Coherent (COHR) 6 Feb 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Coherent Corp. Fiscal Year 2024 Second Quarter Earnings Conference. [Operator Instructions] Please be advised that today's conference being recorded.

to Investor conference Paul Relations like Vice to Silverstein. now of President for would hand over the the I Coherent Corp,

joining of be available Thank Thank webcast replay XXXX good and Investor for call. our Relations the for section earnings will you, fiscal website. second call morning, The on quarter our Carmen, you everyone.

we senior analysts the will your shortly. and a Mattera, call, Dr. Chuck introduce of majority we On the investment questions will of devote have leaders coherent our CEO, This answer Chuck Coherent's morning, and Chair and to community. who number time the from

furnished filed Yesterday, after Form X-K. documents shareholder to a our releases investor in earnings market our posted presentation The we performance, key and outlook. XX-Q. close, included the contains trends Investor regarding operating shareholder press press of these release, historically statements the our morning, and and This section updated a a we financial letter Relations in and issued website our information detailed letter

of in a forward-looking short to We forward-looking make may statements. may statement Actual performance from forward-looking market about refer results differ those begin, about statements. outlook. including and/or and statements statements, we that future the Before our respective set SEC as shareholder materially. The and dates. letter actual forth could risk results assume obligation their reports which to only statements, speak factors no cause We differ to update forward-looking

we measures. shareholder discussion and present are to financial we the the GAAP letter. During financial letter. non-GAAP in both our included to reconciled If do, non-GAAP this is shareholder a historical limit that call, may we of in measures, measures non-GAAP we those reconciliation GAAP discuss will If

this OFC, his please the over a San industry, communications instrumentation March the on will April in market. meeting host overview to that or with which It an Diego, the focused to Optical host our Chuck call on our third regarding turn market we update Fiber of And our year, we I to will opening be Conference, remarks, plan market. we webcast, in webinar. provide for XX at be investment during note Before plan will which

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turn it is CEO, to call my over that, With pleasure Dr. to Chair the Mattera. and Coherent's Chuck

most Thank a you, here Paul. It's largest day Silicon of customers. to close in Valley, our great

said before, I've the most development responsibilities. As leadership among is CEO's important

I Officer; Martucci, in Barbarossa, LLC, Coherent fireside Commercial subsidiary Chief Parthasarathi, have Given who Executive us organization and Materials also the silicon Coherent Chris the came Vice President acquisition; Sanjai us Dorman, Silicon carbide disclosures, Officer Chief Bob following Sohail Financial through business; for Dr. Dr. participate Khan, Officer our newly to Technology Q&A asked our senior Lasers, and and the who leads sales came President; Interim the Marketing Chief acquisition; Magnus global through Bengtsson, Dr. who Bashaw, shareholder segment; Rich President Carbide Chief Officer. our Dr. who Vice call: President Executive today's letters Julie leaders Strategy Giovanni Officer; extensive Eng, and the created on service to Chief

they markets, of depth among information of about source investors breadth and rich business. being provide industry's will the overall our As operations a best, the and technologies,

to with quarter from stronger excitement profitability. enhanced and confidence second greater return the emerged We and meaningfully growth regarding a

market, for and operating which and in demand of the invested announced datacom four the our Corporation, in transactions they vertical our market, of our silicon long-term of all for market and we with AI-driven both agreements in silicon margin, wafers; second revenue gross confirmation delivered improvement vertical into epitaxial of being aggregate solid communications signs own our carbide business and verticals strength five the planned sequential within healthy quarter, improving and of repayment in to highlights sequential margins. previously the communications demand operating fund and able increases our in the supply from entered the our in increase ongoing of in capital include: For supporting telecom Carbide quarter and in The and billion $X Electric its XXXX debt Silicon an LLC substrates and in resulting carbide expenditures. DENSO Mitsubishi industrial fiscal

drive control rebound and actions across a expect improvement end market businesses actions, are across quarter. structure, waiting we mix drive forecast cost carry margin in We've company, we revenue our already in higher helped These to along the a implemented will efficiency. virtually operating contribute demand in not the with of for that our in improved and While to rigorous margin all second gross the for enhanced in operating expense our the and sequential us.

