Arista Networks, Inc.

Company Overview

Business Model: Arista Networks, Inc. is an industry leader in data-driven, client-to-cloud networking solutions for large Artificial Intelligence ("AI"), data center, campus, and routing environments. The Company's platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. At its core is Arista's Extensible Operating System ("EOS®"), a modernized publish-subscribe state-sharing networking operating system. Arista EOS, combined with network applications and Ethernet switching and routing platforms utilizing merchant silicon, provides a competitive portfolio with improved price/performance and time to market. Revenue is generated from sales of products (switching and routing platforms, network applications) and services (Post-Contract Customer Support, or "PCS," contracts).

Market Position: Arista Networks, Inc. holds a leadership position in overall data center Ethernet switch ports and revenue, and continues to lead the market in higher speed Ethernet port shipments of 100G and above, according to market research in 2024. The Company differentiates itself through uncompromising reliability, advanced open and standards-based technology, and intelligent automation. Its strategic commitment to using merchant silicon is a key competitive differentiator, offering superior price/performance and faster time to market for next-generation platforms.

Recent Strategic Developments:

• AI Focus: Arista Networks, Inc. is expanding its leadership in AI Ethernet switching, providing network switching products for robust interconnects linking GPUs, compute, and storage for AI workloads. It also offers Arista Autonomous Virtual Assist ("AVA™") for AI-assisted network operations, security, and observability. The Company is a founding member of the Ultra Ethernet Consortium ("UEC").
• Campus and Routing Expansion: The Company has expanded its campus portfolio with modular and fixed form factor Campus spine switches, Power-over-Ethernet ("PoE") leaf switches, and Wi-Fi access points managed through CloudVision®. It has also added Enterprise WAN products and embedded Network Detection and Response ("NDR") security sensors into campus switches.
• Zero Trust Security: Arista Networks, Inc. offers a full suite of security solutions built on EOS® and CloudVision™, including network access control ("CloudVision AGNI") and AI-driven Network Detection and Response ("Arista NDR"), designed to align with the Cybersecurity and Infrastructure Security Agency’s Zero Trust Maturity Model.
• Product Introductions: Fiscal year 2024 saw new product introductions and expanded use cases, particularly in the AI Ethernet market, including the Arista Etherlink AI portfolio of 800G switches, Arista 7800R AI Spine, 7060 AI Leaf, and the Distributed Etherlink Switch ("DES").
• Acquisitions: In 2022, the Company completed the acquisitions of Untangle Holdings and Pluribus Networks.

Geographic Footprint: Arista Networks, Inc. operates globally, with its corporate headquarters in Santa Clara, California. It leases office spaces for data centers, operations, sales personnel, and research and development in locations throughout the U.S. and various international locations, including Ireland, Canada, India, and Australia.

• Americas: 81.8% of total revenue in 2024.
• Europe, Middle East and Africa: 10.2% of total revenue in 2024.
• Asia-Pacific: 8.0% of total revenue in 2024.

Financial Performance

Revenue Analysis

Profitability Metrics (2024):

• Gross Margin: 64.1%
• Operating Margin: 42.0%
• Net Margin: 40.7%

Investment in Growth (2024):

• R&D Expenditure: $996.7 million (14.2% of revenue)
• Capital Expenditures: $32.0 million
• Strategic Investments: The Company holds equity investments in privately-held companies with a carrying amount of $81.3 million as of December 31, 2024.

Business Segment Analysis

(Arista Networks, Inc. operates as one reportable segment, but provides revenue breakdown by product and customer categories.)

Core (Data Center, Cloud and AI Networking)

Financial Performance:

• Revenue: Approximately 65% of total revenue in 2024.
• Key Growth Drivers: Expansion of generative AI computing and distributed applications, digital transformation, demand for high-bandwidth, scalable, lossless networks, and the adoption of cloud computing technologies. The Company's strategic commitment to merchant silicon provides improved price/performance and early market access for next-generation platforms.

