additionally, cybersecurity incidents related to export control technology information of our Aerospace & Defense customers could subject us to additional reporting requirements, could disrupt our ability to sell products to those customers and could subject us to additional costs, penalties, and fines all of which may be material to our operating results. We rely on suppliers to provide equipment, components and services, which creates certain risks and uncertainties that may adversely affect our business. Our business requires that we buy equipment, components and services from third parties.
These updates include new and increased tariffs, or potential tariffs, on a wide range of products and goods imported to the U.S., and certain countries have responded with reciprocal tariffs and/or trade restrictions.
We have manufacturing operations in Mexico, China, and Europe, amongst other locations globally throughout the world, and source certain components from locations that may be impacted by these policy changes.
Changing order patterns, supply chain disruptions, and the evolution of our business required us to carry larger inventories in recent years to meet the needs of our customers.
The increase in our backlog year over year reflects increases within certain target markets, most significantly in Industrial and Aerospace and Defense.
Strong results in the Industrial market was driven by increased demand in power quality solutions supporting data center infrastructure.
Our competitors include Ametek, Inc., Parker Hannifin Corporation, Regal Rexnord, and other smaller competitors.
This is partially offset by decreases in Vehicle due to reduced demand in power sports and truck applications.
The U.S government has proposed and implemented certain updates to existing foreign trade policies.
There are varying degrees of impact on our customers, and thus our business around the world.
No longer disclosed
Included in backlog as of December 31, 2024 is $7,353 from the acquisition completed in 2024.
Changing order patterns, supply chain disruptions, and the evolution of our business required us to carry larger inventories in 2024 and 2023 to meet the needs of our customers, especially as they return to a new normal after the disruptions caused by the COVID-19 pandemic.
The Company regularly undertakes audits and evaluations (including to the National Institute of Standards and Technology (NIST) SP 800-171 standards) and enhances its security framework based upon the results of those audits and evaluations.
There are varying degrees of impact on our customers, and thus our business around the world, with Europe experiencing the greatest amount of stress in 2023 and 2024.
Sales to one customer (Customer A) were 10% of total sales in 2023 and to another customer (Customer B) were 12% of total sales in 2023.
Aerospace & Defense : inertial guided missiles, mid-range smart munitions systems, weapons systems on armed personnel carriers, unmanned vehicles, security and access control, camera systems, door access control, airport screening scanning devices, and light-weighting vehicle technologies.
OTHER FACTORS IMPACTING OUR OPERATIONS Sales and Marketing We design and develop our products within our Technology Centers and can manufacture these products and solutions in various facilities located in the United States, Canada, Mexico, Europe and Asia-Pacific.
Additionally, cybersecurity incidents related to export control technology information of our Aerospace & Defense customers could subject us to additional reporting requirements, could disrupt our ability to sell products to those customers and could subject us to additional costs, penalties, and fines all of which may be material to our operating results. The Board of Directors and Audit Committee are responsible for information security oversight and the Audit Committee is comprised entirely of independent directors.
As part of their oversight, senior leadership meets with the Audit Committee at least annually to discuss information security and cybersecurity matters. Over the last three years, the Company has experienced no known information security breaches.
For new 11 Table of Contents associates, and on an annual basis therefore the Company requires associates to take security awareness training and has an on-going phishing recognition training and testing programs. We rely on suppliers to provide equipment, components and services, which creates certain risks and uncertainties that may adversely affect our business. Our business requires that we buy equipment, components and services from third parties.
Decreases in revenues compared to the prior year period are largely impacted by elevated shipments during the prior year period as supply chains normalized, combined with elevated inventory levels and slowing demand at our customers .
Sierramotion: On September 22, 2023, the Company acquired 100% of the interest in Sierramotion Inc.