a we're We are from done. on roll, but far

transform while completing continue the and our Coherent. of to to we operating company enhance resiliency we integration the As performance, production footprint will improve legacy operating optimize

exploring to opportunities, are including material unlock other also shareholder strategic acquisitions We value. not

Now for some numbers.

retired debt. non-GAAP we equipment EPS invested end the which for was operating environment of midpoint posted guidance. million the continues $X.XX, with guidance, million and Operating cash our and of the We was high above capital are challenges, we the macroeconomic While revenue $XX $X.XXX to of of We results flow quarter. was $XX pleased present $XX our of above our million. billion, which in

continuing the plan are addition structure, our as our to including acquisition in we announced restructuring as and In especially resiliency to operating improvement consolidation and global Coherent to our our taking through core improve realization previously in integration our transformation well and actions substantive from legacy margin plan. of drive performance, synergy ensure invest we and to the assets,

Non-GAAP follows: billion, XXXX to share updated of for Our guidance up fiscal is $X previous per for $X.XX. $X.XX $X.XX to of to a revenue previously. $X.XX, is our $X.XX million of our billion per $XX revenue quarter $X.XX $X.XX which the fiscal share end third guidance. of XXXX earnings as billion, low And to the from guidance earnings $X.XX to at of approximately of is approximately $X.XX billion non-GAAP represents increase which

the appreciative say how all am on our positioned with I is products exceptional how that started markets Before stage rapidly with differentiated dedication the like we now, for of and I take who setting growing. efficient Coherent leaders and your for to call delivering other beyond. and senior this well platforms employees technology, and of what's questions, high-quality talent next manufacturing capable to proud would of are

leaders largely better trust to stability positioned and I business creating and flywheel creating And partnerships opportunities and of our in our the of other and existing that we advantage growth penetrate don't markets, have of effect are cultivated simply market to increased others take full have. scale, with these our than deeper because intimacy, into we core competitors a positions market believe of our many

In the the to upcoming we've transformation ongoing and we restructuring optimization years, announced. attributable Coherent upside integration, have projects special tremendous and platform legacy potential cost that

given us success map and capitalize broader expect in and our road will to record the on in of plan which the markets We and track market proven recovery allow have place, strong opportunities. a and growth our

demonstrated capitalizing and world-class on team technologists, market endowed with a with executives pioneers a for and capability We of identifying industry megatrends. are

over it turn that, With Paul. to I'll Paul?

you, Thank Chuck.

is [Operator hour. We open for for will an scheduled analyst call This Carmen? that, questions. call Instructions] With now the

with [Operator JPMorgan. Instructions] Our Samik first from Chatterjee question comes

to because to one it's there significant In entire the letter, question, the team engagements have keep the just execution. you that number with. of AI-related strong Maybe to datacom. I new on customers a if Congrats shareholder referred you

awards potentially the magnitude of those of have. If you turn insight those to relative can orders customers, more the you win about existing can those give that nature bit into the if us to a engagements you were

just a then quick And clarification.

You sequential of did from roughly capacity is here to we linearly growth datacom, capacity in expect where ramp, sort have should revenue on? XXX% that on XXX-gig expand

thanks your Sanjai? Samik, for question.

for Thanks your Sure. question, Samik.

more hyperscalers are and large-scale new any technology, down also seeing to engaged well the few MEMs up new it, we We're as the ecosystem. of with extend that So and with drive deployment entire as broadly. now

of we in customers Did broad of that very to answer that's group have grow continuing question? a So your terms engagements.

the ramp, on Anything Yes. capacity Sanjai?

