New Pacific Metals (3N7A) Risk Analysis
Risk Overview Q4, 2015
Source: the company's latest filing for the period ended Jan 02, 2016, filed Mar 02, 2016
Risk Change Over Time
No filing history is available.
Risk Highlights Q4, 2015
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 28
- Accounting & Financial Operations - Risk 1Our financial results are difficult to predict, and if we fail to meet our financial guidance or the expectations of investors, potential investors and/or securities analysts, the market price of our common stock will likely decline significantly.
Our financial results in any given quarter have fluctuated and will likely continue to fluctuate. These fluctuations are typically unpredictable and can result from numerous factors including: - fluctuations in our customers' capital spending, industry cyclicality (particularly in the semiconductor equipment industry), market seasonality (particularly in the scientific research market), levels of government funding available to our customers (particularly in the scientific research, defense and life and health sciences markets) and other economic conditions within the markets we serve;- demand for our products and the products sold by our customers;- the level of orders within a given quarter and preceding quarters;- the timing and level of cancellations and delays of orders in backlog for our products;- the timing of product shipments and revenue recognition within a given quarter;- variations in the mix of products we sell;- changes in our pricing practices or in the pricing practices of our competitors or suppliers;- our timing in introducing new products;- market acceptance of any new or enhanced versions of our products;- timing of new product introductions by our competitors;- timing and level of scrap and warranty expenses;- the availability, quality and cost of components and raw materials we use to manufacture our products;- our ability to manage capacity in response to customer demand;- changes in our effective tax rates;- changes in our capital structure, including cash, marketable securities and debt balances, and changes in interest rates;- changes in bad debt expense based on the collectability of our accounts receivable;- timing, type, and size of acquisitions and divestitures, and related expenses and charges;- fluctuations in currency exchange rates, particularly the euro and Japanese yen as compared with the U.S. dollar;- gains and losses related to derivative instruments;- our expense levels;- impairment of goodwill and amortization of intangible assets; and - fees, expenses and settlement costs or judgments against us relating to litigation. We are continually evaluating and adjusting our business, including changing prices, increasing or decreasing spending, or adding or eliminating products in response to actions by competitors or in an effort to pursue new market opportunities. These actions may also adversely affect our business and operating results and may cause our results in a given period to be lower than our results in previous periods. Further, we often recognize a substantial portion of our sales in the last month of each fiscal quarter. Thus, variations in timing of sales, particularly for our higher-priced, higher-margin products, can cause significant fluctuations in our quarterly sales, gross margin and profitability. Orders expected to ship in one period could shift to another period due to changes in the timing of our customers' purchase decisions, rescheduled delivery dates requested by our customers, manufacturing capacity constraints or logistics delays. Our operating results for a particular quarter or year may be adversely affected if our customers, particularly our largest customers, cancel or reschedule orders, or if we cannot fill orders in time due to capacity constraints or unexpected delays in manufacturing, testing, shipping or product acceptance. Also, we base our manufacturing plans on our forecasted product mix for the quarter. If the actual product mix varies significantly from our forecast, we may not be able to fill some orders during that quarter, which would result in delays in the shipment of our products and could shift sales to a subsequent period. In addition, our expenses for any given quarter are typically based on expected sales, and if sales are below expectations in any given quarter, the adverse impact of the shortfall on our operating results may be magnified by our limited ability to adjust spending quickly to compensate for the shortfall. Due to these and other factors, we believe that quarter-to-quarter and year-to-year comparisons of our results of operations, or any other similar period-to-period comparisons, may not be reliable indicators of our future performance. In any period, our results may be below the expectations of securities analysts and investors, which would likely cause the trading price of our common stock to decline significantly.
- Accounting & Financial Operations - Risk 2We are required to evaluate our internal control over financial reporting each year, and any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price.
Pursuant to rules and regulations promulgated by the SEC under Section 404 of the Sarbanes-Oxley Act of 2002, we are required to furnish a report by our management each year on our internal control over financial reporting. This report contains, among other matters, an assessment of the effectiveness of our internal control over financial reporting as of the end of our fiscal year, including a statement as to whether or not our internal control over financial reporting is effective. This assessment must include disclosure of any material weaknesses in our internal control over financial reporting identified by management. This report must also contain a statement that our auditors have issued a report on such internal controls. Management's assessment of internal control over financial reporting requires management to make subjective judgments, some of which are in areas that may be open to interpretation. As such, our auditors may not agree with our management's assessments. If we are unable to assert each year that our internal control over financial reporting is effective, or if our auditors are unable to attest that our internal control over financial reporting is effective, we could lose investor confidence in the accuracy and completeness of our financial reports, and we may be unable to file such reports in a timely manner, which would have an adverse effect on our stock price. In addition, if any unidentified material weaknesses were to result in fraudulent activity and/or a material misstatement or omission in our financial statements, we could suffer losses and be subject to civil and criminal penalties and litigation, all of which could have a material adverse effect on our business, financial condition and results of operations.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.