Product Portfolio:

• Major product lines and services within segment: Data-driven, high-speed, cloud and data center Ethernet switches (fixed and modular form factors), Arista Etherlink AI portfolio of 800G switches, Arista 7800R AI Spine, 7060 AI Leaf, Distributed Etherlink Switch ("DES").
• New product launches or major updates: 800G switches, AI Analyzer, optimal load balancing solutions for AI applications, deep packet buffer architectures, virtual output queuing, non-disruptive upgrades, embedded optics, next-generation optics, reversible cooling, and overall system power efficiency.

Market Dynamics:

• Competitive positioning within segment: Leadership position in overall data center Ethernet switch ports and 100G and above Ethernet port shipments. Addresses customer requirements for performance, scale, and programmability.
• Key customer types and market trends: Cloud and AI Titans (48% of total revenue in 2024), other internet and service providers, including specialty and AI Neoclouds. Focus on digital transformation and AI expansion.

Cognitive Adjacencies (Campus and Routing)

Financial Performance:

• Revenue: Approximately 18% of total revenue in 2024.
• Key Growth Drivers: Customer demand for consistent quality and operational efficiency across the entire enterprise network, redefined "campus" boundaries due to hybrid work, proliferation of IoT devices, and increased security and availability needs.

Product Portfolio:

• Major product lines and services within segment: Cognitive Campus switching products (Arista 7300 Series spine/Spline™, 720/750 Series POE switches, Cognitive Wi-Fi Access Points), Cloud-Grade Routing platforms (7280R3 Universal Leaf, 7500R3, 7800R3 Universal Spine), WAN Routing (Arista AWE-7200R Series).
• New product launches or major updates: Incremental Enterprise WAN products, embedded NDR security sensors into campus switches.

Market Dynamics:

• Competitive positioning within segment: Offers consistent, unified management across the campus edge for wired and wireless networks, integrated security, and proactive network assurance, all powered by EOS and CloudVision.
• Key customer types and market trends: Enterprise customers (35% of total revenue in 2024), addressing challenges of siloed campus networks and growing security needs.

Cognitive Network (Software and Services)

Financial Performance:

• Revenue: Approximately 17% of total revenue in 2024.
• Key Growth Drivers: Demand for simplified end-to-end network operations, real-time network telemetry, automation, and AI for networking, and high levels of customer support.

Product Portfolio:

• Major product lines and services within segment: CloudVision (multi-domain management platform, leverages NetDL architecture), Arista A-Care Services (global customer support, multiple service options, spare parts in over 200 locations), DANZ Monitoring Fabric ("DMF") (next-generation network packet broker), Arista Guardian Network Identity ("AGNI") (AI-driven network identity service), Arista's AI-driven Network Detection and Response ("NDR") (AI-driven Security Platform, powered by AVA™), CloudEOS™ (multi-cloud and cloud-native networking solution).
• New product launches or major updates: CloudVision AGNI, Arista NDR, CloudEOS for Amazon AWS, Microsoft Azure, and Google public clouds.

Market Dynamics:

• Competitive positioning within segment: Offers a unified operating system (EOS) and common management plane (CloudVision) for integrated security solutions.
• Key customer types and market trends: Enterprise, Cloud and AI Titans, and Providers, seeking operational efficiency, enhanced visibility, and robust security solutions.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $423.6 million (5.5 million shares) in 2024.
• Dividend Payments: The Company has never declared nor paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future.
• Future Capital Return Commitments: In May 2024, the board of directors authorized a new $1.2 billion stock repurchase program, expiring in May 2027. As of December 31, 2024, approximately $921.0 million remained authorized under this program.

Balance Sheet Position (as of December 31, 2024):

• Cash and Equivalents: $8,303.5 million (comprising $2,762.4 million in cash and cash equivalents and $5,541.1 million in marketable securities).
• Total Debt: No explicit "Total Debt" line item disclosed on the balance sheet.
• Net Cash Position: $8,303.5 million (assuming no material debt).

Cash Flow Generation (2024):

• Operating Cash Flow: $3,708.2 million
• Free Cash Flow: $3,676.2 million (Operating Cash Flow of $3,708.2 million - Capital Expenditures of $32.0 million)

Operational Excellence

Production & Service Model: The Company subcontracts the manufacturing of the majority of its products to various contract manufacturers. Products are manufactured internationally. After manufacturing and testing, products are shipped to direct fulfillment facilities in the United States, the Netherlands, and Singapore for further configuration and distribution. The Company maintains a global team of support engineers for customer support offerings (Arista A-Care Services) and stocks spare parts in over 200 locations worldwide through third-party logistics suppliers.

