Strategic Performance Drivers
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Achieved record fourth-quarter revenue of $1.316 billion, representing 45% year-over-year growth, driven by broad-based demand across data center and communications infrastructure markets.
Transitioned to a new revenue reporting structure—Data Centers, Communications Infrastructure, and Automotive/Industrial—to better reflect the end-market deployment of complex optical and electronic products.
Data center revenue grew 68% year-over-year to $669 million, now representing 51% of total revenue, fueled by DCI products and high-performance computing (HPC) applications.
DCI products reached an annualized revenue run rate exceeding $1 billion, reflecting the ‘insatiable’ demand for interconnectivity between and within data centers.
Strategic positioning as a ‘manufacturing on-ramp’ in Silicon Valley was bolstered by doubling the Santa Clara footprint to support new product introductions (NPI) before high-volume transfer to Thailand.
Management attributes sustained growth to increasing manufacturing complexity and ‘revenue density’ in products like multi-rail architectures, which require precision optical assembly and fusion splicing.
Maintained strong operating leverage with operating expenses at just 1.3% of revenue, despite significant investments in physical capacity and footprint expansion.
Fiscal 2027 Outlook and Capacity Strategy
Anticipate first-quarter revenue between $1.375 and $1.425 billion, assuming continued momentum in transceivers, DCI, and HPC programs.
Executing a massive capacity expansion plan to increase total revenue run rate potential from the current $5.3 billion to between $12.5 billion and $14 billion over the coming years.
Building 10 in Chonburi remains on track for completion by early 2027, with 250,000 square feet qualified and an additional 250,000 square feet expected to qualify this quarter.
New transceiver programs, including hyperscale direct and merchant programs, are expected to begin ramping in the current quarter and through early calendar 2027.
Visibility extends into late 2027 based on customer forecasts, reinforcing management’s confidence in the durability of current demand trends despite lack of formal order commitments.
Structural and Regulatory Factors
Recorded a $57.4 million provision related to Thailand’s new top-up tax regime under the OECD Global Minimum Tax Framework; future tax impacts remain uncertain as regulations evolve.
Recognized a $56.7 million non-cash accounting gain from the remeasurement of the investment in Raytec, which will be treated consistently in future periods.
Acquired a new 200,000 square foot facility in Navanakorn and a 130,000 square foot campus in Santa Clara to support long-term growth and NPI services.
Management noted that while supply constraints for high-profile components persist, they have been factored into the current guidance and are being mitigated by the supply chain team.
