Financial Data and Key Metrics Changes - For Q3 2026, net sales were $267 million, up 4% sequentially and up 13% year-over-year, driven by data center and LoRa portfolio momentum [4] - Adjusted operating margins grew 180 basis points sequentially and 230 basis points year-over-year [4] - Adjusted diluted earnings per share were $0.48, up 17% sequentially and 85% year-over-year [25] - Adjusted EBITDA was $62.7 million, up 11% sequentially and 23% year-over-year, with an adjusted EBITDA margin of 23.5% [22] Business Line Data and Key Metrics Changes - Infrastructure net sales were $77.9 million, up 6% sequentially and 18% year-over-year, supported by data center business [7] - Data center net sales reached a record $56.2 million, up 8% sequentially and 30% year-over-year [8] - High-end consumer net sales for Q3 were $41.9 million, up 2% sequentially and 5% year-over-year [12] - Industrial net sales were $147.2 million, up 3% sequentially and 12% year-over-year, driven by strong LoRa performance [13] Market Data and Key Metrics Changes - The data center business is expected to see continued growth, with projections for a 10% sequential increase in Q4 [26] - The high-end consumer market is anticipated to decrease by about 3% sequentially in Q4, partially offset by market share gains [26] - The industrial end market is expected to remain flat, with growth in IoT systems and connectivity [26] Company Strategy and Development Direction - The company is focused on capturing growth opportunities in core assets and optimizing its portfolio [19] - The acquisition of the Force Sensing business is expected to enhance the sensor portfolio and create cross-selling opportunities [5][13] - The company aims to lead in ultra-power-efficient solutions across high-bandwidth data center networking and IoT applications [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the data center business, supported by strong demand for low-power solutions [9][10] - The company is well-positioned to drive LoRa adoption with new capabilities and features [15] - Management highlighted the importance of maintaining a strong balance sheet and reducing interest expenses to support strategic investments [24] Other Important Information - The company completed a $402.5 million convertible note offering, significantly reducing annual interest expenses [23][24] - Operating cash flow for Q3 was $47.5 million, up 60% year-over-year, indicating strong cash generation [25] - The company is actively engaged in divesting non-core assets, with multiple indications of interest from potential acquirers [6][52] Q&A Session Summary Question: What is the outlook for CopperEdge with the lead CSP? - Management indicated that CopperEdge is designed into three programs, with a substantial ramp expected throughout fiscal year 2026 [30][31] Question: How does LPO fit into the market? - Management anticipates a meaningful contribution from LPO in Q4, with strong design wins expected [34] Question: What is the expected gross margin for Q4? - The semiconductor gross margin is projected to be 60.5%, with lower margins anticipated in the IoT systems and connectivity segment [57] Question: What has changed regarding the divestiture of non-core assets? - Management noted increased interest from potential acquirers due to improved geopolitical conditions and business opportunities [52] Question: What is the status of the ACC opportunity? - Management confirmed that there are no reliability issues with ACC, and the ramp is expected to begin in Q4 [60]