Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $103 million, in line with guidance of $100 million to $110 million, representing more than double year-over-year growth and a 3% sequential increase [28][33] - Non-GAAP gross margin was 30.4%, consistent with guidance of 29.5% to 31%, and up from 22.5% in Q2 2024 [31][32] - Non-GAAP loss per share was $0.16, below the guidance range of a loss of $0.09 to a loss of $0.03, primarily due to higher operating expenses [10][33] Business Line Data and Key Metrics Changes - Data center product revenue was $44.8 million, up 30% year-over-year and 40% sequentially, driven by increased demand for 100G and 400G products [10][28] - CATV segment revenue was $56 million, increasing more than eight times year-over-year but down 13% sequentially due to production retooling [10][29] - CRTB revenue decreased 13% sequentially from a strong Q1, as production was retooled for new products [11] Market Data and Key Metrics Changes - 54% of total revenue came from CATV products, while 44% was from data center products, with the remaining 2% from FTTH, telecom, and other segments [28] - The majority of data center revenue (70%) was from 100G products, with 20% from 200G and 400G products [29] Company Strategy and Development Direction - The company is focused on strategic investments in R&D and SG&A to support new customer qualifications for 800G and 1.6T transceivers [8][12] - Plans to expand production capacity for 800G and higher transceivers in both U.S. and Taiwan facilities are underway, with expectations to achieve significant production increases by the end of the year [24][26] - The company aims to return non-GAAP gross margin to around 40% in the long term, with expectations for gradual improvements in the coming quarters [32][88] Management's Comments on Operating Environment and Future Outlook - Management noted strong year-over-year top-line growth and gross margin expansion, despite elevated operating expenses [8][12] - The company anticipates continued growth in data center revenue driven by demand for 100G and 400G products, with potential for 800G revenue in late Q3 or Q4 [29][37] - Management expressed confidence in the long-term demand for their products and the strategic advantage of U.S.-based production [21][36] Other Important Information - The company ended Q2 with $87.2 million in cash and equivalents, up from $66.8 million at the end of Q1 [34] - Inventory increased to $138.9 million, primarily due to raw material purchases for upcoming production [34][35] - The company received a $2 million incentive from the City of Sugar Land for onshoring manufacturing, facilitating expansion plans [27] Q&A Session Summary Question: How is the company managing customer inventories and capacity in the Cable TV segment? - The company has completed inventory build-out for both Motorola and Gainmaker products and expects modest sequential increases in the cable TV business [42][43] Question: What is the status of engagements with tier one customers for 800G transceivers? - The company has multiple engagements with tier one customers and expects to start volume manufacturing soon [45][46] Question: What is the level of vertical integration in the data center business? - The company produces both EMLs and silicon photonics in-house while also sourcing externally to meet customer requirements [52][53] Question: What are the expectations for gross margin improvements? - The company anticipates gradual improvements in gross margin, aiming for mid-30s in the near term and 40% by the end of next year [88][89] Question: What is the reason for the increase in receivables? - Receivables increased due to higher revenue and extended payment terms offered to customers to accommodate additional revenue [83][84]