Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $136.4 million, up 8% from $126.5 million in the previous quarter and up 48% from $92.2 million in Q4 2024 [14] - GAAP gross margin for Q4 increased to approximately 57.6%, while non-GAAP gross margin was approximately 59.6% [14] - GAAP loss from operations for Q4 was 11%, and non-GAAP income from operations was 16% of net revenue [16] - Net cash flow from operating activities was approximately $10.4 million, with cash and cash equivalents totaling approximately $101.4 million at the end of Q4 [16] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q4 was approximately $47 million, broadband revenue was approximately $58 million, connectivity revenue was approximately $18 million, and industrial multi-market revenue was approximately $14 million [14] - Infrastructure revenue grew 30% for the full year and 76% in Q4 year-over-year, driven by strong growth in data center optical interconnects and wireless infrastructure [8][12] - The broadband business is expected to decline year-over-year due to the transition to DOCSIS 4.0, with a seasonal decline expected in Q1 [27][28] Market Data and Key Metrics Changes - The company expects to achieve significant revenue from the Keystone PAM4 DSP family, projecting $100-$130 million in revenue for 2026 [9] - The cloud data centers are deploying 10-gigabit XGS-PON, with the company securing its first PON data center design win [10] - The company anticipates strong growth in the Ethernet market as its 2.5 gigabit Ethernet switch and PHY portfolio expands into commercial, enterprise, and industrial applications [13] Company Strategy and Development Direction - The company is focused on high-value multi-year growth markets, including data center connectivity, wireless infrastructure, and broadband access [6][8] - Investments are being made in areas of strategic importance to build a solid foundation for sustainable growth and profitability in 2026 and beyond [19] - The company aims to strengthen its position in the optical DSP market and expand its offerings in response to evolving market demands [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained growth expectations and market momentum, entering 2026 with strong momentum across its portfolio [6] - The company expects solid growth in 2026 driven by new design wins and expanding content opportunities across its product portfolio [18] - Management highlighted the competitive advantage of power efficiency and the importance of performance over pricing in the optical market [73] Other Important Information - The company repurchased $20 million of its common stock in Q4, reflecting confidence in its growth trajectory [6][16] - The company is experiencing improved visibility and robust bookings, which are expected to drive growth in 2026 [18] Q&A Session Summary Question: Can you talk about the PAM4 DSP business and its growth? - Management indicated strong traction and design wins in the PAM4 DSP market, with expectations for continued growth in 2026 and 2027 [21][22] Question: What is the trajectory for the broadband business? - Management expects a decline in the broadband business in the first half of the year due to the transition to DOCSIS 4.0, with potential recovery in the second half [27][28] Question: What is the magnitude of opportunity within the data center segment? - Management highlighted the significant potential in the data center market, particularly with PON as a control plane layer and the increasing sophistication of compute racks [33][34] Question: Can you discuss the share repurchase authorization? - Management conveyed that the share repurchase signals confidence in the balance sheet and cash flow improvement, with revenue stability and an improving outlook [37][38] Question: How is the competitive landscape evolving for optical products? - Management expressed confidence in strengthening their position in the optical market with the rollout of new products, including the 1.6 terabit solutions [44][45] Question: What are the biggest opportunities for market share gain in 2026? - Management identified optical transceivers, storage accelerators, PON market revenues, and wireless infrastructure growth as key areas for market share gain [76]

Digital Divide & Exclusion - 1.7 million households lack broadband or mobile internet access, highlighting a significant digital divide [1] - Digital ID implementation risks creating a permanent underclass due to tech barriers and bureaucratic hurdles [1] Concerns Regarding Digital ID - The report expresses opposition to compulsory Digital ID cards [1] - "Computer says no" bureaucracy is a concern related to Digital ID implementation, suggesting potential for unfair denial of services [1]