Question · Q3 2025
Benjamin Alexander Reitzes asked about the fourth quarter gross margin guidance, specifically inquiring about the impact of an asset sale and higher manufacturing costs, and then followed up on the communications segment dynamics, including potential Q4 upside with a major customer, Android offsets, or guidance conservatism.
Answer
CFO Megan Faust explained that normalizing for the asset sale, the sequential incremental flow-through is in line with their financial model (around 30%). She attributed the margin impact to higher material content in Q4 compared to the previous year. President and CEO Giel Rutten stated that the communications segment is guided down slightly in Q4, with continued strength in Android partially offset by a slight tapering off in the iOS ecosystem, reflecting their current forecast.