Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of $126.5 million, representing a 16% sequential increase and a 56% year-over-year growth [5][13] - GAAP gross margin for Q3 was approximately 56%, while non-GAAP gross margin was around 59.1% [13] - Non-GAAP income from operations in Q3 was 12% of net revenue, with GAAP losses from operations at 33% [14] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q3 was approximately $40 million, broadband revenue was about $58 million, connectivity revenue was around $19 million, and industrial multimarket revenue was approximately $9 million [13] - Broadband connectivity saw an 80% year-over-year growth, while connectivity solutions grew by 50% year-over-year [10] Market Data and Key Metrics Changes - The infrastructure end market experienced a 75% year-over-year revenue increase in Q3 [5] - The company anticipates strong revenue acceleration in 2026, particularly in high-speed data center optical interconnects, with projected revenues of $60 million to $70 million [6][7] Company Strategy and Development Direction - The company is focusing on strategic investments in high-value end markets such as high-speed data center optical interconnects, wireless infrastructure, and storage accelerators to drive growth [11][12] - The management expressed optimism about the design win activities across their product portfolio, particularly in infrastructure and wireless sectors [21][25] Management's Comments on Operating Environment and Future Outlook - Management noted that while broadband growth may moderate, they expect continued growth in infrastructure and industrial multimarket segments [16][22] - The company is cautious yet optimistic about the growth potential in 2026, driven by design wins and customer activity [21][22] Other Important Information - The company exited 2025 with approximately $113 million in cash and cash equivalents, ahead of their 2025 plan [15] - The day sales outstanding improved to approximately 39 days, with inventory turns increasing to 1.8 times [15] Q&A Session Summary Question: Can you provide context on the expected growth in 2026 compared to 2025? - Management indicated that while 2025 is expected to show 30% year-over-year growth, they are optimistic about exceeding that in 2026 due to strong design win activities [19][20] Question: What is the outlook for the wireless infrastructure segment? - Management noted that telecom operators are beginning to spend on infrastructure again, leading to strong traction for their Sierra product line [24][25] Question: How do you see the optical side of the business trending for next year? - Management expressed that while they are seeing strong traction, competition remains a factor, and growth will depend on the timing of customer ramp-ups [31][32] Question: What are the expectations for broadband connectivity in the upcoming quarters? - Management expects moderation in broadband growth but does not foresee an overall decline, with PON expected to grow strongly [42][88] Question: How does the company view the potential for the industrial multimarket business? - Management stated that they are investing in sustainable growth within the industrial multimarket, focusing on edge and cloud data center opportunities [102][104]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was approximately $109 million, reflecting a 13% sequential increase and an 18% year-over-year growth from $92 million in Q2 2024 [5][15] - Non-GAAP gross margin was reported at 59.1%, while GAAP gross margin was approximately 56% [15] - Operating expenses were reduced significantly, with GAAP operating expenses at $86.1 million and non-GAAP operating expenses at $56.6 million [15][16] - The company returned to profitability on a non-GAAP basis and generated positive free cash flow [6][12] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q2 was approximately $35 million, broadband revenue was about $48 million, connectivity revenue was around $21 million, and industrial multimarket revenue was approximately $6 million [15] - The company anticipates revenue from high-speed data center optical interconnects to be between $60 million and $70 million for the year, primarily driven by the 800 gigabit PAM4 DSP product family [6][7] Market Data and Key Metrics Changes - The company noted strong customer traction in high-speed data center optical interconnects, PON broadband access, Wi-Fi, and Ethernet markets [6][10] - Increased carrier CapEx spending is expected to drive demand in wireless infrastructure for 2025 and 2026 [8][9] - Major North American carriers are ramping up their FiberPON access build-outs, leading to increased demand for fiber PON, cable DOCSIS, and Wi-Fi solutions [10][11] Company Strategy and Development Direction - The company is focused on high-value categories such as high-speed interconnects, multi-gigabit PON access, Wi-Fi connectivity, Ethernet storage accelerators, and wireless infrastructure [12][13] - Investments in strategic high-growth areas are expected to generate exciting business opportunities and accelerate revenues in 2026 [18] - The company aims to establish itself as a strategic partner for hyperscale data centers beyond just interconnect solutions [95] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025 and 2026, citing robust customer order rates and backlog [6][12] - The company is optimistic about the recovery in core markets and anticipates sustained growth in various segments [18] - Management highlighted the importance of cost reduction investments to maintain and improve gross margins moving forward [40] Other Important Information - The company expects Q3 2025 revenue to be between $115 million and $135 million, with all end markets projected to grow sequentially [17] - GAAP operating expenses for Q3 are expected to be in the range of $84 million to $90 million, while non-GAAP operating expenses are projected to be between $55 million and $61 million [17] Q&A Session Summary Question: Q3 outlook and segment performance - Management indicated that infrastructure is expected to perform well, with broadband and connectivity also showing recovery [20][21] Question: Broadband growth drivers - Management noted that the growth in broadband is driven by CapEx deployment and market share gains, rather than just inventory replenishment [22][23] Question: Design wins for Rushmore and Keystone - Management confirmed strong design wins with major module makers and emphasized the importance of Keystone in driving revenue growth [28][29] Question: Operating expenses and investments - Management clarified that operating expenses were below guidance midpoint and highlighted ongoing investments in new products [36][39] Question: Dynamics in China - Management discussed mixed market dynamics in China, with strong demand in data centers but challenges in the industrial multimarket segment [65][68] Question: Technology roadmap for silicon photonics - Management confirmed engagement with optics companies to develop CPO solutions, emphasizing the importance of low power and high-speed offerings [72][74]