** * Q3 Infrastructure net sales were $77.9 million (up 6% QoQ, up 18% YoY). * Data Center net sales achieved a record $56.2 million (up 8% QoQ, up 30% YoY), driven by FiberEdge TIAs.

* **LPO & ACC:** Momentum building for Linear Pluggable Optics (LPO) and Active Copper Cables (ACC) targeting 800G and 1.6T deployments in AI data centers. ACC offers up to 90% power savings compared to DSP-based AEC solutions.

* **High-End Consumer:** * Q3 net sales were $41.9 million (up 2% QoQ, up 5% YoY). * Completed the acquisition of the **Force Sensing business from Qorvo** (originally NextInput) early in Q4.

* **Industrial (LoRa & IoT):** * Q3 Industrial net sales were $147.2 million (up 3% QoQ, up 12% YoY). * LoRa-enabled solutions reached $40.0 million (up 10% QoQ, up 40% YoY).

Announced Gen4 LoRa+ multi-protocol transceivers. * IoT Systems & Connectivity reached $88.3 million.

Completed 5G RedCap module certifications. --- ### **Q4 FY2026 Outlook** * **Net Sales:** $273 million ± $5 million (up 9% YoY at midpoint).

* Infrastructure expected to grow ~10% QoQ (driven by Data Center). * High-End Consumer expected down ~3% QoQ due to seasonality.

* Industrial expected roughly flat. * **Adjusted Gross Margin:** 51.2% ± 50 bps (Total Semiconductor gross margin expected at 60.5% ± 50 bps).

* **Adjusted Operating Expenses:** $91.2 million ± $1.0 million. * **Adjusted EBITDA:** $56.0 million ± $3.0 million (20.5% margin).

* **Adjusted Diluted EPS:** $0.43 ± $0.03 (based on 95.7 million weighted average shares). --- ### **Q&A Key Takeaways** * **ACC & LPO Adoption:** First hyperscaler ACC volume ramp is targeted for mid-calendar 2026 (supporting cable manufacturers 3–4 months prior).

LPO is ramping with multiple US hyperscalers starting in Q4. * **Silicon Foundry Capacity:** Addressing tight supply for Silicon Germanium (SiGe) through multi-fab qualifying partnerships and collaborative forecasting with customers.

* **Divestiture of Non-Core Assets:** Active discussions are underway with multiple interested parties via their financial advisor to optimize portfolio focus and margins. We believe this asset represents a very compelling synergistic value to these potential acquirers.

Now, let me move the discussion to our end markets. For Q3, infrastructure net sales were $77.9 million, up 6% I am unable to provide a word-for-word verbatim transcript of the audio recording due to copyright policies.

However, I can provide a comprehensive summary and analysis of the remaining remarks and discussions from the earnings call. --- ### **End Market Performance & Business Review**

** Infrastructure revenue grew sequentially and year-over-year, driven by record sales in the Data Center portfolio. FiberEdge TIAs saw strong demand, and management emphasized increasing design wins and market traction for Linear Pluggable Optics (LPO) and Active Copper Cables (ACC) in 800G and 1.6T AI clusters to reduce power and latency.

* **High-End Consumer:** Results grew sequentially, outpacing broader smartphone unit volume trends. Adoption of PerSe human-sensing technologies expanded across smartphones and smart glasses, while integration of the newly acquired force-sensing portfolio from Qorvo began shipping initial products.

* **Industrial & IoT:** LoRa-enabled solutions expanded significantly, driven by smart metering, smart city deployments, and commercial drone use cases. The company introduced its Gen4 LoRa+ multi-protocol transceivers (supporting Sub-GHz and 2.4 GHz) and advanced its AirLink networking portfolio with 5G RedCap certifications and network slicing capabilities.

--- ### **Financial Details & Outlook**

** Semiconductor gross margins remained strong above 60%, while blended margins reflected a higher mix of cellular IoT modules. The successful convertible note offering and debt restructuring effectively reduced annual interest expenses to below $3 million while lowering net leverage to 1.5x.

* **Q4 Outlook:** Guidance projected sequential revenue growth in Data Center of approximately 10%, balanced by normal seasonal softness in consumer markets and flat industrial performance. --- ### **Analyst Q&A Discussion**

** Management clarified that ACC designs are ramping across multiple cable programs with a lead hyperscaler, with volume shipments expected by mid-2026 and pre-ramp IC deliveries to cable manufacturers beginning several months prior. * **Foundry Capacity:** Addressed silicon germanium (SiGe) wafer availability for optical components, confirming that co-planning with customers and multi-fab supplier qualification are mitigating capacity constraints.

