XML 62 R45.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Operating Segments and Geographic Information (Tables) | 6 Months Ended
--- | ---
Dec. 30, 2023
Segment Reporting [Abstract] |
Schedule of Information on Reportable Segments | The following tables present information on the Company’s reportable segments for the three months ended December 30, 2023 and December 31, 2022 (in millions):
| Three Months Ended December 30, 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 | $ | 125.2 |  |  | $ | 10.8 |  |  | $ | 136.0 |  |  | $ | 74.9 |  |  |  |  | $ | — |  |  | $ | 210.9 |
Service revenue | 30.3 |  |  | 13.3 |  |  | 43.6 |  |  | — |  |  |  |  | — |  |  | 43.6 |
Net revenue | $ | 155.5 |  |  | $ | 24.1 |  |  | $ | 179.6 |  |  | $ | 74.9 |  |  |  |  | $ | — |  |  | $ | 254.5 |
Gross profit | $ | 97.2 |  |  | $ | 16.6 |  |  | $ | 113.8 |  |  | $ | 39.0 |  |  |  |  | $ | (4.8) |  |  | $ | 148.0 |
Gross margin | 62.5 | % |  | 68.9 | % |  | 63.4 | % |  | 52.1 | % |  |  |  |  |  | 58.2 | %
Operating income |  |  |  |  | $ | 6.4 |  |  | $ | 27.3 |  |  |  |  | $ | (11.3) |  |  | $ | 22.4 |
Operating margin |  |  |  |  | 3.6 | % |  | 36.4 | % |  |  |  |  |  | 8.8 | %
| Three Months Ended December 31, 2022
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement (2) |  | Service Enablement (2) |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items (1) |  | Consolidated GAAP Measures
Product revenue (2) | $ | 152.6 |  |  | $ | 11.5 |  |  | $ | 164.1 |  |  | $ | 77.4 |  |  |  |  | $ | — |  |  | $ | 241.5 |
Service revenue (2) | 30.7 |  |  | 12.3 |  |  | 43.0 |  |  | — |  |  |  |  | — |  |  | 43.0 |
Net revenue | $ | 183.3 |  |  | $ | 23.8 |  |  | $ | 207.1 |  |  | $ | 77.4 |  |  |  |  | $ | — |  |  | $ | 284.5 |
Gross profit | $ | 118.1 |  |  | $ | 15.3 |  |  | $ | 133.4 |  |  | $ | 40.5 |  |  |  |  | $ | (6.9) |  |  | $ | 167.0 |
Gross margin | 64.4 | % |  | 64.3 | % |  | 64.4 | % |  | 52.3 | % |  |  |  |  |  | 58.7 | %
Operating income |  |  |  |  | $ | 18.5 |  |  | $ | 27.5 |  |  |  |  | $ | (23.1) |  |  | $ | 22.9 |
Operating margin |  |  |  |  | 8.9 | % |  | 35.5 | % |  |  |  |  |  | 8.0 | %
(1)Other items include charges (benefits) unrelated to core operating performance primarily consisting of stock-based compensation, amortization of acquisition-related intangibles, restructuring, changes in fair value of contingent consideration liabilities and other charges unrelated to core operating performance. (2)Effective for the first quarter of fiscal 2024, management of certain products moved from the SE segment to the NE segment to better align with operational and go-to-market strategies. As a result, prior period balances have been recast to reflect the impact to net revenue, gross profit and gross margin.
| Three Months Ended
| December 30, 2023 |  | December 31, 2022
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 152.8 |  |  | $ | 173.9 |
Stock-based compensation | (1.2) |  |  | (1.2) |
Amortization of intangibles | (3.4) |  |  | (5.7) |
Other charges unrelated to core operating performance (1) | (0.2) |  |  | — |
GAAP gross profit | $ | 148.0 |  |  | $ | 167.0 |
Corporate reconciling items impacting operating income: |  |  |
Total segment operating income | $ | 33.7 |  |  | $ | 46.0 |
Stock-based compensation | (12.5) |  |  | (13.0) |
Amortization of intangibles | (4.8) |  |  | (7.9) |
Change in fair value of contingent liability | 7.0 |  |  | (1.3) |
Other charges unrelated to core operating performance (1) | (1.1) |  |  | (0.9) |
Restructuring and related benefits | 0.1 |  |  | — |
GAAP operating income from continuing operations | $ | 22.4 |  |  | $ | 22.9 |
(1) During the three months ended December 30, 2023 and December 31, 2022, other charges unrelated to core operating performance primarily consisting of certain acquisition and integration related charges, accretion of debt discount and loss on disposal of long-lived assets.
