Q3 2025 MACOM Technology Solutions Holdings Inc Earnings Call
Welcome to make third fiscal quarter 2025 conference call. This call is being recorded today. Thursday, August 7th, 2025 at this time. All participants are on a listen-only mode. I will now turn the call over to Mr. Brownie, may come vice president of corporate development and investigations Mr. Fante please, go ahead.
Thank you, Olivia. Good morning and welcome to our call today to discuss MACOM's financial results for the third fiscal quarter of 2025. I would like to remind everyone that our discussion today will include forward-looking statements, which are subject to certain risks and uncertainties as defined in the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Actual results May differ materially from those discussed today for a more detailed discussion of the risks and uncertainties that could result in those differences, we refer you to make homes filings with the SEC.
Management statements: During this call, we'll also include a discussion of certain adjusted non-GAAP financial information. A reconciliation of GAAP to adjusted non-GAAP results is provided in the company's press release and related Form 8-K, which was filed with the SEC today.
With that, I'll turn over the call to Steve Daly. President and CEO of M.
Thank you and good morning. I will begin today's call with the general company update after that. Jack cobber, our Chief Financial Officer will review our Q3 results for fiscal year 2025
When Jack is finished, I will provide revenue and earnings guidance for the fourth quarter and then we will be happy to take some questions.
revenue for the third quarter of fiscal 2025 was 20052.1 million in adjusted EPS was 90 cents per diluted share,
We had a strong quarter of cash generation in ended the quarter with approximately 735 million in cash and short-term Investments on our balance sheet.
Overall our team did an excellent job in meeting our business and financial objectives. This quarter revenues by End Market were as follows industrial and defense was 108.2. Million data center was 75.8 million and Telecom was 68.1 Million.
IND was up. 10% sequentially data. Center was up, 5% sequentially. And Telecom was up 4% sequentially.
Our in D and data center, quarterly revenues achieved record results.
Our Q3 booked to Bill ratio was just over 1.1 to 1.
As a result, our backlog remains at a record level.
Our turns business orders booked and shipped within the quarter was around, 17% of total revenue.
We believe our backlog growth is driven by our new products gaining market share as well as a positive. Secular Trends across our 3, major and markets,
our ability to provide competitive in leading solutions to our customers, is what drives our financial performance
As a result, we continue to focus on technology differentiation across all our product lines.
Simply put our strategy is to enable the highest power. Highest frequency in highest data rate applications within our 3 core markets, using proprietary semiconductor processes IC design techniques and packaged Technologies.
In addition over the past 6 years, our strategy has included strengthening our RF microwave in Optical systems engineering capabilities.
As a result, we are better able to engage customers early on system architecture discussions rather than offer point product solutions. After the schematics and block diagrams have been developed.
This approach when combined with the strength of our chip designers and Manufacturing capabilities allows us to have input on the system block diagram, which can translate into larger business opportunities and more cross-selling of products from our diverse portfolio.
Industrial and defense remains strong. And we continue to see opportunities in the US and European markets.
We support a wide range of applications, including military, space electronics, milcom on board, drone electronics, and directed energy anti-drone defense systems.
Frequency bands.
These Precision high frequency applications offer require high levels of integration and novel engineering Solutions.
Examples include components for radio and radar jamming. As well as Optical Electronics, using conjunction with microwave Electronics, to spoof radar systems,
These requirements within the defense electronic sector. Play into Ms. Strengths
Our industrial and multi Market product lines had modest improvements in in demand during the quarter.
Standard product sales are increasing across a wide range of low and medium volume applications.
Telecom orders. Remain solid specifically in 5G infrastructure Broadband access and Metro Long Haul.
While our lead 5G, customers expect limited growth in the global radio Access Network Market, our strategy is to gain market share with new designs that outperform the competition.
In support of this goal over the past 18 months, we have developed our next Generation high power, gain on silicon carbide, semiconductor process at our RTP Fab to support existing, and future 5G applications.
We call this process, Gan 4.
I am pleased to report products from the Gan 4 process, have been sampled to several of our major customers. And we have received very positive feedback on product performance.
We believe our GANOR process will make us more competitive in massive MIMO applications, which we are not currently addressing well.
Our Metro Long Haul in satcom businesses within the Telecom and Market continued to perform.
Expansion of high-speed data transmission, and increased ground to satellite, and satellite to satellite Communications. Our driving demand for our products, some of which operate at 130 gigabyte data rates, and up to 80 g in frequency,
And finally, our data center business continues to grow, driven by the global expansion of this market.
Demand remains solid for our high-performance connectivity. IC portfolio, supporting 800g and 1.6. T deployments
In fact, we believe we will have a record 200g per Lane product Revenue in Q4.
Additionally, we are seeing demand at the lower data rates, including 100g and 400g, supporting expansion, links and more traditional Data Center architectures.
As we look at our full year results, for the data center, we expect significant growth across. Almost all data rates and platforms. Even our Legacy 25g, nrz business is expected to grow year-over-year.
