Products gross margin and gross margin percentage increased during the third quarter and first nine months of 2026 primarily due to a different mix of products and tariff refunds, partially offset by higher costs, including memory

The Company has applied for a refund of tariffs paid, following the processes established by U.S. Customs and Border Protection, and has recognized any refunds received as a reduction of products cost of sales

Actions, such as price increases, that have been and may in the future be taken by the Company may not effectively mitigate these negative impacts

rising component cost pressures

“The Company is experiencing a period of supply constraints and increasing costs for components driven by factors such as industry supply-demand imbalances for components, including advanced semiconductors, storage (NAND) and memory (DRAM).”