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Operating Segments and Geographic Information (Tables) | 12 Months Ended
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Jun. 29, 2024
Segment Reporting [Abstract] |
Schedule of Information on Reportable Segments | Information on the Company’s reportable segments is as follows (in millions):
| Year Ended June 29, 2024
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items(1) |  | Consolidated GAAP Measures
Product revenue | $ | 499.1 |  |  | $ | 37.3 |  |  | $ | 536.4 |  |  | $ | 298.4 |  |  |  |  | $ | — |  |  | $ | 834.8 |
Service revenue | 116.6 |  |  | 49.0 |  |  | 165.6 |  |  | — |  |  |  |  | — |  |  | 165.6 |
Net revenue | $ | 615.7 |  |  | $ | 86.3 |  |  | $ | 702.0 |  |  | $ | 298.4 |  |  |  |  | $ | — |  |  | $ | 1,000.4 |
Gross profit | $ | 382.3 |  |  | $ | 57.3 |  |  | $ | 439.6 |  |  | $ | 154.9 |  |  |  |  | $ | (18.6) |  |  | $ | 575.9 |
Gross margin | 62.1 | % |  | 66.4 | % |  | 62.6 | % |  | 51.9 | % |  |  |  |  |  | 57.6 | %
Operating income |  |  |  |  | $ | 8.0 |  |  | $ | 107.0 |  |  |  |  | $ | (94.2) |  |  | $ | 20.8 |
Operating margin |  |  |  |  | 1.1 | % |  | 35.9 | % |  |  |  |  |  | 2.1 | %
| Year Ended July 1, 2023
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items(1) |  | Consolidated GAAP Measures
Product revenue | $ | 588.1 |  |  | $ | 43.2 |  |  | $ | 631.3 |  |  | $ | 304.8 |  |  |  |  | $ | — |  |  | $ | 936.1 |
Service revenue | 119.1 |  |  | 50.8 |  |  | 169.9 |  |  | 0.1 |  |  |  |  | — |  |  | 170.0 |
Net revenue | $ | 707.2 |  |  | $ | 94.0 |  |  | $ | 801.2 |  |  | $ | 304.9 |  |  |  |  | $ | — |  |  | $ | 1,106.1 |
Gross profit | $ | 447.6 |  |  | $ | 62.6 |  |  | $ | 510.2 |  |  | $ | 158.6 |  |  |  |  | $ | (30.0) |  |  | $ | 638.8 |
Gross margin | 63.3 | % |  | 66.6 | % |  | 63.7 | % |  | 52.0 | % |  |  |  |  |  | 57.8 | %
Operating income |  |  |  |  | $ | 61.2 |  |  | $ | 111.3 |  |  |  |  | $ | (90.1) |  |  | $ | 82.4 |
Operating margin |  |  |  |  | 7.6 | % |  | 36.5 | % |  |  |  |  |  | 7.4 | %
| Year Ended July 2, 2022
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement |  | Service Enablement |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items(1) |  | Consolidated GAAP Measures
Product revenue | $ | 745.1 |  |  | $ | 47.6 |  |  | $ | 792.7 |  |  | $ | 342.8 |  |  |  |  | $ | — |  |  | $ | 1,135.5 |
Service revenue | 110.6 |  |  | 45.8 |  |  | 156.4 |  |  | 0.5 |  |  |  |  | — |  |  | 156.9 |
Net revenue | $ | 855.7 |  |  | $ | 93.4 |  |  | $ | 949.1 |  |  | $ | 343.3 |  |  |  |  | $ | — |  |  | $ | 1,292.4 |
Gross profit | $ | 550.8 |  |  | $ | 64.3 |  |  | $ | 615.1 |  |  | $ | 193.6 |  |  |  |  | $ | (35.2) |  |  | $ | 773.5 |
Gross margin | 64.4 | % |  | 68.8 | % |  | 64.8 | % |  | 56.4 | % |  |  |  |  |  | 59.8 | %
Operating income |  |  |  |  | $ | 147.8 |  |  | $ | 139.0 |  |  |  |  | $ | (101.8) |  |  | $ | 185.0 |
Operating margin |  |  |  |  | 15.6 | % |  | 40.5 | % |  |  |  |  |  | 14.3 | %
(1) See below tables for details of reconciling items impacting gross profit and operating income.