We are also pleased to report our data center. Product Revenue mix is expanding as 2, new product lines, enter production.
First, we recently transitioned our 200g perlane photo, diodes or photo detectors also known as PDS into high volume production.
We have a strong Market position with 200 g per Lane PDS. As macom is 1 of the few suppliers who can offer customers both the Tia and photo detector ic's. And we can offer a chip scale, stacked configuration with 4 PDS mounted on top of the Tia.
second, we have secured high volume production orders for a 100g per Lane, linear pluggable Optics or lpo chipsets
Our lpo customer is deploying an 800g Network and a medium reach application.
We believe this production order confirms that the market will continue to evaluate and adopt lpo, architectures, and roll out, lpo Solutions at scale.
Lpo is beginning to spread, which is good for AECOM.
our R&D product development and operational, execution, ramping the PD in the lpo products represent a major technical accomplishment by our teams,
We believe these 2 new product lines will support future Revenue growth.
Many investors ask us about our ACC or active copper Cable business and opportunities.
Internally, we refer to these products as linear equalizers.
As the data rates increase, We Believe passive connectivity will coexist or be replaced with Active Solutions.
Cables aecs.
Make on provides linear, equalizers and Tia, Tia plus driver chipset solutions, for ACC and AOC configurations.
We do not support aec's which are typically retimed DSP like Solutions.
We believe the trends to Electrify connectivity with Equalization will continue to expand inside and around the data center, as well, as in other applications, as an example, we see some connection protocol and the compute industry. Moving to higher data rates, and therefore away from passive connections to active electrical or Optical Solutions.
An example would be pcie 7 to connect disagreed gpus CPUs and memory together using high-speed connections.
Disagreed, Computing enables the efficient use of compute memory and storage resources, but it increases the need for fast, low latency connections.
Macom is addressing this high-volume application with existing infiniband and ethernet devices and developing ic's with pcie specific. Protocol features for plug-and-play, compatibility with existing cabling and multiple connector form factors.
We have developed pcie solutions for both single mode and multimode fiber applications.
And demonstrated these at recent offc and Eco conferences.
While mcom is focused on supporting current generation applications. We are also looking ahead at Future applications as an example at the last ofc we demonstrated a 300 gig per Lane, Pam, 6, driver, IC,
As we work on Advanced ic's like this, we Engage The with the industry leaders so we can properly understand future system requirements.
Another example of advanced work includes our active design efforts and product sampling on our 400G per lane products, which we anticipate will support revenues starting about two years from now.
During Q3 macom exhibited at the international microwave, Symposium, and San Francisco.
This exhibition is a great venue to highlight our latest microwave millimeter wave and Optical technology Innovations. And to introduce new product lines to our customers.
At this year's show, mayong featured 16 live technology demonstrations. Showcasing our newest products for electronic countermeasures. Radar and satcom applications
I want to highlight 3 noteworthy, new products.
First a 1 kilowatt xband pulse power amplifier, module developed for electronic countermeasures and directed energy applications. This is a great example of the type of high-value AD system level offerings that I mentioned earlier.
Second a wideband front-end module or Femme covering 2 to 18 gigahertz this multi-chip transmit. Receive module solution is ideal for wideband phased, array architectures.
And third, a new product solution for RF, over fiber applications. May's matte, 61m transmit, receive module offers up to 70 gigahertz of bandwidth, making it ideal for antenna. Remoting
The module provides a complete solution for transporting wide bandwidth, signals over optical fiber within a compact form factor.
I'll mention a few other noteworthy items.
Our RFP powered business continues to perform well with an attractive mix of defense and Commercial applications.
Supporting this activity is our wafer Fab located in RTP North Carolina.
On July 25th. This Fab came under maze full control.
Almost 6 months ahead of the original schedule.
We felt it was in our best interest to accelerate the transfer to remove risk given the sellers bankruptcy situation.
The Accelerated transfer will create a modest near-term. Gross margin setback, which Jack will review.
However, now that we have full control of the Fab we can intensify yield enhancement, efforts and optimize performance and operational metrics of the Fab.
We have recently executed a plan to increase Fab output capacity by up to 30% with the purchase of heavily discounted Fab equipment.
Our business development activities based out of M's, European semiconductor Center or mesk continues to gain momentum in the market.
We believe We Are Better able to penetrate the major European industrial defense, space and Telecom accounts with the design and Manufacturing site in France.
Our goal is be, our goal is to be the premier designer and manufacturer of high frequency and high power, gas and Gan IC semiconductors in Europe and I'm confident our talented team in France can make this happen.
And last our 6 business units, continue to engage customers on significant programs at the IC module, and subsystem level, in all 3 of our Target markets.
We continue to strategically expand our Workforce with industry-leading talent to meet the challenge to be first to Market, with best-in-class performance.
Jack will now provide a more detailed review of our financial results.
Thanks Steve. Our Q3 results are at a record Revenue level with strong financial performance.
Continuing our steady growth in Revenue, increased operating income and ongoing cash generation.
