George Notter • Jefferies

Answer

CFO Csaba Sverha explained that the initial warrant tranche vested in Q3 upon contract signing, with future vesting tied to revenue thresholds, which were not met in Q4. CEO Seamus Grady described the HPC opportunity as significant, representing a major TAM expansion, and confirmed it will begin ramping in fiscal Q1, leading to its classification as a new reporting segment.

Ask Fintool Equity Research AI

Answer

CEO Seamus Grady responded that since Fabrinet's facilities are not in China, the company sees no negative impact from tariffs and views them as a potential positive opportunity if customers decide to move production. He clarified that any such benefit would likely materialize in months or quarters, not years, given Fabrinet's ability to transfer complex products quickly.

Ask Fintool Equity Research AI

Answer

CEO Seamus Grady identified the primary catalyst for the 1.6T ramp as the customer's Blackwell platform shipping in greater quantities. He expressed confidence that significant component constraints are not expected, crediting the customer's thorough work in securing ample supply and alternative sources.

Ask Fintool Equity Research AI

Answer

CEO Jim Anderson described the multi-year agreement with Apple as an expansion for a new generation of VCSELs, with revenue expected in the second half of calendar 2026. He emphasized the deal's role in ensuring the long-term utilization of the Sherman, TX plant. Anderson deferred on providing specific market share details until closer to the ramp and indicated that Coherent would contribute a "little bit of incremental capital" to support the business.

Ask Fintool Equity Research AI

Answer

CEO James Anderson responded that the company does not expect a significant impact from tariffs in the current quarter, and any expected effects are already factored into the guidance. He highlighted Coherent's resilient supply chain, with geographic diversity and strategic vertical integration, as key mitigation strengths. Anderson also stated that the company saw no indications of demand pull-forward from customers in Q2.

Ask Fintool Equity Research AI

Answer

President and CEO Michael Hurlston explained that a new building in Thailand is being outfitted to meet hyperscaler demand and provide manufacturing flexibility. He also confirmed that portfolio management is an ongoing process to sharpen focus on the core cloud and networking business, with more details to be shared on subsequent calls.

Ask Fintool Equity Research AI

Answer

President and CEO Alan Lowe explained that the product transition with their largest customer is an ongoing process with a pipeline of new products ramping now and in coming quarters. For the new customers, he noted that one began shipping in December and is growing, while the ramp for the other, set to begin in fiscal Q4, is gated by the time required for extensive qualification testing. He also hinted at progress with a potential fourth and fifth customer.

Ask Fintool Equity Research AI

Answer

President and CEO Shuky Sheffer clarified that the BT deal is a significant, incremental project to modernize the commerce domain for a former BT acquisition and was signed after the quarter's end, thus it is not yet in the backlog. He also confirmed that four GenAI POCs were converted into commercial deals during the quarter. CFO and COO Tamar Rapaport-Dagim added that other significant deals were signed, including one with a major US operator, demonstrating a mix of deal sizes in the pipeline.

Ask Fintool Equity Research AI

Answer

Joshua Sheffer, President and CEO, confirmed that Amdocs has a very rich and mature deal pipeline across all geographies and growth areas. However, he was cautious about declaring a definitive change in the market, stating he could provide a better assessment in the next quarter but that the current pipeline is encouraging.

Ask Fintool Equity Research AI

Answer

Chairperson & CEO Jayshree Ullal stated that while the competitive "chatter" has increased, the landscape has not fundamentally changed. She emphasized that Arista's differentiation in platform performance, features, and customer intimacy remains strong, expressing confidence in their innovative edge.

Ask Fintool Equity Research AI

Answer

CEO & Chairman Tom Stanton clarified that the buyer has not walked away but has been slow to close, and the deal remains active. Due to the delay, ADTRAN is now considering other offers. SVP & CFO Tim Santo added that the company is also exploring a sale-leaseback transaction on its East Tower, given its improved financial position.

Ask Fintool Equity Research AI

Answer

Executive Thomas Stanton confirmed that bookings were picking up, signaling an easing of inventory issues. He noted a large European customer's inventory overhang should clear by early Q1, but orders are already resuming. He stated that real estate asset sales are progressing with multiple interested parties. CFO Uli Dopfer and Thomas Stanton attributed the DSO improvement primarily to customer mix and strong collection efforts, while noting that business linearity remains back-end loaded.

Ask Fintool Equity Research AI

Answer

President Josh Isner clarified that the $600 figure represents the high end of deals and has grown from the mid-$200s three years ago due to the addition of more products to the bundle. COO & CFO Brittany Bagley noted that while there's no new OSP metric, about 70% of customers were still on basic plans as of a few quarters ago, indicating a large upgrade opportunity.

Ask Fintool Equity Research AI

Answer

EVP & Chief Product Officer Joshua Isner stated that while there were some early Q3 orders for Draft One, the financial impact is still minimal as it's the "top of the first inning." He confirmed the pipeline is growing and that Draft One is the anchor for the new AI era bundle, which will be priced at $199/month. CFO Brittany Bagley added that the company's focus will shift to discussing the comprehensive AI bundle rather than Draft One as a standalone product.

Ask Fintool Equity Research AI

Answer

EVP & CFO Kyle Lorentzen explained that while specific figures would not be provided, the company is required to support the CCS business, and these costs are factored into the 2025 cash flow guidance. Regarding concentration, he acknowledged that the A&S business has higher customer concentration than the Ruckus business, but did not provide percentages.