| Six Months Ended December 30, 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 | $ | 245.6 |  |  | $ | 18.5 |  |  | $ | 264.1 |  |  | $ | 152.4 |  |  |  |  | $ | — |  |  | $ | 416.5 |
Service revenue | 59.9 |  |  | 26.0 |  |  | 85.9 |  |  | — |  |  |  |  | — |  |  | 85.9 |
Net revenue | $ | 305.5 |  |  | $ | 44.5 |  |  | $ | 350.0 |  |  | $ | 152.4 |  |  |  |  | $ | — |  |  | $ | 502.4 |
Gross profit | $ | 191.8 |  |  | $ | 30.3 |  |  | $ | 222.1 |  |  | $ | 79.7 |  |  |  |  | $ | (9.4) |  |  | $ | 292.4 |
Gross margin | 62.8 | % |  | 68.1 | % |  | 63.5 | % |  | 52.3 | % |  |  |  |  |  | 58.2 | %
Operating income |  |  |  |  | $ | 7.9 |  |  | $ | 56.6 |  |  |  |  | $ | (26.1) |  |  | $ | 38.4 |
Operating margin |  |  |  |  | 2.3 | % |  | 37.1 | % |  |  |  |  |  | 7.6 | %
| Six Months Ended December 31, 2022
| Network and Service Enablement |  |  |  |  |  |  |  |  |  |
| Network Enablement (2) |  | Service Enablement (2) |  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Other Items (1) |  | Consolidated GAAP Measures
Product revenue (2) | $ | 318.9 |  |  | $ | 21.7 |  |  | $ | 340.6 |  |  | $ | 168.6 |  |  |  |  | $ | — |  |  | $ | 509.2 |
Service revenue (2) | 60.9 |  |  | 24.5 |  |  | 85.4 |  |  | 0.1 |  |  |  |  | — |  |  | 85.5 |
Net revenue | $ | 379.8 |  |  | $ | 46.2 |  |  | $ | 426.0 |  |  | $ | 168.7 |  |  |  |  | $ | — |  |  | $ | 594.7 |
Gross profit | $ | 244.9 |  |  | $ | 30.1 |  |  | $ | 275.0 |  |  | $ | 92.3 |  |  |  |  | $ | (15.5) |  |  | $ | 351.8 |
Gross margin | 64.5 | % |  | 65.2 | % |  | 64.6 | % |  | 54.7 | % |  |  |  |  |  | 59.2 | %
Operating income |  |  |  |  | $ | 47.3 |  |  | $ | 66.1 |  |  |  |  | $ | (40.7) |  |  | $ | 72.7 |
Operating margin |  |  |  |  | 11.1 | % |  | 39.2 | % |  |  |  |  |  | 12.2 | %
(1)Other items include charges (benefits) unrelated to core operating performance primarily consisting of stock-based compensation, amortization of acquisition-related intangibles, restructuring, changes in fair value of contingent consideration liabilities and other charges unrelated to core operating performance. (2)Effective for the first quarter of fiscal 2024, management of certain products moved from the SE segment to the NE segment to better align with operational and go-to-market strategies. As a result, prior period balances have been recast to reflect the impact to net revenue, gross profit and gross margin.
