Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $99.9 million, more than doubled year over year, and was in line with guidance of $94 million to $104 million [25][35] - Non-GAAP gross margin was 30.7%, above the guidance range of 29% to 30.5%, and up from 28.9% in Q4 2024 [28][29] - Non-GAAP net loss for Q1 was $0.9 million or $0.02 per share, compared to a loss of $12 million or $0.31 per share in Q1 2024 [30] Business Line Data and Key Metrics Changes - CATV segment revenue was $64.5 million, up more than six times year over year and increased 24% sequentially, driven by 1.8 GHz amplifier shipments [25][26] - Data center products revenue was $32 million, up 11% year over year but down 28% sequentially due to inventory digestion [25][26] - Telecom segment revenue was $2.9 million, up 29% year over year but down 17% sequentially [27] Market Data and Key Metrics Changes - 70.8% of data center revenue came from 100 Gbps products, with 10% from 200 Gbps and 400 Gbps products, and 10% from 40 Gbps products [26] - The top 10 customers represented 97% of revenue, with one customer in CATV contributing 64% and another in data center contributing 27% [28] Company Strategy and Development Direction - The company is focused on expanding production capacity for 800 Gbps and higher transceivers, with plans to reach approximately 40,000 transceivers per month by the end of 2025 [13][24] - The company aims to return non-GAAP gross margin to around 40% in the long term, driven by manufacturing efficiencies and improved product mix [29] - The company is committed to onshoring production to meet customer demand for domestic manufacturing, particularly in light of tariff concerns [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand in the CATV market and positive long-term growth trends in both CATV and data center markets [12][18] - The company expects a modest sequential decrease in CATV revenue in Q2 due to retooling for Motorola-style amplifiers [35] - Management remains vigilant regarding tariff impacts but does not expect significant effects in Q2 based on current information [12] Other Important Information - The company ended Q1 with $66.8 million in cash and equivalents, down from $79.1 million at the end of Q4 2024 [32] - Capital expenditures for the year are expected to be between $120 million and $150 million, with a focus on expanding production capacity [34] Q&A Session Summary Question: What is the status of channel inventory for cable TV products? - Management has good knowledge of inventory levels and is intentionally building inventory in anticipation of revenue ramp due to tariff concerns [37][38] Question: Can you clarify the retooling to Motorola-style amplifiers? - The company is shifting production to Motorola-style amplifiers and expects to have significant inventory of both products by June [52] Question: What is the long-term market outlook for 800 Gbps products? - The market for 800 Gbps is expected to grow significantly, with the company aiming to be a major supplier for Amazon and other hyperscale customers [55][76] Question: What is the margin differential between cable TV and data center transceivers? - Cable TV products currently have margins that are 300 to 600 basis points higher than data center products [81] Question: What is the qualification status for 800 Gbps products? - The company is in the final qualification phase for several customers and expects to ramp production significantly in the second half of the year [83][85]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $99.9 million, more than doubled year over year, and was in line with guidance of $94 million to $104 million [9][26] - Non-GAAP gross margin was 30.7%, above the guidance range of 29% to 30.5%, and improved from 28.9% in Q4 2024 and 18.9% in Q1 2024 [29][30] - Non-GAAP net loss for Q1 was $0.9 million or $0.02 per share, compared to a loss of $12 million or $0.31 per share in Q1 2024 [31] Business Line Data and Key Metrics Changes - CATV segment revenue was $64.5 million, up more than six times year over year and increased 24% sequentially, driven by shipments of 1.8 GHz amplifiers [10][26] - Data center products revenue was $32 million, up 11% year over year but down 28% sequentially due to inventory digestion by a major customer [10][26] - Telecom segment revenue was $2.9 million, up 29% year over year but down 17% sequentially [28] Market Data and Key Metrics Changes - 60% of revenue came from CATV products, 32% from data center products, and 3% from FTTH, telecom, and other [26] - Demand for certain 100G products surged in Q1, potentially related to tariff concerns, but supply constraints limited production [20][27] Company Strategy and Development Direction - The company is focused on expanding production capacity for 800G and higher transceivers, with plans to reach approximately 40,000 transceivers per month by mid-2026 [14][15] - The company aims to minimize tariff impacts by assessing supply chain and manufacturing operations, with a commitment to onshore production [17][35] - The company is actively engaging with customers, particularly in the hyperscale data center market, to expand revenue opportunities [19][68] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand in the CATV market and positive long-term growth trends in both CATV and data center markets [12][13] - Tariffs had no material impact on Q1 financials, and management does not expect significant impact in Q2 based on current information [13] - The company expects Q2 revenue to be between $100 million and $110 million, with a modest sequential decrease in CATV revenue and an increase in data center revenue [36] Other Important Information - The company ended Q1 with $66.8 million in cash and equivalents, down from $79.1 million at the end of Q4 2024 [32] - Total debt, excluding convertible debt, was $46.1 million, slightly up from $46 million in the previous quarter [32] - The company raised $98 million net under a new at-the-market offering to fund investments in production and R&D [34] Q&A Session Summary Question: Understanding channel inventory for cable TV products - The company has good knowledge of inventory levels through reports from MSOs and channel partners, and there is an intentional inventory buildup due to tariff situations [38][40] Question: Progress with 800G products - The company expects to ramp up production capacity to about 100,000 pieces per month by the end of the year, with a significant revenue contribution anticipated in the second half [44][45] Question: Manufacturing in China - The company is not manufacturing any products with a country of origin in China for tariff purposes, although some operations occur there [46] Question: Retooling to Motorola style amplifiers - The company is shifting production to Motorola style amplifiers, expecting to have significant inventory of both products by June [54][55] Question: Long-term market for 800G - The market for 800G is expected to grow significantly, with the company positioned to capture a substantial share, particularly with major customers like Amazon [57][76] Question: CapEx needs and funding - The company has completed a significant ATM offering and is exploring other funding options, but remains confident in achieving profitability this year [60][61]