Ask Fintool Equity Research AI

Answer

CEO François Locoh-Donou confirmed the NVIDIA DPU solution is generally available and in promising customer proofs of concept, with the main opportunity expected as AI workloads move to inferencing. He added that the AI Gateway is also in early stages with over a dozen POCs, positioning F5 to address the emerging need for Layer 7 security and delivery for AI tokens.

Ask Fintool Equity Research AI

Answer

Roy Zisapel, Co-Founder, CEO, President & Director, stated that the investments in North America are yielding positive results, including a stronger pipeline and better customer engagement. He confirmed the sales team bifurcation is working well, improving both new customer acquisition and existing account management. Zisapel also noted that as of Q3, 100% of new on-premise DDoS sales will be DefensePro X, with the end-of-sale of an older platform creating a significant refresh opportunity.

Ask Fintool Equity Research AI

Answer

President and CEO Roy Zisapel explained that the DefensePro X refresh is driven by superior security algorithms and a higher subscription content. He confirmed that 60-70% of the older line is now end-of-sale, which has accelerated adoption. Zisapel also stated that Radware's cloud infrastructure is continuously upgraded with the latest technology. While this is a CapEx replacement, the enhanced capabilities enable significant competitive wins, such as a recent multi-million dollar deal with a major U.S. communications provider.

Ask Fintool Equity Research AI

Answer

Chairman & CEO Wendell Weeks explained that while there is still room to increase overall utilization, tightness is concentrated in the newest products. He clarified that for these new components, the focus is less on lead times and more on the rate of ramping production and modifying existing manufacturing platforms to meet the strong demand.

Ask Fintool Equity Research AI

Answer

CEO Wendell Weeks responded that there is still an opportunity to increase utilization, which will drive incremental margins. He specified that tightness is most pronounced for the newest products. He clarified that for core components, the focus is less on lead times and more on the rate of converting existing manufacturing platforms to produce the new, high-demand products.

Ask Fintool Equity Research AI

Answer

EVP and CFO Ed Schlesinger explained that the company utilized a variety of low-cost hedging tools, leveraging its extensive experience. He declined to recast prior periods, stating that the combination of recent price increases in the Display segment and the new 120 yen rate is designed to achieve the same level of profitability, making a direct restatement unnecessary from their perspective.

Ask Fintool Equity Research AI

Answer

CEO Wendell Weeks explained that the price increases are about appropriately sharing the currency benefits customers receive from the weaker yen, with the goal of stabilizing Corning's U.S. dollar net income. While acknowledging such conversations are always challenging, he confirmed they were successful. He declined to share the new hedge rate, stating it will be disclosed after commercial agreements are finalized.

Ask Fintool Equity Research AI

Answer

CFO Walter Jankovic explained that the Q3 guidance already incorporates the announced tariff changes, including the 25% rate for Malaysia, with an expected impact of less than $1 million on the broadband business. He attributed the low impact to product exemptions and operational adjustments. He also mentioned that the company is proactively exploring long-term options like near-shoring.

Ask Fintool Equity Research AI

Answer

President and CEO Nimrod Ben-Natan confirmed that the ecosystem dependency primarily refers to components like FDX amplifiers. He stated that while current deployments can proceed in fiber-deep markets, broader rollouts will become dependent on amplifier availability and maturity sometime in 2025. He clarified that integration with back-office networks is not a significant issue.

Ask Fintool Equity Research AI

Answer

CEO Michael Weening explained that the first component of the new platform is a mobile app that serves as a brand portal for end subscribers, where AI will deliver enhanced cybersecurity and performance analysis. He firmly stated there was no pull-forward of orders related to tariffs, emphasizing that Calix works with customers to manage inventory to meet subscriber demand.

Ask Fintool Equity Research AI

Answer

CFO Cory Sindelar explained the higher tax rate is not due to disproportionate international growth but rather the runoff of certain tax credits, leading to a more normalized rate. CEO Michael Weening clarified that unlike the prior two quarters, the Q4 RPO strength was not driven by a single large contract but was broad-based across many medium-sized deals, which he viewed as a significant positive.

Ask Fintool Equity Research AI

Answer

CFO Jim Moylan confirmed that fiscal 2025 will see the heaviest concentration of line system sales Ciena has ever experienced, particularly in the first half, as its RLS platform becomes an industry standard. He explained the headcount reduction resulted from a mid-year adjustment to lower OpEx, which involved terminations and reduced hiring. While headcount won't grow significantly, FY25 OpEx will rise due to the reinstatement of full incentive compensation and merit increases.

Ask Fintool Equity Research AI

Answer

CFO Jim Moylan explained that webscaler business is project-driven, leading to natural ebbs and flows, and that a single quarter is not a trend. He also highlighted the significant increase in MOFN deals as another avenue of webscaler-driven growth. Executive Adviser Scott McFeely described the inside-the-data-center opportunity as a longer-term play, driven by the need for higher-performing optics to connect GPUs over longer distances as data rates and power constraints increase, potentially requiring coherent WAN technologies.

Ask Fintool Equity Research AI

Answer

CFO Scott Herren quantified the one-time duty drawback benefit as contributing between 0.5 and 1.0 percentage point to the Q1 gross margin improvement. He confirmed that beyond this, favorable product mix, including Splunk, and significant cost-out achievements by the supply chain and product teams were key drivers. He guided for full-year gross margins to settle into the 68% to 69% range.

Ask Fintool Equity Research AI

Answer

CEO Brian Shepherd confirmed the CX business continues to perform strongly and meets the Rule of 40, while the payments business is expected to return to double-digit growth after a temporary slowdown. He noted revenue diversification is progressing well, at around 29% for the quarter. CFO Hai Tran specified that M&A contributed roughly $6 million in revenue for Q3.

Ask Fintool Equity Research AI