| Six Months Ended
| December 30, 2023 |  | December 31, 2022
Corporate reconciling items impacting gross profit: |  |  |
Total segment gross profit | $ | 301.8 |  |  | $ | 367.3 |
Stock-based compensation | (2.4) |  |  | (2.4) |
Amortization of intangibles | (6.9) |  |  | (12.8) |
Other charges unrelated to core operating performance (1) | (0.1) |  |  | (0.3) |
GAAP gross profit | $ | 292.4 |  |  | $ | 351.8 |
Corporate reconciling items impacting operating income: |  |  |
Total segment operating income | $ | 64.5 |  |  | $ | 113.4 |
Stock-based compensation | (23.7) |  |  | (26.0) |
Amortization of intangibles | (10.4) |  |  | (17.2) |
Change in fair value of contingent liability | 8.4 |  |  | (1.8) |
Other (charges) benefits unrelated to core operating performance (1) | (1.3) |  |  | 4.3 |
Restructuring and related benefits | 0.9 |  |  | — |
GAAP operating income from continuing operations | $ | 38.4 |  |  | $ | 72.7 |
(1) During the six months ended December 30, 2023 and December 31, 2022, other (charges) benefits unrelated to core operating performance primarily consisting of certain acquisition and integration related charges, legal settlement, accretion of debt discount and losses on disposal of 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 three and six months ended December 30, 2023 and December 31, 2022 (in millions):
| Three Months Ended
| December 30, 2023 |  | December 31, 2022
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 68.6 |  |  | $ | 16.1 |  |  | $ | 84.7 |  |  | $ | 77.5 |  |  | $ | 15.0 |  |  | $ | 92.5 |
Other Americas | 14.6 |  |  | 3.8 |  |  | 18.4 |  |  | 10.3 |  |  | 3.5 |  |  | 13.8 |
Total Americas | $ | 83.2 |  |  | $ | 19.9 |  |  | $ | 103.1 |  |  | $ | 87.8 |  |  | $ | 18.5 |  |  | $ | 106.3 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 45.9 |  |  | $ | 1.5 |  |  | $ | 47.4 |  |  | $ | 58.9 |  |  | $ | 1.8 |  |  | $ | 60.7 |
Other Asia-Pacific | 24.9 |  |  | 7.2 |  |  | 32.1 |  |  | 36.7 |  |  | 7.7 |  |  | 44.4 |
Total Asia-Pacific | $ | 70.8 |  |  | $ | 8.7 |  |  | $ | 79.5 |  |  | $ | 95.6 |  |  | $ | 9.5 |  |  | $ | 105.1 |
EMEA: | $ | 56.9 |  |  | $ | 15.0 |  |  | $ | 71.9 |  |  | $ | 58.1 |  |  | $ | 15.0 |  |  | $ | 73.1 |
Total net revenue | $ | 210.9 |  |  | $ | 43.6 |  |  | $ | 254.5 |  |  | $ | 241.5 |  |  | $ | 43.0 |  |  | $ | 284.5 |
| Six Months Ended
| December 30, 2023 |  | December 31, 2022
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 136.2 |  |  | $ | 31.3 |  |  | $ | 167.5 |  |  | $ | 158.5 |  |  | $ | 30.6 |  |  | $ | 189.1 |
Other Americas | 28.3 |  |  | 7.8 |  |  | 36.1 |  |  | 33.4 |  |  | 6.8 |  |  | 40.2 |
Total Americas | $ | 164.5 |  |  | $ | 39.1 |  |  | $ | 203.6 |  |  | $ | 191.9 |  |  | $ | 37.4 |  |  | $ | 229.3 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 95.3 |  |  | $ | 3.2 |  |  | $ | 98.5 |  |  | $ | 122.4 |  |  | $ | 3.9 |  |  | $ | 126.3 |
Other Asia | 53.2 |  |  | 13.7 |  |  | 66.9 |  |  | 76.7 |  |  | 13.7 |  |  | 90.4 |
Total Asia-Pacific | $ | 148.5 |  |  | $ | 16.9 |  |  | $ | 165.4 |  |  | $ | 199.1 |  |  | $ | 17.6 |  |  | $ | 216.7 |
EMEA: | $ | 103.5 |  |  | $ | 29.9 |  |  | $ | 133.4 |  |  | $ | 118.2 |  |  | $ | 30.5 |  |  | $ | 148.7 |
Total net revenue | $ | 416.5 |  |  | $ | 85.9 |  |  | $ | 502.4 |  |  | $ | 509.2 |  |  | $ | 85.5 |  |  | $ | 594.7 |

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration