Telecom Performance and Recovery

Q4 2024: Noted stabilization after a 20% revenue decline due to inventory digestion with early signs of recovery. " " " Q1 2025: Recovery began with modest revenue growth and stabilization of traditional telecom. " " " Q2 2025: Marked recovery with significant growth (24% YoY, record-level revenue of $348M) driven by DCI products and system wins. " " " "

Q3 2025: Telecom segment posted record revenue of $406M, highlighting a strong turnaround from prior inventory challenges and reaffirming long‐term sustainable growth drivers such as 400ZR/800ZR and upcoming wins. " " " "

Strengthening sentiment – from initial stabilization and modest recovery in earlier periods to record revenue in Q3, indicating accelerated recovery.

Next‑Generation Datacom Product Ramps and Transition Risks

Q4 2024: Discussion focused on the coexistence of 800G and 1.6T products with an emphasis on preparing for the more complex 1.6T ramp while maintaining current-generation demand. " " " Q1 2025: Mentioned early shipments of 1.6T transceivers with delays due to foundry yield challenges and emerging product mix shifts. " " " " Q2 2025: Highlighted readiness for the 1.6T ramp, detailed timing, sample qualification builds, and some anticipated short-term softness in datacom revenue. " " " "

Q3 2025: Expanded discussion on the 1.6T ramp with emphasis on capacity reallocation from 800G, clear acknowledgment of short‑term softness and start‑up margin headwinds, and a confident long‑term outlook. " " " " "

Continued emphasis with increased clarity – Transition risks remain a focus, with current sentiment stressing preparation for the ramp amid short‑term pressures.

Capacity Expansion Initiatives

Q4 2024: Announced the decision to break ground on Building 10 (2M sq ft) with expected capacity addition of ~$2.4B annually and clear financial plans. " " " Q1 2025: Discussed preparatory steps (contractor lining, approvals) with optimism to begin construction by year‑end. " Q2 2025: Detailed Building 10’s scope, timeline (18 months), and its significant capacity boost (+50%) while outlining CapEx impacts. " " "

Q3 2025: Provided an update that Building 10 construction, initiated in January 2025, is on track with potential for an accelerated timeline and remains a critical long‑term capacity initiative. "

Consistent momentum – Ongoing commitment to capacity expansion with progress updates reinforcing the strategic priority.

Supply Chain and Component Risks

Q1 2025: Addressed component risks by noting ample supply and early qualification of new sources; customer delays (e.g. Blackwell) provided additional time. " " Q2 2025: Explicit discussion of EML shortages (200G/100G) and qualification efforts, acknowledging supply chain dependencies and external timing uncertainties. " " " "

Q3 2025: No specific mention of supply chain or component risks was made during the call.

De‑emphasized in current period – Previously detailed concerns are not mentioned, suggesting a potential resolution or lower focus.

Customer Concentration and Dependency Risks

Q4 2024: Highlighted high concentration with NVIDIA (35%) and Cisco (13%), with the top 10 customers making up 86% of revenue. " " Q1 2025: Emphasized dependency on NVIDIA for designed transceivers across multiple data rates and the inherent lack of visibility into sourcing decisions. " " "

Q3 2025: No discussion or reiteration of customer concentration or dependency risks was observed.

Not reiterated – Earlier concerns were discussed, but they are absent in Q3, suggesting reduced emphasis or stabilization.

Strategic Cloud Partnership and Expanded Cloud Market Opportunities

Not mentioned in Q4 2024, Q1 2025, or Q2 2025.

Q3 2025: Introduced a strategic, multi‑year commercial relationship with AWS, including a warrant purchase arrangement, aimed at expanding cloud market opportunities and potentially serving as a proof point for engagements with other hyperscalers. " " "

New topic – Emerged in Q3 2025 with a positive and strategic outlook for market expansion.

Short‑Term Margin Pressure from Ramp‑Up Costs

Q4 2024: Noted margin pressures from seasonal merit increases and ramp‑up costs for new programs (e.g., Sienna win) anticipated to impact Q1, though operational efficiencies were expected to offset this later. " " " Q2 2025: Some discussion of FX headwinds affecting gross margins, but no explicit mention of ramp‑up cost impacts was made. "

Q3 2025: Explicitly highlighted margin pressure including a $4M contra revenue impact from an Amazon warrant vesting and start‑up costs for ramping new products, with expectations of margin recovery as ramps progress. " " " "

Increased focus – More explicit commentary in Q3 compared to earlier periods, underlining short‑term cost headwinds amid ramp‑up.

Emerging Automotive and EV Charging Infrastructure Growth

Q4 2024: Automotive revenue grew sequentially (17% increase, $86M) as non‑optical communications revenue rebounded after inventory issues. " " Q1 2025: Emphasized strong automotive growth with EV charging infrastructure products breaking $100M and demonstrating excellent momentum driven by share gains. " " "

Q3 2025: No mention of automotive or EV charging infrastructure growth was observed.

De‑emphasized – Previously robust growth discussion in Q1 and Q4 is absent in Q3, indicating a shift of focus.