Supply Chain Architecture: Key Suppliers & Partners:

• Contract Manufacturers: Jabil Inc., Sanmina Corporation, Flex Ltd., Foxconn Hon Hai. These partners manufacture products in Malaysia, Vietnam, Mexico, and other countries.
• Merchant Silicon Vendor: Broadcom (predominant vendor for switching chips).
• Logistics Suppliers: Third-party logistics suppliers for global spare parts stocking and distribution.

Facility Network:

• Manufacturing: Subcontracted to partners in Malaysia, Vietnam, Mexico, and other countries.
• Research & Development: R&D centers and office spaces in the U.S., Ireland, Canada, India, and Australia.
• Distribution: Four direct fulfillment facilities worldwide (United States, Netherlands, Singapore) for finished goods inventory, final product configuration, and shipping.
• Corporate Headquarters: Santa Clara, California (approximately 180,000 square feet). A new building for office, lab, and data center space is under construction in Santa Clara, California, with an estimated capital expenditure of $235.0 million to $260.0 million through December 31, 2026.

Operational Metrics: All manufacturing locations are ISO-9001 certified. The Company invests in test automation, ensuring high test pass rates, and collaborates with its support group to address technical defects.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Utilizes a direct sales force supported by systems engineers for pre-sales technical support and solutions engineering. Sales teams are organized by geographical territory, major direct end-customer accounts, or specific vertical markets.
• Channel Partners: Sells in partnership with distributors, value-added resellers, systems integrators, and Original Equipment Manufacturer ("OEM") partners. The Arista Partner Program facilitates channel coordination and extends market reach.
• Technology Partners: Sells in conjunction with various technology partners.

Customer Portfolio: Enterprise Customers:

• Customer Categories: Cloud and AI Titans, Enterprise, and Providers. Enterprise customers span a wide spectrum of industries including financial services, government agencies, media and entertainment, healthcare, oil and gas, education, manufacturing, and industrial.
• Strategic Partnerships: Meta Platforms and Microsoft are significant Cloud and AI Titan end customers.
• Customer Concentration:
  • Microsoft: 20% of total revenue in 2024 (18% in 2023, 16% in 2022).
  • Meta Platforms: 15% of total revenue in 2024 (21% in 2023, 26% in 2022).
  • Two resellers represented 26% and 24% of total accounts receivable as of December 31, 2024.

Geographic Revenue Distribution (2024):

• Americas: 81.8% of total revenue ($5,729.0 million), with $5,663.0 million from the U.S.
• Europe, Middle East and Africa: 10.2% of total revenue ($713.2 million)
• Asia-Pacific: 8.0% of total revenue ($560.9 million)

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The networking market is highly competitive and characterized by rapidly changing technology, evolving industry standards, frequent new product introductions, and industry consolidation. The market for AI networking is expanding, with new competitive technologies emerging. The market demand for networking solutions has increased due to larger, more sophisticated networks, virtualization, and cloud computing.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Data Center & Campus Networking: Cisco, Dell/EMC, Extreme Networks, Hewlett Packard Enterprise, Huawei, Juniper Networks, Nvidia, and white box networking vendors utilizing open-source operating systems.
• AI Networking: InfiniBand ("IB") and NV Link interconnects (often sold with Nvidia GPUs).
• Network Monitoring & Security:
  • NDR Market: Cisco, Darktrace, ExtraHop.
  • NPB Market: Cisco, Gigamon, Keysight, Netscout, and other network monitoring software providers.

Emerging Competitive Threats: New market entrants in AI networking, increased adoption of "white box" networking products based on open-source network operating systems, and disaggregated hardware/software approaches.

Competitive Response Strategy: Arista Networks, Inc. plans to continue investing heavily in research and development to expand EOS capabilities, introduce new products and features (especially in AI Ethernet, campus switching, Wi-Fi networking, and network security), and enhance its technology leadership. The Company also aims to expand its sales force, marketing activities, and relationships with channel, technology, and system-level partners.

