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Operating Segments and Geographic Information | 3 Months Ended
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Sep. 27, 2025
Segment Reporting [Abstract] |
Operating Segments and Geographic Information | Note 19. Operating Segments and Geographic Information The Company evaluates its operating 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 operating and reportable segments are: (i) Network and Service Enablement (NSE): NSE provides an integrated portfolio of testing, monitoring, assurance and security solutions to help build, maintain, and optimize telecom and datacom networks. Our solutions address lab and production environments, network management, service assurance and AIOps for any kind of network, including wireless, wireline, cloud, satellite, public safety, military and critical infrastructure. NSE also offers a range of product support and professional services such as repair, calibration, software support and technical assistance for its products. (ii) Optical Security and Performance Products (OSP): OSP leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell technologies for the anti-counterfeiting, 3D sensing, government and aerospace, automotive and industrial markets. Segment Reporting The CODM manages the Company in two broad business categories: NSE and OSP. The CODM evaluates segment performance of the NSE and OSP business based on segment operating margins. The CODM uses segment operating margin to make budgeting and forecasting decisions and to assess the performance of our segments, primarily by monitoring actual results versus the prior year, the annual budget and forecasted results. In addition, the CODM reviews inventory levels by segment. 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 and integrated related charges, amortization of acquisition related intangibles, amortization of acquisition related inventory step-up, legal settlements, restructuring, changes in fair value of contingent consideration liabilities, non-operating income and expenses, 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 “Unallocated other expenses” 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 September 27, 2025 and September 28, 2024 (in millions):
|  | Three Months Ended September 27, 2025
|  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Total
Product revenue |  | $ | 174.3 |  |  | $ | 83.1 |  |  |  |  | $ | 257.4 |
Service revenue |  | 41.7 |  |  | — |  |  |  |  | 41.7 |
Net revenue |  | 216.0 |  |  | $ | 83.1 |  |  |  |  | $ | 299.1 |
Cost of revenues |  | 79.9 |  |  | 39.6 |  |  |  |  |
Research and development |  | 48.9 |  |  | 3.9 |  |  |  |  |
Selling, general and administrative |  | 43.5 |  |  | 6.2 |  |  |  |  |
Other segment items(1) |  | 27.4 |  |  | 2.6 |  |  |  |  |
Total operating expense |  | 119.8 |  |  | 12.7 |  |  |  |  |
Segment operating income |  | $ | 16.3 |  |  | $ | 30.8 |  |  |  |  | $ | 47.1 |
Segment operating margin |  | 7.5 | % |  | 37.1 | % |  |  |  |
Unallocated other expenses |  |  |  |  |  |  |  | (39.5) |
Loss on convertible note extinguishment |  |  |  |  |  |  |  | (3.8) |
Interest and other income, net |  |  |  |  |  |  |  | 1.3 |
Interest expense |  |  |  |  |  |  |  | (7.4) |
Loss before income taxes and equity investment losses |  |  |  |  |  |  |  | $ | (2.3) |
Inventories, net |  | $ | 82.0 |  |  | $ | 42.5 |  |  |  |  | $ | 124.5 |
Assets not allocated to segments |  |  |  |  |  |  |  | 1,957.6 |
Total assets |  |  |  |  |  |  |  | $ | 2,082.1 |
|  | Three Months Ended September 28, 2024
|  | Network and Service Enablement |  | Optical Security and Performance Products |  |  |  | Total
Product revenue |  | $ | 118.7 |  |  | $ | 78.8 |  |  |  |  | $ | 197.5 |
Service revenue |  | 40.7 |  |  | — |  |  |  |  | 40.7 |
Net revenue |  | $ | 159.4 |  |  | $ | 78.8 |  |  |  |  | $ | 238.2 |
Cost of revenues |  | 62.3 |  |  | 35.2 |  |  |  |  |
Research and development |  | 42.1 |  |  | 4.7 |  |  |  |  |
Selling, general and administrative |  | 37.4 |  |  | 5.6 |  |  |  |  |
Other segment items(1) |  | 24.9 |  |  | 2.1 |  |  |  |  |
Total operating expense |  | 104.4 |  |  | 12.4 |  |  |  |  |
Segment operating (loss) income |  | $ | (7.3) |  |  | $ | 31.2 |  |  |  |  | $ | 23.9 |
Segment operating margin |  | (4.6) | % |  | 39.6 | % |  |  |  |
Unallocated other expenses |  |  |  |  |  |  |  | (12.4) |
Interest and other income, net |  |  |  |  |  |  |  | 3.2 |
Interest expense |  |  |  |  |  |  |  | (7.5) |
Income before income taxes and equity investment losses |  |  |  |  |  |  |  | $ | 7.2 |
Inventories, net |  | $ | 49.2 |  |  | $ | 44.0 |  |  |  |  | $ | 93.2 |
Assets not allocated to segments |  |  |  |  |  |  |  | 1,644.4 |
Total assets |  |  |  |  |  |  |  | $ | 1,737.6 |
(1)Other segment items represents allocation of corporate level operating expenses. 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 months ended September 27, 2025 and September 28, 2024 (in millions):
| Three Months Ended
| September 27, 2025 |  | September 28, 2024
| Product Revenue |  | Service Revenue |  | Total |  | Product Revenue |  | Service Revenue |  | Total
Americas: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 91.9 |  |  | $ | 14.8 |  |  | $ | 106.7 |  |  | $ | 58.4 |  |  | $ | 14.6 |  |  | $ | 73.0 |
Other Americas | 18.1 |  |  | 4.0 |  |  | 22.1 |  |  | 11.7 |  |  | 4.0 |  |  | 15.7 |
Total Americas | $ | 110.0 |  |  | $ | 18.8 |  |  | $ | 128.8 |  |  | $ | 70.1 |  |  | $ | 18.6 |  |  | $ | 88.7 |
Asia-Pacific: |  |  |  |  |  |  |  |  |  |  |
Greater China | $ | 55.6 |  |  | $ | 0.9 |  |  | $ | 56.5 |  |  | $ | 52.6 |  |  | $ | 1.2 |  |  | $ | 53.8 |
Other Asia-Pacific | 30.2 |  |  | 5.4 |  |  | 35.6 |  |  | 26.2 |  |  | 5.9 |  |  | 32.1 |
Total Asia-Pacific | $ | 85.8 |  |  | $ | 6.3 |  |  | $ | 92.1 |  |  | $ | 78.8 |  |  | $ | 7.1 |  |  | $ | 85.9 |
EMEA: | $ | 61.6 |  |  | $ | 16.6 |  |  | $ | 78.2 |  |  | $ | 48.6 |  |  | $ | 15.0 |  |  | $ | 63.6 |
Total net revenue | $ | 257.4 |  |  | $ | 41.7 |  |  | $ | 299.1 |  |  | $ | 197.5 |  |  | $ | 40.7 |  |  | $ | 238.2 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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