plans, say run $XXX the from letter basically in we XXXG XX% that fiscal said And will did we in Samik, that crossed 'XX, XXX%. we grew of we transceivers -- ramp-up be the ramp, shareholder AI-related million. revenues XXX% hit quarterly over capacity shipments, the our also we that quarterly in our of datacom In rate quarter-over-quarter. applications. So That's the our

So the we excited ramp the are with really and growth market. the of

and that gives the expecting fourth I'm indication. third than any third, second you And will If quarter greater Samik. greater than the the be quarter the

from the Roy line Comes with Stifel. of Ruben

your -- shipping it's team. are lead of chain year that there some sounds kind to behind demand? shortening. Or the as on of question there in one Is on to majority understand just the like factor around supply? are are a of the follow-up Chuck, Congrats out shipments? a that constraints the improved, limiting AI short commentary rest your to and now, you trying for well. Would that the are say transceiver still my times of are question to supply constraints. It A the they supply the networking components

of what out you're Thanks ramp, such in of. Okay. constraints a get Ruben. lying regard through is front what's a lot, steep trying anytime you front know, Ruben, you you as with in go to to

the surely mirror, So if moderated. look the constraints in have rearview and you eased

constraints. up, we that have the see you ramp of to when manage But size going number of a the we're

then second third, and anticipate have constraint, the them. we first The to

to This and get super, beyond have place. 'XX. with And super in we're our is super-hot We market. looking a FY agreements exciting suppliers

the chain 'XX up I keep well your question, supply in process that with hope we're can be of FY into Ruben. out answers sure that So our looking to us.

Morgan of from And Meta line it the Stanley. with Marshall comes

Great. of A questions. couple

gig for ramp just of seeing kind just you of million you you a top on that the orders capacity, back? this had business a able to expect AI one, that of during inventory of and And that fiscal of XXX what couple that, be hundred some you then when under of had expected year. couple quarters demand on just are transceivers, fulfill of if to to noted this Just you ago, you come or

guys are faster that just Obviously, the million ramping couple hundred outlined little earlier in of expected of bit of than that year. in you kind terms a you

you're exceed excess or Just able of you demand? be do to to meet like going kind feel how those

Thanks, Meta. Thanks Sanjai? for interest. your

Meta. question, your for Thanks Yes.

we from almost in that And transceivers in XXXG quarter-over-quarter. XX% will said, So letter much shipped quarter, AI-related then transceiver it said quarter. Meta, shareholder over our our of -- that datacom applications. we be last we in million previous 'XX, revenues smaller XXX also the It fiscal so XXX% was just grew our

we So growth XXXG a our in are strong shipments. projecting very

that referred a to are We as answered on earlier. ramp-up, your Hopefully, Chuck question.

mean, I seeing I you the any of of just terms remainder gig of sub-XXX are guess are in on the clearing inventory demand of XXX I of in commentary, understand -- what in the kind versus but terms seeing the terms on business? we XXX-gig -- gig what but just other

Okay.

rebound haven't products. XXXG. And why is non-AI one our -- XX% of that's much factored huge the said from revenues in the AI is business XXXG. Pretty the And in we So datacom. fiscal but any in growth be will of growth of most 'XX, over all and of XXXG in the that's we in our related

from with of the comes James. Raymond it And Leopold Simon line

willing compete I be I'm competitors which looking it about in market. demand some for you what's great, like should take seems are And center can on because your I'm candidly wanted struggling margin-favorable, of your well margins. in as probably but to thoughts transceivers. lower data talk XXX-gig happening is to how And this

that that? so pressure us you're profitability. Could about how thinking And you understand help might

Giovanni, give.... Simon. like to would Thanks, you

the for thanks the question. player in integrated Simon, we a most the reminder, are space. Well, as vertically

we including we what, largest for pixels. So in about well, world example, obviously guess our of pixels shortage have far, heard, so the competitors. supply people by talking the

than have the good So own line control very our have supply of mostly other of ICs. And for we the manufacturing. we a kind components