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: The networking market is rapidly evolving, particularly with AI networks. Failure to anticipate technological shifts, develop products that meet market demand, or gain market acceptance for new offerings (e.g., AI Ethernet products against InfiniBand) could harm the business.
• Customer Concentration: A limited number of large customers account for a substantial portion of revenue (e.g., Microsoft 20%, Meta Platforms 15% in 2024). Changes in their capital expenditures, demand patterns, or vendor selection could cause significant revenue fluctuations and impact gross margins due to pricing discounts.
• Competition: Intense competition from larger, well-established companies (e.g., Cisco, Hewlett Packard Enterprise, Juniper Networks, Nvidia), industry consolidation, and new market entrants (e.g., white box vendors, open-source solutions) can lead to pricing pressure, reduced profit margins, and loss of market share.
• New Product/Market Expansion: Substantial investments in new products (e.g., 800 GbE, AI-focused Ethernet) and expansion into adjacent markets (campus, Wi-Fi, AI networking, cloud/enterprise routing, network security, SD-WAN) are subject to risks of delayed acceptance, increased customer trials with acceptance periods, and failure to gain market acceptance.
• Economic Conditions: Adverse domestic or global economic conditions, geopolitical pressures, inflation, and reduced IT spending can lead to longer sales cycles, reduced demand, lower prices, and higher default rates.

Operational & Execution Risks

• Supply Chain Vulnerabilities:
  • Supplier Dependency: Reliance on a limited number of suppliers, including sole-source providers (e.g., Broadcom for switching chips), for key components. This increases the risk of shortages, extended lead times, price increases, or supply interruptions.
  • Manufacturing Dependency: Dependence on third-party contract manufacturers (Jabil Inc., Sanmina Corporation, Flex Ltd., Foxconn Hon Hai) reduces control over manufacturing, quality, costs, and timing, exposing the Company to delays, disruptions, and quality control problems.
  • Purchase Commitments: Significant non-cancellable, non-returnable purchase commitments for components and products ($3.1 billion as of December 31, 2024) create risk of excess or obsolete inventory if demand forecasts are inaccurate, leading to write-downs and lower gross margins.
• Product Quality & Interoperability: Products may contain undetected defects or errors, especially when new. Failure to ensure interoperability with third-party operating systems, software, and hardware could lead to loss of market share.

Financial & Regulatory Risks

• Gross Margin Volatility: Gross margins are expected to vary due to pricing pressure, mix of sales to large customers (lower pricing), manufacturing costs (supply chain, merchant silicon, expedite fees, tariffs), and excess/obsolete inventory charges.
• Sales Price Decreases: Sales prices may decline due to competition, discounts, product mix changes, or macroeconomic factors, reducing gross profits.
• Long Sales Cycles: Sales cycles, especially for large customers and new markets (enterprise, campus, AI), can be long and unpredictable, making revenue forecasting difficult and potentially leading to significant fluctuations in results.
• Cybersecurity Breaches: Defects or vulnerabilities in products, failure to detect security incidents, or breaches of internal cybersecurity systems could damage reputation, lead to significant liabilities, regulatory actions, and financial losses.
• Regulatory & Compliance: Subject to various federal, state, local, and foreign governmental regulations (employment, safety, product safety, environmental, consumer protection, privacy, data protection, telecommunications, anti-bribery, import/export controls, sanctions, tax). Non-compliance can result in fines, penalties, and reputational harm.
• Tax Strategy: Changes in income taxes, effective tax rate, tax laws (e.g., TCJA Section 174, OECD Pillar Two), or adverse outcomes from tax examinations could affect financial results.

