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Operating Segments and Geographic Information
 6 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Operating Segments and Geographic Information
Note 18. Operating Segments and Geographic Information
The Company evaluates its reportable segments in accordance with the authoritative guidance on segment reporting. The Company’s Chief Executive Officer, as the Company’s Chief Operating Decision Maker (CODM), uses operating segment financial information to evaluate segment performance and to allocate resources.
The Company’s reportable segments are:
(i) Network Enablement:
NE provides an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. These solutions include instruments, software and services to design, build, turn-up, certify, troubleshoot and optimize networks. The Company also offers a range of product support and professional services such as repair, calibration, software support and technical assistance for its products. NE’s avionics products provide test and measuring solutions for aviation, aerospace, government, defense, communications and public safety.
(ii) Service Enablement:
SE provides embedded systems and enterprise performance management solutions that give global communications service providers, enterprises and cloud operators visibility into network, service and application data. These solutions—including instruments, microprobes and software—monitor, collect and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization.
(iii) Optical Security and Performance Products:
OSP leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell technologies for the anti-counterfeiting, consumer electronics, industrial, government and automotive markets.
Segment Reporting
The CODM manages the Company in two broad business categories: NSE and OSP. The CODM evaluates segment performance of the NSE business based on the combined segment gross and operating margins. Operating expenses associated with the NSE business are not allocated to the individual segments within NSE, as they are managed centrally at the business unit level. The CODM evaluates segment performance of the OSP business based on segment operating margin. The Company allocates corporate-level operating expenses to its segment results, except for certain non-core operating and non-operating activities as discussed below.
The Company does not allocate stock-based compensation, acquisition-related charges, amortization of intangibles, restructuring and related charges, impairment of goodwill, non-operating income and expenses, changes in fair value of contingent consideration liabilities, or other charges unrelated to core operating performance to its segments because management does not include this information in its measurement of the performance of the operating segments. These items are presented as “Other Items” in the table below. Additionally, the Company does not specifically identify and allocate all assets by operating segment.
The following tables present information on the Company’s reportable segments for the three months ended December 31, 2022 and January 1, 2022 (in millions):
Three Months Ended December 31, 2022
Network and Service Enablement
 Network EnablementService EnablementNetwork and Service EnablementOptical Security and Performance ProductsOther Items (1)Consolidated GAAP Measures
Product revenue$150.6 $13.5 $164.1 $77.4 $— $241.5 
Service revenue29.1 13.9 43.0 — — 43.0 
Net revenue$179.7 $27.4 $207.1 $77.4 $— $284.5 
Gross profit$115.1 $18.3 $133.4 $40.5 $(6.9)$167.0 
Gross margin64.1 %66.8 %64.4 %52.3 %58.7 %
Operating income$18.5 $27.5 $(23.1)$22.9 
Operating margin8.9 %35.5 %8.0 %
Three Months Ended January 1, 2022
Network and Service Enablement
 Network EnablementService EnablementNetwork and Service EnablementOptical Security and Performance ProductsOther Items (1)Consolidated GAAP Measures
Product revenue$189.6 $17.2 $206.8 $70.6 $— $277.4 
Service revenue24.8 12.6 37.4 — — 37.4 
Net revenue$214.4 $29.8 $244.2 $70.6 $— $314.8 
Gross profit$138.0 $21.4 $159.4 $39.7 $(8.6)$190.5 
Gross margin64.4 %71.8 %65.3 %56.2 %60.5 %
Operating income $45.6 $27.7 $(24.0)$49.3 
Operating margin18.7 %39.2 %15.7 %
Three Months Ended
 December 31, 2022January 1, 2022
Corporate reconciling items impacting gross profit:
Total segment gross profit$173.9 $199.1 
Stock-based compensation(1.2)(1.2)
Amortization of intangibles(5.7)(7.4)
GAAP gross profit$167.0 $190.5 
Corporate reconciling items impacting operating income:
Total segment operating income$46.0 $73.3 
Stock-based compensation(13.0)(13.3)
Amortization of intangibles(7.9)(10.0)
Change in fair value of contingent liability(1.3)— 
Other charges unrelated to core operating performance (1)
(0.9)(0.8)
Restructuring and related benefits— 0.1 
GAAP operating income from continuing operations$22.9 $49.3 
(1)    During the three months ended December 31, 2022 and January 1, 2022, other charges unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, and loss on disposal of long-lived assets.