XXXG We XXX the have most complete as past. in announced both the much space, the we laser pretty offering and in

from a will think market. hyperscale our with profile very, we map not also but competitive have the performance are that and those and always to standpoint. strategic to which very we pretty margin cost powerful, only that So much merchant a remain versus everything will think road that customers very have buy standpoint like, the from standpoint, structure We best the to be

these standpoint. in So profitability a that will we an are of active advantage many very from be technologies

to just profitability. Giovanni where portfolio control, than stay. on of And needs I would us, I have that making the market, time focus are we're add, making developing And ones thank to more for time be we're you, Giovanni. would is we as Simon, going tomorrow. full time to for that described, having add, to Those and it to that's today. today and exciting -- a Simon our full products even for volume

It We record. sure. We're have competitive a to for a track market, intending that's is compete.

Jed Comes from William the line Blair. Dorsheimer of with

talk -- you in customer base the update the there offering? on Most on cross what kind the just on you about wondering the datacom be silicon I'll questions then there? I seeing on of to just, -- out. update points saw But just be on just I of there's different currents able maybe I'm an I've -- to been that two-part highlight think time it's market. question. the you so first the guess, seem call seen in And might MicroLED, products from Maybe carbide, if Coherent you're could or you're be that of some so I data

two Sohail. your will Chris thanks then and go Jed, for first questions. Chris?

Chuck. Yes. Thanks, Yes.

developments spoke the X-micron and about towards for in display. from called is for received quarters about moving from MicroLED you currently that we to Forward MicroLEDs the tools wafer multiple previous the the the we take orders Korea where Transfer, have XX-micron China, the which So a Laser-Induced we and Taiwan process

So impact next a over is increasing of about customer will that we're now very high the this growing the years. very engagement and engagement market level be are X market. to television MicroLEDs the on seeing excited X a and And of

Thank Chris. you,

Sohail?

hear you Can Hello. me?

Yes.

question. for Thanks your

as Mitsubishi and long-term from years. The and and and existing supply upon based next we position, agreement XXX-millimeter. announcement as that, customers from and the new well silicon driven We place. we our plan, XX the sticking are seeing to market more which we lot had our X in with of the are the quite with engagements over And bullish for have is DENSO which are prospects both specially strengthened interest customer growth about engagement carbide

we of So to we investment business the to and of year-over-year. will expansion, see are going the and stick our our to growth and plan quarter-over-quarter continue

Capital the It line Craig-Hallum with Group. comes from Shannon of Richard

a seems Maybe a why you down, down why flat to one help you OpEx synergy it being I'll of little you're announced here or and or here. more here, restructuring I to be growing I rate a at guess, a implying on ago. ask pro financial that bit fairly anathetical which X seems a after after is, seems growing to quarters it forma a seem it like like decent plan, at of couple steady It to quarters be the X Can think, bottoming might us understand rate out here? basis,

Thanks a will Rich take lot it. Richard.

yes, our guidance has synergy other OpEx. plans The as forward you we our as see in well the the down our pointed in we have cost AI around go out, and you initiatives around that kept the in in thing So expenses place. really R&D, as that reduction is product as ramp-up big

a our SG&A good done the We've the R&D. job really really expenses. from coming that's So increases in

are on our information for R&D second and FY received investments new of we've X the customers last clarity. the from basis X half the Richard, in quarters 'XX beyond in year, aimed those for the of Look, or great that

way Chuck, to like characterize want end like by might anything those any sit, investments your markets where or segments that? you'd or

starting starts In Everything those extremely quickly, that. with are markets growing, are AI, that with Richard. growing

from BNP comes It for our Paribas. question. Karl One next moment Ackerman with

couple earlier ramp also critical wins year? of indicated XXX-gig you could of ramping right VCSEL the you quarters. design be supported guess you will indicated could X.XT transceivers. X.XT I on now ramp How helped on you over discuss is your your the and As this that, address next both or capacity of And call, internal later which the this perhaps has supply for X.XT, if on

for your to that to she Karl, thanks clarify, will question. if will. to And like there's anything Giovanni. Please, would add, Giovanni take add, it. Julie