Geopolitical & External Risks

• Geopolitical Exposure: Operations and supply chain are exposed to risks from geopolitical conditions (e.g., Russia-Ukraine, Israel-Hamas conflicts, Taiwan-China tensions), which can lead to supply chain disruptions, increased costs, and reduced demand.
• Trade Relations: Escalating international trade measures (e.g., U.S. tariffs on goods from China, Mexico, Vietnam) and export controls (e.g., on semiconductors to China) can increase costs, disrupt supply chains, and limit market access. The Uyghur Forced Labor Prevention Act ("UFLPA") also poses import risks.
• Catastrophic Events: Earthquakes, fire, power outages, floods, health epidemics (e.g., COVID-19), and man-made problems (terrorism, war) can disrupt business operations, manufacturing, and supply chains.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• EOS Adaptation: Adapting EOS for new and existing silicon architectures, particularly to support the unique requirements of AI workloads.
• EOS Functionality: Adding or enhancing EOS control plane and management plane functionality.
• CloudVision Expansion: Expanding the CloudVision management stack with enhanced automation, provisioning, monitoring, and security capabilities.
• Related Services: Building related services such as NDR and Network Access Control ("NAC").
• Security & Quality: Improving the security and scalability of software development infrastructure and software supply chain, and maintaining high product quality through test automation.

Intellectual Property Portfolio:

• Patent Strategy: Relies on patent, trademark, copyright laws, and trade secret protection. Files U.S. and foreign patent applications.
• Trademarks: Arista, EOS, and CloudVision are core trademarks.
• Licensing Programs: Licenses software from third parties, including open-source software.

Technology Partnerships:

• Strategic Alliances: Continued collaboration with key merchant silicon vendors, such as Broadcom, is critical for product roadmap development, ensuring silicon includes improved features, and leveraging their investments for cost-effective solutions.

Leadership & Governance

Executive Leadership Team

Board Composition: 50% of the board of directors are women or underrepresented minorities.

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 4,412 full-time employees worldwide as of December 31, 2024.
• Geographic Distribution: Employees located globally.
• Skill Mix: Highly skilled team of software and hardware engineers with expertise in wired and wireless networking technologies, network protocols, network security, operating systems, programming languages, compilers, databases, hardware system design, Field-Programmable Gate Array programming, high-speed signal integrity, and other related technologies. None of the employees are represented by unions.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Recruitment from historically black colleges and universities, women’s colleges, and Hispanic/Latinx and African-American professional societies and job fairs.
• Employee Value Proposition: Competitive and comprehensive benefit packages, employee stock purchase plan, healthcare and retirement benefits, paid time off, family leave, flexible time away, family planning benefits, backup resources for childcare and elder care, and employee assistance programs. Employees participate in stock and bonus incentive plans.
• Retention Metrics: Regularly works with a third party to identify and resolve any pay gaps.

Diversity & Development:

• Diversity Metrics: Recognized by Forbes and Time Magazine as a best company to work for. Recognized by Comparably for culture, happiness, leadership, career growth, and compensation. 50% of the board of directors are women or underrepresented minorities.
• Development Programs: Regular periodic training on Code of Ethics and Business Conduct, information security, data privacy, intellectual property, insider trading, and anticorruption. Arista Certified Engineering ("ACE") certification program, mentorship programs (Women@Arista), E-Learning portal (management and AI training), Arista PREP Training Program, technical summits, industry conferences.
• Culture & Engagement: Hybrid work model for designated roles, regular employee surveys, active community employee engagement program, wellness weeks.

Health and Safety: Committed to protecting employee health and safety, with an injury and illness prevention program.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: The Company is subject to environmental laws and regulations governing the management and disposal of hazardous materials and wastes, including the hazardous material content of its products and laws relating to the collection, recycling, and disposal of electrical and electronic equipment. Climate change may result in greater frequency and severity of natural disasters, impacting the business.

Supply Chain Sustainability:

• Responsible Sourcing: The Company has increased its supply chain diligence to comply with import restrictions such as the Uyghur Forced Labor Prevention Act ("UFLPA"), which creates a rebuttable presumption against goods from the Xinjiang Uyghur Autonomous Region of China.

Social Impact Initiatives:

• Community Investment: Supports an active community employee engagement program, providing opportunities for employees to volunteer and engage in community service.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Typically experiences lower sequential quarter-over-quarter revenue growth in the first fiscal quarter, often followed by stronger sequential revenue growth in ensuing quarters. This seasonality is attributed to customer procurement, budgeting, and deployment cycles.
• Economic Sensitivity: Business performance depends on overall demand for information technology and network infrastructure. Weak economic conditions, geopolitical pressures, and reduced IT spending can adversely affect demand.
• Industry Cycles: The effects of recent supply chain disruptions and rapid growth may have reduced the impact of seasonal or cyclical factors. If growth rates slow, seasonal or cyclical variations may become more pronounced.

