Total Revenue

+66% (from $60.45M to $100.31M)

Total Revenue increased by approximately 66% YoY, driven primarily by a dramatic surge in the CATV segment and strong geographic growth in China (from $28.98M to $57.27M) as well as in the U.S. (from $1.8M to $4.58M), while the Data Center revenue remained flat, emphasizing the shift in product mix and market focus. " " " " " " "

CATV Revenue

+317% (from $12.55M to $52.2M)

CATV revenue surged by over 317% YoY, indicating a robust ramp in orders, likely due to major deployments of upgraded amplifier technology and momentum from the DOCSIS transition, which starkly contrasts with the previous period’s modest revenue in Q4 2023. " " " " " " "

Data Center Segment

Essentially flat (from $44.48M to $44.21M)

Despite overall revenue improvements, the Data Center segment remained virtually unchanged YoY, suggesting that previous growth drivers for this segment were neutralized in the current period and that market or pricing factors may have balanced out new wins. " " " " " " "

Revenue in China

+97% (from $28.98M to $57.27M)

China revenue nearly doubled YoY, which reflects strong regional demand and possibly targeted initiatives or favorable market conditions, building on the growth seen in the previous period. " "

U.S. Revenue

+155% (from $1.8M to $4.58M)

U.S. revenue increased significantly YoY, despite representing a smaller portion of total revenue, suggesting improved market penetration or sales efforts in the U.S. compared to the previous period. " "

Net Loss

Deteriorated over 7.6× (from $13,858K to $119,691K)

Net Loss worsened drastically YoY, from $13,858K in Q4 2023 to $119,691K in Q4 2024. While overall revenue expanded, much higher operating expenses, increased R&D and sales/marketing investments, and a less favorable gross margin environment contributed to this deterioration, indicating that higher revenue was not sufficient to offset the escalating costs and margin pressures compared to the previous period. " "

Revenue

Q1 2025

$94 million–$104 million "

$94 million–$104 million "

no change

Non-GAAP Gross Margin

Q1 2025

27.5%–29.5% "

29%–30.5% "

raised

Non-GAAP Net Income

Q1 2025

loss of $1.9 million to income of $1.7 million "

loss of $3.6 million to breakeven "

lowered

Non-GAAP EPS

Q1 2025

loss of $0.04 to $0.04 "

loss of $0.07 to breakeven "

lowered

Consistent strong datacenter demand

Q1–Q3 consistently discussed strong 400G performance, emerging orders for 800G and 1.6 terabit products, and steady customer engagement—even though initial orders were smaller or ramping was gradual " " "

Q4 emphasized robust datacenter demand with significant capacity additions for 400G and clear forecasts for 800G and 1.6 terabit, supported by the largest-capacity expansion in 27 years " " "

Sustained high demand with increased capacity investments; sentiment has shifted from early ramp optimism to a more assured execution strategy.

Aggressive capacity expansion and production constraints

Q1–Q3 mentioned ongoing capacity investments, production ramp-up efforts, and challenges in scaling (including early inefficiencies and tight schedules) for both data center and CATV products " " "

Q4 details record CapEx investments, extensive automation (including new production lines in Texas and Taiwan), and clear capacity targets, while production constraints are actively managed " "

Focus on aggressive expansion has intensified with record investments and automation, showing progress in mitigating production bottlenecks.

CATV market performance and DOCSIS 4.0 transition

Q1 showed CATV revenue under pressure due to DOCSIS 3.1 challenges; Q2 experienced revenue declines and anticipatory optimism; Q3 reported strong sequential gains driven by amplifier products and early DOCSIS 4.0 preparations " " " "

Q4 reveals a dramatic turnaround with CATV revenue more than 4x year-over-year, driven by 1.8 GHz amplifiers and a clear rollout plan for DOCSIS 4.0 transitions " " "

A marked recovery and robust performance in CATV, with the DOCSIS 4.0 transition well underway; overall sentiment shifted from caution to strong execution.

Margin pressure from elevated operating expenses and product mix challenges

Q1–Q3 consistently flagged low gross margins (in the range of 18.9%–25%) driven by an unfavorable product mix and high R&D spending; forecasts anticipated improvements as the mix shifted " " " "

Q4 showed an improved non-GAAP gross margin of 28.9% (sequentially up from Q3) largely due to a favorable product mix from growing CATV revenue, though still below previous year’s peak " "

Sequential improvement is evident as favorable product mix factors gradually offset operating expense pressures; long-term margin target remains.

High customer concentration and Microsoft dependency risks

Q1 provided only limited details, while Q2 highlighted significant concentration with a few customers and strong Microsoft dependency in development programs; Q3 mentioned slower-than-expected Microsoft revenue and ongoing concentration risks " " "

Q4 noted high customer concentration (top 10 customers representing 97% of revenue) with less emphasis on Microsoft specifically, although prior dependency themes persist " "

The risk remains consistently recognized across periods; although Q4 is less explicit about Microsoft dependency, customer concentration continues to be a key long‑term challenge.

Advanced product qualification and ramp‑up challenges

Q1 introduced aggressive qualification efforts (notably for 800G and DOCSIS 4.0 prototypes) amid tight schedules; Q2 discussed qualification testing and slower-than-ideal ramp of Microsoft AOC; Q3 detailed ongoing qualification with a cautious ramp-up " " " "

Q4 confirmed substantial progress in 800G qualification with shipments for final qualification, clear customer forecasts, and an anticipated ramp starting in H2 2025 " " "

The qualification process is evolving positively, with previous ramp-up challenges being addressed and clearer customer demand emerging, shifting sentiment toward optimism.

Reduced focus on product mix improvements as a margin recovery strategy

Q1, Q2, and Q3 consistently emphasized the importance of enhancing product mix for margin recovery rather than reducing its focus; strategies centered on shifting toward higher-margin products were a constant theme " " " "

Q4 explicitly rejected any notion of reduced focus on product mix improvements, instead highlighting that improved product mix (especially from CATV) is a key driver behind margin recovery " " "

The strategy remains unchanged, with continuous emphasis on product mix improvements; no shift away from this approach is observed over time.