Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $261.2 million, with adjusted EPS at $0.94 per diluted share. For the full year, FY25 revenue reached $967 million, representing a more than 32% increase year over year, and EPS was $3.47, up more than 35% year over year [4][24][29] - Free cash flow generated was $193 million, with cash and short-term investments totaling approximately $786 million at year-end [4][32] - The adjusted operating margin for FY25 grew by 140 basis points to 25.4%, and cash flow from operations increased by 45% to $235.4 million [24][32] Business Line Data and Key Metrics Changes - Q4 revenue performance by end market included industrial and defense at $115.6 million, telecom at $66 million, and data center at $79.6 million. Industrial and defense revenues were up approximately 7% sequentially, and data center revenues were up approximately 5% sequentially [5][25] - The company launched over 200 new products in FY25, which contributed to revenue growth and improved gross margins [6][7] Market Data and Key Metrics Changes - U.S. domestic customers represented approximately 43% of Q4 revenue, with full fiscal year 2025 U.S.-based revenue at approximately 44% [25] - The defense market saw over 50% year-over-year revenue growth, driven by high-power GaN components [11][12] Company Strategy and Development Direction - The company aims to achieve $1 billion in annual revenues, with a focus on technology and product differentiation, particularly in high-frequency and high-power IC products [6][7] - Plans to open two additional IC design centers to enhance R&D capabilities and expand market share [8] - The strategic agreement with HRL to license the T3L process is expected to enhance MACOM's capabilities in high-frequency applications and capture significant market share [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth in FY2026, driven by data center demand and improvements in telecom and defense sectors [34][41] - The company anticipates continued growth in the LEO satellite market, with potential revenues in the hundreds of millions of dollars [42][43] - Management highlighted strong October bookings as a positive indicator for the start of FY2026 [41] Other Important Information - The company expects Q1 FY2026 revenue to be in the range of $265-$273 million, with adjusted gross margin anticipated between $56.5-$58.5 million [33][34] - Capital expenditures for FY2026 are estimated to be $50-$55 million, focusing on upgrading production equipment and expanding capacity [32] Q&A Session Summary Question: Insights on telecom business outlook - Management identified 5G growth and satellite communications as key drivers for the telecom business in FY2026 [36] Question: Demand trends between 100G and 200G solutions - The 100G business is stable, while significant growth is expected in the 200G segment, particularly for 1.6T applications [37] Question: Update on HRL IP license agreement - The HRL technology complements existing processes and is expected to enhance capabilities in high-frequency SATCOM applications [39] Question: Factors driving growth in FY2026 - Growth is primarily driven by the rollout of 1.6T and 800G platforms, along with a recovery in telecom and strength in defense [41] Question: Size of the LEO satellite market - The LEO business is expected to grow significantly over the next 12-18 months, potentially reaching hundreds of millions in revenue [42][43] Question: Competitive landscape post-merger of competitors - Management does not anticipate significant changes in the competitive landscape due to the merger, as it does not directly impact MACOM [57]