Planning & Forecasting: The Company and its contract manufacturers procure components and build products based on demand forecasts, which are derived from historical trends, sales and marketing analysis, and overall market conditions. Extended lead times for components have required longer demand forecast horizons and increased purchase commitments.

Regulatory Environment & Compliance

Regulatory Framework: The Company is subject to regulation by various federal, state, local, and foreign governmental agencies, covering areas such as employment, labor, workplace safety, product safety, environmental laws, consumer protection, privacy, data protection, telecommunications, anti-bribery (e.g., U.S. Foreign Corrupt Practices Act), import/export controls, sanctions, conflict minerals, federal securities laws, and tax laws. Emerging AI and machine learning technologies may also become subject to new regulations.

Industry-Specific Regulations:

• Data Privacy: Subject to stringent regulations like the EU's General Data Protection Regulation ("GDPR") and the UK's similar legislation, as well as U.S. state laws such as the California Consumer Privacy Act ("CCPA") and California Privacy Rights Act ("CPRA"), and India's Digital Personal Data Protection Act 2023. Compliance requires ongoing efforts and investment.
• International Compliance: Regulatory requirements can be more stringent in certain jurisdictions, and obtaining regulatory approvals or certificates of compliance is necessary for product distribution in some countries.

Trade & Export Controls:

• Export Restrictions: Products are subject to various export controls, including those related to encryption technology. Compliance with export control laws, customs regulations, and economic sanctions is critical.
• Sanctions Compliance: Subject to economic sanctions and export control restrictions against countries like Russia, Belarus, and certain regions of Ukraine. Deteriorating relations between Taiwan and China could lead to additional sanctions or export controls.
• Tariffs: Products manufactured internationally (Malaysia, Vietnam, Mexico, China) are subject to U.S. and international tariffs. The U.S. government has imposed tariffs on imports from China and has scheduled tariffs on products of Mexican origin. China has implemented retaliatory measures and export controls on critical metals.
• U.S. Government Controls: Subject to U.S. government restrictions on the use of certain Chinese-origin components or systems in items sold to the U.S. government or in internal networks of government contractors. Also subject to expanded controls restricting the ability to send certain semiconductor-related products and technology to China.

Legal Proceedings:

• WSOU Investments LLC: A lawsuit filed in November 2020 alleging infringement of three patents related to wireless and switching products. One patent was dismissed. The case is stayed pending resolution of an inter partes review of another patent, which ruled challenged claims unpatentable in May 2023. The Company intends to vigorously defend against the claims.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 12.6% in 2024 (13.8% in 2023, 14.5% in 2022). The decrease in 2024 was due to favorable changes in state taxes and tax benefits from stock-based compensation.
• Geographic Tax Planning: U.S. tax law requires U.S. tax on foreign earnings (Global Intangible Low Taxed Income, or "GILTI"). The Company uses the deferred method of accounting for GILTI. Approximately $1.4 billion of cash, cash equivalents, and marketable securities were held outside the U.S. in foreign subsidiaries as of December 31, 2024.
• Tax Reform Impact: The Tax Cuts and Jobs Act ("TCJA") Section 174, effective January 1, 2022, requires capitalization and amortization of research and development expenditures, resulting in an incremental cash tax impact of approximately $210.2 million in 2024. The Organization for Economic Cooperation and Development ("OECD") Pillar Two global minimum tax initiative is being evaluated for future impact.

Insurance & Risk Transfer

Risk Management Framework: The Company has a cybersecurity risk management program aligned with its overall enterprise risk management programs. This includes an information security management systems policy, risk assessments, a dedicated security team, internal audit teams and external service providers, cybersecurity awareness training, and a vetting process for third-party service providers. The Audit Committee oversees cybersecurity risks, receiving quarterly reports from the Vice President and Chief Information Security Officer ("CISO").

Insurance Coverage: The Company maintains cyber liability insurance coverage.