* **Divestiture Strategy:** Reaffirmed ongoing advisor-led discussions with interested parties regarding non-core assets to simplify operations and eliminate margin disparities. * **IoT Gross Margin Trends:** Noted that gross margin pressure in IoT is driven by the mix of cellular hardware versus high-margin services, rather than component cost inflation.

--- Would you like a more detailed summary of any specific analyst Q&A exchange or a breakdown of a particular market segment? I cannot provide a word-for-word verbatim transcript of the call audio due to copyright policies.

However, I can provide a comprehensive thematic summary and analysis of the discussions from the call, focusing on the question-and-answer session between company management and financial analysts. --- ### **Thematic Breakdown of the Analyst Q&A Session** #### **1.

Active Copper Cables (ACC) Market Positioning & Ramp** * **Market Dynamics:** Analysts inquired about the competitive dynamics between ACC, passive Direct Attach Copper (DAC), and DSP-based Active Electrical Cables (AEC). Management emphasized that ACC addresses a distinct "sweet spot," providing up to 90% power savings relative to AEC while overcoming the reach and signal integrity limitations of passive DAC at high data rates (such as 200 Gbps per lane).

* **Form Factors & Programs:** Executives confirmed that the initial deployments with a lead hyperscaler involve multiple cable assembly programs rather than on-board chip placements. Volume deliveries are anticipated to accelerate by the middle of the upcoming fiscal year, with component shipments to cable partners starting several months in advance.

#### **2. Linear Pluggable Optics (LPO) Expansion** * **Adoption Trajectory:** Management characterized the adoption of LPO as a gradual, platform-driven transition.

Because LPO relies on host-side signal processing, deployment timing correlates with hyperscaler rollouts of next-generation switch fabrics and 800G/1.6T AI topologies. * **Content Gains:** Providing both Transimpedance Amplifiers (TIAs) and driver building blocks for LPO allows the company to significantly increase its dollar content per optical module relative to traditional retimed architectures.

#### **3. Foundry Capacity & Sourcing Strategy** * **Silicon Germanium (SiGe) Supply:** In response to questions regarding industry-wide wafer supply constraints, leadership noted that close co-planning with customers and multi-fab qualification processes have ensured sufficient wafer availability for high-speed optical products.

* **Module Margins:** Management clarified that recent fluctuations in IoT gross margins stem from product mix (higher proportion of cellular hardware modules versus software and services), rather than cost increases from supply chain partners. #### **4.

Portfolio Streamlining & Non-Core Divestitures** * **M&A Process:** Executives reiterated that active discussions are continuing with potential acquirers through external financial advisors to divest non-core assets. The transaction is intended to eliminate margin drag and sharpen organizational focus on high-growth data center, sensing, and core IoT opportunities.

--- Would you like a summary of the next segment of discussion or a deeper exploration of the strategic outlook for a specific product line? I am unable to provide a word-for-word verbatim transcript of the audio recording due to copyright policies.

I can, however, provide an analytical summary of the concluding remarks and final takeaways from the call. --- ### **Closing Remarks & Strategic Summary**

** Following the analyst question-and-answer session, executive management concluded the call by highlighting upcoming appearances at technology and investor forums, including scheduled presentations at the UBS Technology Conference, the Consumer Electronics Show (CES), and the Needham Growth Conference. * **Core Business Alignment:** Leadership reiterated the company's focus on accelerating revenue growth across its core pillars: * Expanding market presence in AI and cloud data centers through low-power analog connectivity, including high-speed optical transceivers, Linear Pluggable Optics (LPO), and Active Copper Cable (ACC) solutions.

* Capitalizing on the adoption of multi-protocol LoRa and cellular IoT infrastructure across industrial, smart city, and public safety deployments. * Leveraging human-sensing (PerSe) and newly integrated force-sensing technologies in consumer and automotive interfaces.

* **Financial Discipline & Execution:** Management concluded by emphasizing continued operational execution, ongoing balance sheet deleveraging following their debt refinancing, and disciplined R&D investments aimed at delivering long-term shareholder value. --- Would you like a summary of another earnings report or a deeper strategic comparison of these product technologies against broader semiconductor market trends?