| Years Ended
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022
Corporate reconciling items impacting gross profit: |  |  |  |  |
Total segment gross profit | $ | 594.5 |  |  | $ | 668.8 |  |  | $ | 808.7 |
Stock-based compensation | (4.9) |  |  | (4.8) |  |  | (5.2) |
Amortization of intangibles | (13.8) |  |  | (24.6) |  |  | (30.0) |
Other benefits (charges) unrelated to core operating performance(1) | 0.1 |  |  | (0.6) |  |  | — |
Total reconciling items | (18.6) |  |  | (30.0) |  |  | (35.2) |
GAAP gross profit | $ | 575.9 |  |  | $ | 638.8 |  |  | $ | 773.5 |
Corporate reconciling items impacting operating income: |  |  |  |  |
Total segment operating income | $ | 115.0 |  |  | $ | 172.5 |  |  | $ | 286.8 |
Stock-based compensation | (49.4) |  |  | (51.2) |  |  | (52.3) |
Amortization of intangibles | (20.1) |  |  | (33.3) |  |  | (39.7) |
Change in fair value of contingent liability | 9.5 |  |  | 4.6 |  |  | (0.3) |
Other (charges) benefits unrelated to core operating performance(1) | (20.6) |  |  | 1.9 |  |  | (9.6) |
Restructuring and related (charges) benefits | (13.6) |  |  | (12.1) |  |  | 0.1 |
Total reconciling items | (94.2) |  |  | (90.1) |  |  | (101.8) |
GAAP operating income | $ | 20.8 |  |  | $ | 82.4 |  |  | $ | 185.0 |
(1) For the year ended June 29, 2024, Other charges (benefits) unrelated to core operating performance consisted of $18.1 million of certain acquisition and integration related charges and $2.5 million of net losses primarily related to long-lived assets. For the year ended July 1, 2023, Other charges (benefits) unrelated to core operating performance consisted of a $6.7 million gain on litigation settlement, offset by $2.5 million of certain acquisition and integration related charges and $2.3 million of net losses primarily related to long-lived assets. For the year ended July 2, 2022, Other charges (benefits) unrelated to core operating performance consisted of $5.1 million of certain acquisition and integration related charges and $4.5 million of net losses primarily related to long-lived assets. 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 years ended June 29, 2024, July 1, 2023 and July 2, 2022 (in millions):
| Years Ended
| June 29, 2024 |  | July 1, 2023 |  | July 2, 2022
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 265.0 |  |  | $ | 60.4 |  |  | $ | 325.4 |  |  | $ | 303.5 |  |  | $ | 59.4 |  |  | $ | 362.9 |  |  | $ | 332.5 |  |  | $ | 56.4 |  |  | $ | 388.9 |
Other Americas | 50.3 |  |  | 15.0 |  |  | 65.3 |  |  | 60.3 |  |  | 14.9 |  |  | 75.2 |  |  | 82.2 |  |  | 14.6 |  |  | 96.8 |
Total Americas | $ | 315.3 |  |  | $ | 75.4 |  |  | $ | 390.7 |  |  | $ | 363.8 |  |  | $ | 74.3 |  |  | $ | 438.1 |  |  | $ | 414.7 |  |  | $ | 71.0 |  |  | $ | 485.7 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 188.1 |  |  | $ | 5.9 |  |  | $ | 194.0 |  |  | $ | 203.5 |  |  | $ | 7.4 |  |  | $ | 210.9 |  |  | $ | 247.5 |  |  | $ | 8.9 |  |  | $ | 256.4 |
Other Asia | 126.5 |  |  | 26.0 |  |  | 152.5 |  |  | 140.2 |  |  | 26.4 |  |  | 166.6 |  |  | 185.2 |  |  | 20.1 |  |  | 205.3 |
Total Asia-Pacific | $ | 314.6 |  |  | $ | 31.9 |  |  | $ | 346.5 |  |  | $ | 343.7 |  |  | $ | 33.8 |  |  | $ | 377.5 |  |  | $ | 432.7 |  |  | $ | 29.0 |  |  | $ | 461.7 |
EMEA: | $ | 204.9 |  |  | $ | 58.3 |  |  | $ | 263.2 |  |  | $ | 228.6 |  |  | $ | 61.9 |  |  | $ | 290.5 |  |  | $ | 288.1 |  |  | $ | 56.9 |  |  | $ | 345.0 |
Total net revenue | $ | 834.8 |  |  | $ | 165.6 |  |  | $ | 1,000.4 |  |  | $ | 936.1 |  |  | $ | 170.0 |  |  | $ | 1,106.1 |  |  | $ | 1,135.5 |  |  | $ | 156.9 |  |  | $ | 1,292.4 |
One customer of the Company generated $154.1 million, $157.7 million and $178.4 million of net revenue, which represented more than 10% of total net revenue, during fiscal 2024, 2023 and 2022, respectively. Property, plant and equipment, net was identified based on the operations in the corresponding geographic areas (in millions):
| Years Ended
| June 29, 2024 |  | July 1, 2023
United States | $ | 165.0 |  |  | $ | 166.9 |
Other Americas | 1.1 |  |  | 1.3 |
China | 24.1 |  |  | 33.6 |
Other Asia-Pacific | 5.1 |  |  | 4.0 |
United Kingdom | 20.3 |  |  | 24.6 |
Other EMEA | 12.6 |  |  | 12.6 |
Total property, plant and equipment, net | $ | 228.2 |  |  | $ | 243.0 |

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