Financial Data and Key Metrics Changes - In 2025, the company achieved a full-year revenue of $2.8 billion, representing a 26.4% increase from 2024 [6] - For Q4 2025, the company reported record quarterly revenue of $751.2 million, which is 1.9% higher than Q3 2025 and 20.8% higher than Q4 2024 [6][8] - The company has returned over 72% of free cash flow to stockholders through share repurchases and dividends over the past three years [8] Business Line Data and Key Metrics Changes - Non-enterprise data end markets grew by over 40% year-over-year, highlighting the strength of the diversified business model [6] - The automotive segment grew 43% year-over-year, driven by new product launches and increased customer engagement [70] Market Data and Key Metrics Changes - The company secured more than $4 billion of geographically balanced capacity and continues to add supply chain partners to support future growth [7][8] - Strong demand was noted in data centers, particularly for power solutions across AI, server, memory, optical modules, and switch applications [8] Company Strategy and Development Direction - The company focuses on innovation and solving customer challenges, with ongoing investments in new technology and market expansion [8] - The strategy includes transitioning from silicon to system-level solutions, which is expected to enhance efficiency and profitability [118][119] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's prospects, citing a strong backlog and positive ordering trends as indicators of future growth [13][21] - The outlook for enterprise data growth in 2026 was adjusted to a floor of 50%, reflecting increased confidence in market demand [17][21] Other Important Information - The quarterly dividend will increase by 28% to $2 per share [8] - The company is transitioning leadership, with Rob Dean taking over as Interim CFO following Bernie Blegen's retirement [3][4] Q&A Session Summary Question: Insights on different market segments for March quarter - Management noted strong ordering patterns and a book-to-bill ratio well above one, indicating real demand and a positive outlook for enterprise data and communications segments [13][14] Question: Expectations for enterprise data growth in 2026 - Management indicated a conservative estimate of at least 50% growth for enterprise data in 2026, supported by strong ordering patterns and design wins [17][21] Question: Impact of traditional server CPU demand on enterprise data - Management acknowledged the blurring lines between AI and CPU demand, indicating strong trends in both categories [24][26] Question: Concerns about memory prices and demand destruction - Management stated that while there are uncertainties in the PC market, they do not foresee significant constraints affecting their capacity [32][33] Question: Expectations for optical transceiver business growth - Management confirmed strong growth in optical modules and indicated that this segment would continue to grow as data center demands increase [67] Question: Drivers of automotive segment growth - Management highlighted the diversification of content opportunities in automotive, particularly in zonal and 48-volt technologies [70][75] Question: Capacity expansion plans - Management confirmed ongoing efforts to expand capacity and establish a robust supply chain management system to meet future demands [97][99] Question: Market share gains in enterprise data - Management emphasized their strategic engagement with top customers and the potential for market share growth, although specifics were not disclosed [102][104] Question: Gross margin targets and performance - Management indicated that gross margins are currently at the low end of their target range, with expectations for gradual improvement as backlog develops [108][109]