Financial Data and Key Metrics Changes - First-quarter revenue reached $978 million, a 22% increase year-over-year and an 8% increase from Q4 [5][9] - Non-GAAP earnings per share (EPS) were $2.92, reflecting strong revenue flow to the bottom line [5][9] - Gross margin was 12.3%, down 30 basis points from Q4, but in line with expectations [11] Business Line Data and Key Metrics Changes - Optical communications revenue was $747 million, up 19% year-over-year and 8% from Q4 [9][10] - Telecom revenue hit a record $412 million, surging 59% year-over-year and 15% from Q4, primarily driven by data center interconnect (DCI) products [9][10] - DCI revenue was $138 million, representing a 92% increase year-over-year and a 29% increase from Q4 [10] - DataCom revenue totaled $273 million, down 17% year-over-year but only 1% down from Q4, indicating stronger-than-expected performance [10] - Non-optical communications revenue was $231 million, up 3% year-over-year, driven by high-performance computing (HPC) revenue of $15 million [10] Market Data and Key Metrics Changes - Automotive revenue was $122 million, up 19% year-over-year but down 5% from Q4 [10] - Industrial laser revenue was $40 million, up 12% year-over-year and flat sequentially [10] Company Strategy and Development Direction - The company is optimistic about continued growth in Telecom driven by DCI expansion and strong DataCom demand [8][14] - Construction of Building 10, totaling 2 million square feet, is on track for completion by the end of calendar 2026, with portions expected to be completed by mid-2026 [8][12] - The introduction of a new revenue category for HPC products is expected to significantly contribute to growth [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand trends across multiple product categories and customers [62] - The company anticipates revenue growth in Q2 to be between $1.05 billion and $1.1 billion, representing a 29% increase year-over-year at the midpoint [14] - Management acknowledged ongoing component constraints but remains optimistic about overall demand trends [6][66] Other Important Information - The company ended Q1 with cash and short-term investments of $969 million, up $35 million from Q4 [12] - Capital expenditures of $45 million were above maintenance levels due to ongoing construction of Building 10 [12] Q&A Session Summary Question: What is embedded in your December quarter outlook for DataCom? - Management refrained from commenting on individual components but emphasized the company's position to capitalize on the generational transition to photonics [17] Question: Does the HPC program take into account other customer engagements? - The HPC program is expected to grow significantly, with potential for multiple customers in the future [20][23] Question: How do the ramps of the HPC customer compare to the new Telecom customer? - The HPC product is complex and has a slower ramp-up, while the Telecom product is new and growing in the market [28] Question: What are the main drivers for the projected $100 million increase in revenue? - Key growth drivers include the HPC program, new Telecom products, and strong DCI performance [32] Question: How many customers contributed to the sequential growth in Telecom? - The growth was driven by a mix of customers across traditional Telecom and DCI, not reliant on any single customer [36] Question: What is the status of the share repurchase program? - The company has a 10b5-1 Plan in place and is focused on investing in future growth, including capital expenditures for Building 10 [44][50] Question: Is the component supply situation improving? - Management believes the supply situation will improve, although some components remain in tight supply [66]

Financial Data and Key Metrics Changes - First-quarter revenue reached $978 million, a 22% increase year-over-year and an 8% increase from Q4 [5][9] - Non-GAAP earnings per share (EPS) were $2.92, reflecting strong revenue flow to the bottom line [5][11] - Gross margin was 12.3%, down 30 basis points from Q4, but in line with expectations [11] - Operating cash flow for the quarter was $103 million, with cash and short-term investments totaling $969 million, up $35 million from Q4 [12] Business Line Data and Key Metrics Changes - Optical communications revenue was $747 million, up 19% year-over-year and 8% from Q4, with telecom revenue hitting a record $412 million, a 59% increase year-over-year and 15% from Q4 [9][10] - Data center interconnect (DCI) revenue was $138 million, a 92% increase year-over-year and 29% from Q4 [10] - DataCom revenue totaled $273 million, down 17% year-over-year but only 1% from Q4, indicating stronger-than-expected performance from key customers [10][11] - Non-optical communications revenue was $231 million, up 3% year-over-year, driven by high-performance computing (HPC) revenue of $15 million [10] Market Data and Key Metrics Changes - The company anticipates strong growth in HPC as the program ramps up, contributing significantly to future revenue [13] - Automotive revenue was $122 million, up 19% year-over-year but down 5% from Q4 [10] - Industrial laser revenue remained flat at $40 million, with a 12% increase year-over-year [10] Company Strategy and Development Direction - The company is focused on expanding its capacity with the construction of Building 10, expected to be completed by the end of calendar 2026, to support rapid growth [8][12] - Management is optimistic about continued growth in telecom driven by DCI expansion and strong DataCom demand [8][13] - The introduction of a new revenue category for HPC products is seen as a significant growth driver moving forward [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong business momentum into the second quarter, projecting revenue between $1.05 billion and $1.1 billion, representing a 29% year-over-year growth at the midpoint [13][14] - The company is optimistic about