[ by too, like that datacom. X are our Thanks external mean, we on customers time, have and point fabs in it's X said have for Actually, at and question. are customers ] capable leaded producing our fab our facilities, But I course, of we ramping we competitors. the X facility. which this of as our we're internal relying own earlier, only critical

advantage by earlier, understanding a have the supply -- So being -- both internal we basically the the as have good of very our we needs customers. external of integrated a of said to required and

I terms supplies. with have we this So we nevertheless, have rate. demand of in But that. are think similar a job full And we both control in keeping ramp challenging of up data internal ramps in doing and past, had external a the great a is the the

shipping we're demand. based least at on So

behind go by not even to need requested we forecast. We if are the still as

following it are the with right now. we see up we demand So as

So challenge for at a we our don't see VCSEL that least being supply.

like on would Julie, X.XT. question Karl's add to regarding

Right.

what is of these to to It's very also were Giovanni in unique said actually Just few the that one we add a make industry the capability. high speed. can

And from Arya Vivek America with Securities. of Bank it's

operational useful Friedman XX%. is provided takes utilization, And AI products the from to previous at efficiencies all and But back Vivek. and improving quantify puts outline on today? gross or are margin This a new just on products? the given but to above maybe for margin, in to mix, these on On average momentum a you gross ranging corporate actions the Blake question, transceivers, return goes you can this

thanks. Rich? Blake,

Yes.

a question. So two-part

The call, of -- think of terms that I in average is earnings is mention first question in average And the the the the did we margin. it AI. last at corporate

that's first our is future, ability the volume, to the In terms thing of in obviously, drive one. margin

our utilization the going and of second in is our improved our increasing reliance restructuring plan importance also of of terms terms which fabs X the our X utilization going plan, the within forward. fabs, gross of really really of margin of be utmost reliance The synergy to our in really is have

It from line Rolland of the Susquehanna. with comes Christopher

Can you hear me?

Yes.

had Great. I clarification the one results. Congrats and question. on just one

is primary want First, make VCSELs. gating the right AI got I on that just to I The whether clarification. or not. XXX-gig issue sure

And then to secondly, telco. about I talk wanted

of but tell the kind we're you it data and you're of more in coming guys. telco, kind points that more mirror rearview for be like weak So to out for could us seeing feels maybe going

the can rate Are year through where quarterly -- looking out to you of there? telecom expecting December forward? of run is the So grow clear here? on what And kind kind for we a normalize bottom

Okay, Chris.

Giovanni So telecom VCSELs will and Giovanni? question your will clarify Magnus the question. take regarding

Yes.

maybe okay? -- challenge me don't No, clarify, from we clear. from try to the let the So be have VCSEL standpoint it's a standpoint. not, a So supply

Of happen, you to of ramp new course, processes. things assembly modules, when of a number including of there's other production transceiver tests, automation need that a lines,

And of our chain, ramp. course, that to there external ICs, is around particularly ability supply also will impact

on coming the supply. than -- everything demand we So And is together. demand definitely based is the could stronger what

but standpoint, We to overall forecast are -- by necessarily volumes capacity-limited the device terms in caught to from that previous have we customers versus but as an of the most just our the not been forecast. ability a surprise recent ramp by by

the maps. what with know are looking We road realigned next-generation customers We are exactly for, products. for

internal -- external -- a internal suppliers. back that superior a production don't we And with for question, recall from both so experience demand. the And VCSEL will have adapt to going have experience capacity capacity we to your keep don't we also challenge chain first to want our standpoint. up I and supply Currently, we

support own -- as obviously, business, our we So we we transceiver that don't a as need to product. can manage

Thanks, the Giovanni. telecom take Magnus, you question? would

in we quarter saw we the the in the also new out first double-digit And engagement customers that, about of XX%. from the 'XX, October look for growth, growth as fiscal if expect balance telecom, coming additional but on the the growth half by over we the products. of in second both half. for we over And design with we have a so back expect lot market quarter improves market December beyond year, wins Chris,

