Cadence Design Systems

Threat: High dependence on sole suppliers

The company depends on sole suppliers for certain of its hardware components. Its reliance on sole suppliers could result in product delivery problems and delays and reduced control over product pricing and quality. As a result, the company may suffer disruption in the supply of certain hardware components if it is unable to purchase sufficient components on a timely basis. Any supply disruption, including delay in delivery of components by the company's suppliers or the bankruptcy or shutdown of the suppliers, could delay the production process and prevent Cadence from delivering completed emulation hardware products to customers or from supplying new evaluation units to customers, which could have affect the company's revenue and operating results.

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