Financial Data and Key Metrics Changes - Fourth quarter revenue reached $910 million, exceeding guidance and up more than 20% year-over-year and 4% sequentially [5][12] - Full fiscal year 2025 revenue was a record $3.4 billion, representing a 19% increase from the prior year [6][18] - Non-GAAP EPS for Q4 was $2.65, a new quarterly record, while full year non-GAAP EPS hit $10.17 [6][12] Business Line Data and Key Metrics Changes - Optical Communications revenue was $689 million in Q4, up 15% year-over-year and 5% sequentially [13] - Telecom revenue reached $412 million, a 46% increase from a year ago and 1% from Q3, driven by data center interconnect (DCI) products [9][13] - DCI revenue was reported for the first time at $107 million, representing 12% of overall revenue [13] - Datacom revenue was $277 million, down 12% year-over-year but up 10% sequentially [14] - Non-optical communications revenue was $221 million, a 41% increase year-over-year [16] Market Data and Key Metrics Changes - Telecom business momentum is expected to continue into Q1, particularly with the ramp-up of a next-generation system program [9][21] - Datacom demand is anticipated to surge, although temporary component supply challenges are being faced [10][21] - Automotive revenue was $128 million, showing a slight decline but better than expected [16] Company Strategy and Development Direction - The company is evaluating options to accelerate the completion of Building 10 to meet increasing customer demand [8][19] - A significant partnership with Amazon Web Services is expected to be a meaningful revenue driver in fiscal year 2026 [6][8] - The introduction of a new revenue category for high-performance computing (HPC) is planned for Q1 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, citing strong demand across multiple growth drivers [11][38] - Temporary supply constraints are expected to impact Datacom revenue in Q1, but these issues are anticipated to be short-lived [21][56] - The company remains confident in maintaining excellent execution while continuing to grow revenue and earnings [11][21] Other Important Information - The company returned $126 million to shareholders through a buyback program, with continued repurchases expected [8][20] - The effective GAAP tax rate was 6.5% for the quarter [18] Q&A Session Summary Question: Clarification on Datacom revenue dip - Management clarified that the expected dip in Datacom revenue for Q1 does not include contributions from the new HPC segment, which will be reported separately [26][27] Question: Future hyperscaler transceiver opportunities - Management indicated that future opportunities will predominantly focus on 1.6 terabit speeds, while 800 gig opportunities will still be pursued [28][30] Question: Growth prospects for fiscal year 2026 - Management remains optimistic about growth prospects, citing strong demand trends and new customer wins [36][39] Question: Impact of component shortages on Datacom - Management acknowledged that component shortages are significant enough to impact Datacom revenue but are expected to be temporary [56][105] Question: Amazon business potential - Management believes the Amazon PCB business could represent a significant opportunity, with revenue expected to ramp in fiscal Q1 [83][84]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $910 million, exceeding guidance and up over 20% year-over-year and 4% sequentially [4][11] - Full fiscal year 2025 revenue was a record $3.4 billion, representing a 19% increase from the prior year [5][16] - Non-GAAP EPS for Q4 was $2.65, a new quarterly record, while full year non-GAAP EPS hit $10.17 [5][11] Business Line Data and Key Metrics Changes - Optical Communications revenue was $689 million, up 15% year-over-year and 5% sequentially, with telecom revenue at $412 million, a 46% increase from a year ago [12][16] - Datacom revenue was $277 million, down 12% year-over-year but up 10% sequentially, driven by demand for higher data rate products [13][19] - Non-optical communications revenue was $221 million, a 41% increase year-over-year and 3% sequentially, with automotive revenue at $128 million [14][16] Market Data and Key Metrics Changes - Telecom revenue growth was primarily driven by data center interconnect (DCI) products, which represented 12% of overall revenue at $107 million [12][19] - DCI revenue grew 45% year-over-year, indicating strong demand trends [7][68] - The automotive segment showed a slight decline but performed better than expected, while industrial laser revenue remained stable [9][14] Company Strategy and Development Direction - The company established a significant partnership with Amazon Web Services, expected to be a meaningful revenue driver in fiscal year 2026 [5][79] - Construction began on Building 10, which will add 2 million square feet of capacity, with plans to accelerate completion due to increasing customer demand [5][17] - The company is introducing a new revenue category for high-performance computing (HPC) to better capture growth in this area [20][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, citing strong customer demand and multiple growth drivers [6][19] - There are temporary component supply challenges impacting Datacom revenue, but these are expected to be resolved [9][54] - The company anticipates healthy year-over-year and sequential growth in Q1, with revenue guidance between $910 million and $950 million [21][19] Other Important Information - The company returned $126 million to shareholders through a buyback program, with continued repurchases expected in fiscal year 2026 [5][18] - The effective GAAP tax rate was 6.5%, and the company ended the year with cash and short-term investments of $934 million [16][17] Q&A Session Summary Question: Clarification on Datacom revenue dip - Management clarified that the expected dip in Datacom revenue for September does not include contributions from the new HPC segment, which will be reported separately [25][26] Question: Future hyperscaler transceiver opportunities - Management indicated that future hyperscaler opportunities would predominantly be on 1.6 terabit port speeds, while 800 gig opportunities remain [27][28] Question: Growth prospects for fiscal year 2026 - Management remains optimistic about growth prospects, citing strong demand for 1.6 terabit products and continued telecom trends [36][38] Question: Impact of component shortages on Datacom - Management acknowledged that component shortages are causing a temporary dip in Datacom revenue but expressed confidence in resolving these issues [54][55] Question: Amazon PCB business potential - Management believes the Amazon PCB business could represent a significant opportunity, with revenue expected to ramp in fiscal Q1 [78][79] Question: Visibility on 800 gig demand - Management confirmed good visibility on 800 gig demand, indicating that supply constraints are currently more of an issue than demand constraints [87][88] Question: Tariffs impact - Management stated that they have not seen significant impacts from tariffs, as shipping terms place the responsibility on customers [90][91]