Six Months Ended December 31, 2022
Network and Service Enablement
 Network EnablementService EnablementNetwork and Service EnablementOptical Security and Performance Products
Other Items (1)
Consolidated GAAP Measures
Product revenue$316.5 $24.1 $340.6 $168.6 $— $509.2 
Service revenue58.1 27.3 85.4 0.1 — 85.5 
Net revenue$374.6 $51.4 $426.0 $168.7 $— $594.7 
Gross profit$240.7 $34.3 $275.0 $92.3 $(15.5)$351.8 
Gross margin64.3 %66.7 %64.6 %54.7 %59.2 %
Operating income$47.3 $66.1 $(40.7)$72.7 
Operating margin11.1 %39.2 %12.2 %
Six Months Ended January 1, 2022
Network and Service Enablement
 Network EnablementService EnablementNetwork and Service EnablementOptical Security and Performance Products
Other Items (1)
Consolidated GAAP Measures
Product revenue$369.2 $28.1 $397.3 $169.2 $— $566.5 
Service revenue50.1 24.7 74.8 0.3 — 75.1 
Net revenue$419.3 $52.8 $472.1 $169.5 $— $641.6 
Gross profit$270.7 $36.1 $306.8 $96.8 $(18.1)$385.5 
Gross margin64.6 %68.4 %65.0 %57.1 %60.1 %
Operating income$76.3 $71.3 $(51.4)$96.2 
Operating margin16.2 %42.1 %15.0 %
Six Months Ended
 December 31, 2022January 1, 2022
Corporate reconciling items impacting gross profit:
Total segment gross profit$367.3 $403.6 
Stock-based compensation(2.4)(2.8)
Amortization of intangibles(12.8)(15.3)
Other charges unrelated to core operating performance (1)
(0.3)— 
GAAP gross profit$351.8 $385.5 
Corporate reconciling items impacting operating income:
Total segment operating income$113.4 $147.6 
Stock-based compensation(26.0)(26.9)
Amortization of intangibles(17.2)(20.6)
Change in fair value of contingent liability(1.8)(0.3)
Other benefits (charges) unrelated to core operating performance (1)
4.3 (3.7)
Restructuring and related benefits— 0.1 
GAAP operating income from continuing operations$72.7 $96.2 
(1)    During the six months ended December 31, 2022 and January 1, 2022, other benefits (charges) unrelated to core operating performance primarily consisted of certain acquisition and integration related charges, transformational initiatives such as site consolidations, reorganization, and loss on disposal of long-lived assets.
The Company operates primarily in three geographic regions: Americas, Asia-Pacific, and Europe, Middle East and Africa (EMEA). Net revenue is assigned to the geographic region and country where the Company’s product is initially shipped. For example, certain customers may request shipment of the Company’s product to a contract manufacturer in one country, which may differ from the location of their end customers. The following table presents net revenue by the three geographic regions in which the Company operates and net revenue from countries that exceeded 10% of the Company’s total net revenue for the three and six months ended December 31, 2022 and January 1, 2022 (in millions):
 Three Months Ended
 December 31, 2022January 1, 2022
Product RevenueService RevenueTotalProduct RevenueService RevenueTotal
Americas:
United States$77.5 $15.0 $92.5 $87.4 $12.8 $100.2 
Other Americas10.3 3.5 13.8 21.4 4.1 25.5 
Total Americas$87.8 $18.5 $106.3 $108.8 $16.9 $125.7 
Asia-Pacific:
Greater China$58.9 $1.8 $60.7 $54.4 $2.1 $56.5 
Other Asia-Pacific36.7 7.7 44.4 29.6 4.9 34.5 
Total Asia-Pacific$95.6 $9.5 $105.1 $84.0 $7.0 $91.0 
EMEA:
Switzerland$11.4 $0.1 $11.5 $11.6 $0.1 $11.7 
Other EMEA46.7 14.9 61.6 73.0 13.4 86.4 
Total EMEA$58.1 $15.0 $73.1 $84.6 $13.5 $98.1 
Total net revenue$241.5 $43.0 $284.5 $277.4 $37.4 $314.8 
 Six Months Ended
 December 31, 2022January 1, 2022
Product RevenueService RevenueTotalProduct RevenueService RevenueTotal
Americas:
United States$158.5 $30.6 $189.1 $167.3 $26.2 $193.5 
Other Americas33.4 6.8 40.2 46.4 7.3 53.7 
Total Americas$191.9 $37.4 $229.3 $213.7 $33.5 $247.2 
Asia-Pacific:
Greater China$122.4 $3.9 $126.3 $124.2 $4.9 $129.1 
Other Asia76.7 13.7 90.4 79.1 9.1 88.2 
Total Asia-Pacific$199.1 $17.6 $216.7 $203.3 $14.0 $217.3 
EMEA:
Switzerland$28.8 $0.2 $29.0 $24.7 $0.2 $24.9 
Other EMEA89.4 30.3 119.7 124.8 27.4 152.2 
Total EMEA$118.2 $30.5 $148.7 $149.5 $27.6 $177.1 
Total net revenue$509.2 $85.5 $594.7 $566.5 $75.1 $641.6