Mark from Miller The It Company. comes with of Benchmark line the

progress. your on Congrats

other of automotive XX wondering or terms and applications the are so? terms What in applications. in at months over new looking for was Just VCSELs you of next

one? that take you will Julie, Mark. Great,

Sure, Sure. yes.

sensing. applications, all in vehicle, the world the in mobile addition VCSELs sensing sensing to sensing, in use phone market. market, then future it application. including we're of VCSELs datacom addition in applications can to of the in in other potentially a for Obviously, be so many So can health potential kind VCSELs And used that, and you in

Comes with of Tim the Markets. line Savageaux Capital Northland from

have talked And expect have at you might missed follow shipments But you XXX-gig outlook quarter number by up I earlier. about if where you in fiscal I'll there. to for about or QX the Sorry doubling in of from either transceiver XXX go kind Do that this million year-end? sequentially. an

Yes.

Thanks said QX Tim. in than that question. for greater is the Okay, our shipments is your have QX We're missed to to on It's said and what I be right. a expect what and up QX. may Tim, we ramp. going I in than you QX greater

that in bit. Okay. mean, I Well, growth for fairly might on little if here maybe modest I QX follow and a up talking growth telecom. sequential about you're

QX So results, might you come at I you stuff your and guess, look for like lower the pretty down good. are have speed even seems -- it looking if

So bit, revenue? of some ramp what guess, slowing the Is is the puts or overall a takes the... are I that from Or datacom there. seeing and as offsets for -- you're dynamic sort that

question an the same is insightful Sanjai had really question. it. Marshall Meta to and It address tried

take him pass another at let Let's it.

Okay.

for the question, Tim. So thanks

of just the next market the Tim. XXXG and terms market, market above, XX% AI. in forecast of at is CAGR -- it's on X in market, redid which So the the the our fastest-growing the We a growing is segment really years,

it's very faster aim -- market and we growing grow market. to that than a expect sharply So we

rebound our if significant or clip, are the networking really revenue growth factoring our market in non-AI, certainly growing growth. will, market we Now you at not traditional is not that and a

that's AI-related clear. growth from So lot revenue applications. our of a is coming Hopefully,

Sanjai. Thank you,

Loop And Capital. it's with Baruah from Ananda

growth Is X actually, Congrats that on is XX% Sanjai, follow-up just what there, Yes, the strong clarification. over execution. the specifically? -- years a guess, the next I

calendar 'XX at to It's transceivers and XXXG XX% of growth the CAGR. is a calendar above from transceivers, it 'XX. datacom Ananda,

opportunity my thinking XXXX complex? Super transceiver that's genAI specifically, any telcos way at yet question Fortune so like of And think is, helpful. about I outside the I'm say, to on-premise, guess sites. it for me. And the for And hyperscale and

Okay, will the next take Ananda. Julie one.

yes. Ananda,

obviously, web could as out, to on the biggest -- that as the out, time smaller scale. host other deployments the So that services either or goes entities point people are And spreads may choose to on-premise to of that forgot have market. base, so Ethernet the -- then the the actually so similar genAI second the their customer services And I -- question. biggest part you the diversified

-- telecom. With over it will regard to spill to

Thank to you. data has because Yes, somewhere. eventually, getting it all telecom the that's generated to inside all spills over go

And do most but that, finally, comparison, we eventually that's time, advanced and our believe these lasers. genAI also So that impact direct way process our inspection the revenue over should non-AI revenue. positive a that so might be semi-cap a not something impact of chips will also for datacom telecom segment our to nodes, in require industrial then beneficial

the in a besides surrounded. OEMs to that have and verticals, business, the by build devices. have semi-cap and and to tools, to laser-based providing growth also add that including have would underpinning I engineered mean, tools we make material tools telecom equipment I AI Ananda, it's we datacom the it equipment new

from Riley. it's with Dave Kang the And of line B.