demand trends across multiple product categories and believes it is well-positioned to capitalize on growth opportunities [8][59] Other Important Information - The share repurchase program was less active this quarter, with only 970 shares repurchased, as capital is being allocated towards growth investments [12][40] - The company maintains a 10b5-1 plan for share repurchases, focusing on investing in future growth and capacity expansions [40][41] Q&A Session Summary Question: What is embedded in your December quarter outlook for DataCom? - Management refrained from commenting on individual components but emphasized the company's position to capitalize on the ongoing transition to photonics [16][17] Question: Does the HPC program take into account other customer engagements? - The HPC program is seen as a separate category with potential for growth, and management is optimistic about expanding customer engagements in this area [18][19] Question: How do the ramps of the HPC customer compare to the new telecom customer? - The ramps are different due to the nature of the products, with HPC being complex and requiring time to scale, while telecom products are newer and ramping up [24][25] Question: What are the main drivers for the projected revenue increase? - Management highlighted multiple growth drivers including HPC, new telecom products, and strong DCI performance, indicating no shortage of demand [28][29] Question: Can you elaborate on the share repurchase activity? - The share repurchase was driven by a 10b5-1 plan, with a focus on investing in growth rather than active repurchases in the open market [40][41] Question: Is the component supply situation improving? - Management indicated that while some components remain in tight supply, they expect improvements as suppliers ramp up capacity [62][63]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported gross bookings of $13.7 million, revenue of $14.1 million, and a non-GAAP gross margin of 82% [8][28] - Non-GAAP operating loss was $2.5 million, and non-GAAP net loss was $1.9 million, translating to a net loss per share of $0.07 [9][29] - The company expects Q2 2025 revenue in the range of $12 million to $16 million and full year 2025 revenue between $64 million and $70 million, reflecting a year-over-year increase of up to 17% [9][37] Business Line Data and Key Metrics Changes - TCAD bookings were down 42% year-over-year, while EDA bookings increased by 48% year-over-year, primarily due to the addition of the PPC product line [31] - Revenue from software licenses accounted for 71% of total revenue, while maintenance and services accounted for 29% [32] - The SiP product line saw an increase in revenue of 89% year-over-year [32] Market Data and Key Metrics Changes - Revenue from the Americas decreased by 34% year-over-year, while Asia Pacific was down 5% year-over-year; however, EMEA revenue increased by 8% year-over-year [33] - The company added nine new customers for AI infrastructure in Q1 2025, which accounted for 23% of quarterly bookings [16] Company Strategy and Development Direction - The company launched an acquisition strategy targeting high-growth sectors such as AI, photonics, and IoT, with recent acquisitions expected to add over $600 million in incremental serviceable addressable market (SAM) [6][18] - The introduction of annual contract value (ACV) as a new performance metric aims to provide better insight into recurring revenue and minimize the impact of quarterly order timing [8][36] - The company is focused on driving innovation through advanced R&D and maintaining a disciplined approach to managing operating expenses and cash flow [10][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term macroeconomic headwinds that resulted in the deferral of certain customer orders, representing less than 10% of annual revenue [7][26] - Despite these challenges, management remains confident in the long-term growth trajectory, supported by strong market demand and strategic expansion [7][10] - The company expects to return to 15% top-line growth once macroeconomic conditions stabilize [39] Other Important Information - The company recognized an incremental $13.1 million charge related to ongoing litigation, impacting operating expenses [26] - The total SAM expanded from $3.8 billion in 2024 to $4.4 billion in 2025 due to recent acquisitions [18] Q&A Session Summary Question: Clarification on acquisition-related revenue in guidance - Management clarified that the PPC acquisition is expected to contribute between $3 million to $5 million for the year, and TechX is expected to add another $1 million [41][43] Question: Impact of conservatism in guidance due to macro conditions - Management estimated that the delays would account for about 10% of total revenue, which has already been factored into the new guidance [44][46] Question: Timing for additional acquisitions - Management indicated that while they are focused on integrating recent acquisitions, they are open to pursuing additional deals, potentially sooner than initially expected [48][50] Question: Progress on FTCO pipeline - Management reported ongoing evaluations with existing customers in memory, advanced CMOS, and power semiconductors, with expectations for production in the second half of the year [56][58] Question: Details on order push-outs - Management noted that the order delays were primarily in Asia and affected TCAD and IP products, with no cancellations but rather delays in customer decision-making [59][60] Question: Expected operating expenses for the year - Management provided an estimate of approximately $5 million in operating expenses related to the recent acquisitions for the remainder of the year [64][66] Question: Long-term growth plans amidst macroeconomic challenges - Management reaffirmed confidence in the fundamental aspects of the business, expecting up to 17% revenue growth for the full year [70][72]