Chinese ARM market. the it that X is reach past ARM think lasers. an you as on A could question about has in penetrate and X-figure the opportunity I figures talked if you lasers successfully Chuck,

can an you us give update there. if wondering Just

opportunities. other for exciting Thanks of one super asking Dave. Thanks, Giovanni? about our

learned a production of China we're competitor just maker on ones question. thanks the that progress. replace lot displaced battery it to making in Dave, for the our major kind laser with of our line. recently, Yes, the Yes, Actually we

it's huge makers battery in to it's goal the since we world. largest of for be a the going So opportunity think our one

just So keep we provided you EVs. of that to space. grow they quality profile, well limited see advantage for our existing ARM And spatter-free and the kind batteries the laser be by customers of no-porosity the we believe the to in think to not market major it's going addition to in ramping production,

we're advanced for think automotive to on application in working tools. some equipment the have lithography engaged tools not example, are I that, on the alloys we for welding needed beyond market, by seeing special laser cap some recently only but semi those market, been provide parts that in

welding. to we're to when Dave, it drive shift aiming laser paradigm comes a

And it Needham & line the comes from Jim Company. of with Ricchiuti

consider value, to wonder you on on you early shareholder shareholder have? in strategic I'm opportunities would in maybe that the have that to expand not could other if suggesting you wondering Are smaller unlock might want some what areas you I elaborate you that necessarily M&A presence to the you that may letter means. comment, the pursue some

from time, That's a time great question. it. to We're about asked

We are ask like prudent he'd And to if Bashaw, stewards of our President, Bob our capital. let me remark.

said, are our open happy transactions Yes, and as you been kinds to, always is And shareholder driver. sure. all Chuck Yes, know, history great partners, have I'm Yes, we we as to both value Chuck. of in the of company. the

we lots XX So for we to like grow of been considering are actively, alternatives value. years, shareholder have

we transactions. our transactions, in material, the not be smaller going focus these letter, shareholder to are range potential indicated across all is of As probably that but

that underserved? you're Is of some areas Is expanding focus? that the it a in case

sure. can a if are tremendous the to lot at we corners -- areas for of all and technologies you There's look There's Well, have, look to also the grow. opportunities there in that partner. opportunities we for

active all have have those we areas. engagements options are and in -- So those we of considering

And Securities. Rosenblatt of it Genovese Mike comes from the with line

datacom this as the revenue you I the million XXXG of somewhere I a And on I talked up in I'll should to your the than guess year. to range about percentage higher transceivers of go When parse $XXX the XXX% year, end comments here. horse entering dead XX% beating be

preamble, the the the that of revenues like still a quarter? we the XX% the XX% my that with sort guys year Or half looking of said, last so of are being has little and year as bit? first of half changed in at the question And is two-part is, second -- you in that

that we which was growth Sanjai's right Is right? I put he then think just the said for think should in that secondly, heard I fiscal at look fiscal business? start we about where XX%, we And to CAGR, 'XX way roughly 'XX, as that if

Thank Okay. you, Mike.

Okay, Sanjai?

Yes. Thanks, Chuck.

think pretty is revenue are growth what fiscal terms are Mike, -- line in So the terms . of stated even second of half I our in year. better you aiming of than do in our going we to the with much pattern to Obviously, that rate. we

is XX% I remind CAGR. And it you, is X-year a

So in maybe keep mind, just that Mike.

just XQ? bit still is flattened that XX-XX still little hasn't I -- XX-XX? It's because we're but that XX-XX, -- I'm a Sorry, guess, performance of out in good though, targeting the

to that, and higher than a little right. maybe XX, close a than but It's bit that's roughly XX lower little

I Thank session. concludes any this back comments. to it you. Silverstein for final the will Paul turn And Q&A

Thank their Carmen. I with you We for this questions. you morning. to talking in line want of on analysts for call us thank on And to thank joined all having the I the the future. thoughtful want you, you. Thank to look the all forward

joining Thank today. you, gentlemen, for ladies us and

may disconnect. now You