We have made sustained, operational improvements across the business, which have supported our strong balance sheet, and cash generation.
Fiscal. Q3 Revenue was a new quarterly record of 252.1 million up 6.9% sequentially based on growth growth across all 3 of our end markets.
For overall book to Bill ratio for Q3 was just above 1 to 1.
Adjusted gross profit for fiscal, Q3 was 145.2 million or 57.6% of Revenue.
Slightly ahead of Prior quarters.
As Steve had mentioned, we are pleased to have assumed operational control of the RTP North Carolina Fab on July 25th.
Ahead of the original scheduled December transfer date.
While we anticipate that the acceleration of this transfer will result in some minor near-term. Gross margin dilution of approximately 60 basis points or about 1.5 million in Q4.
We are excited to have eliminated the business risks of not having the important facility under our operational control.
With the facility. Now under May's control, we believe we will be able to increase the speed of improvements to the Fabs production capacity and yields, which will help to stabilize and improve the Fabs performance. As we enter fiscal year 2026,
Total adjusted operating expense. For our second quarter was 81.7 Million, consisting of research and development, expense of 55.1 million, and selling General and administrative expenses of 26.6 million.
The anticipated sequential increase in adjusted operating expenses compared to Q2 with primarily driven by higher R&D, associated with employee related, costs and Foundry expenses as well as higher variable compensation.
As we are scaling the business, we have added new capabilities and resources, primarily within R&D functions.
I would like to note that we have remained very focused on controlling our Opex, as we continue to grow our Revenue.
Depreciation expense for fiscal Q3, 2025 was 6.9 million compared to 6.8 million in Q2 2025.
Adjusted operating income in fiscal. Q3 was 63.5 Million up, 6.2% sequentially from 59.8 million in fiscal Q2 2025.
For fiscal. Q3 we had adjusted net interest income of 6.8 million. Increasing, 400,000 sequentially from 6.4 million in Q2.
our adjusted income tax rate in fiscal Q3 was 3% and resulted in an expense of approximately 2.1 million
we expect our adjusted income tax rate to remain at 3% for the remainder of fiscal year, 2025
We are continuing to assess the impact of the US, government's recent legislation to understand the longer-term impact on our income tax rates and Associated balances.
Fiscal Q3 adjusted net income increased approximately 6.1% to 68.2 million compared to 6 4. 3, 2 5.
Adjusted earnings per fully diluted share was 90 cents. Utilizing a share count of 75.9 million shares compared to 85 cents of adjusted earnings per share in fiscal Q2 2025.
8 quarters.
Now, moving on to operational, balance sheet and cash flow items.
Our Q3 accounts, receivable balance was 129.5 Million down from 131.4 million in fiscal Q2 2025.
The decrease in our our balance was driven primarily by stronger cash collections.
Our Day sales outstanding averaged 47 days which was below our previous quarter at 51 days.
Inventories were 215.4 million at quarter end up sequentially from 209.3 million. Largely driven by inventory increases to support existing programs and anticipated. Future demand across the business
inventory, turns increased to 2 times from 1.9 times in the preceding quarter.
Fiscal Q3 cash flow from operations was approximately $60.4 million, up $21.6 million sequentially and an increase of more than $11 million over fiscal Q3 2024.
The sequential increase was primarily due to increased net, income combined with fluctuations in working capital.
As I have noted in previous quarters given the Dynamics of our growing business. It's typical to have variations in cash flow from quarter to quarter.
Our business model over the last few years has demonstrated strong cash flow from operations.
We believe We are on track for our cash flow from operations, to be in excess of 220 million for fiscal year 2025.
Capital expenditures totaled $8.8 million in fiscal Q3, up $700,000 sequentially.
As a result of our increase in demand from customers. During the fourth quarter, we expect to purchase 12 million of surplus equipment at the RTP Fab from the previous owner.
This will allow us to expand our RTP capacity by up to 30% over the next 12 to 15 months.
Including this 12 million purchase. We expect our total Capital expenditures for fiscal year 2025 to be in the range of 40 to 45 million.
Next, moving on to other balance sheet items.
Cash Cash equivalents and short-term Investments for the third fiscal quarter were 735.2 million up 53.7 million from Q2.
comparing our cash and short-term Investments to the book value of our convertible notes, we are in a net cash position of more than 235 million as of July 4th 2025,
I will highlight that we expect to pay off the 161 million of our remaining 2026 notes over the next 3, fiscal quarters as these notes become due under the terms of the original agreement,
As we move into our fiscal fourth quarter, we expect revenue and profitability growth and to also maintain a strong balance sheet with ample cash to support our strategic goals.
We will continue to carefully manage our discretionary and capital spending to support annualized revenue in excess of $1 billion while further improving our operational margin, EPS, and cash flow.
I would like to thank the entire macom team for their contributions over the past quarter. Including those that supported the planning and accelerated integration of the RTP Fab.
I look forward to us making ongoing improvements to the business as we complete the remainder of fiscal year. 2025, I will now turn the discussion back over to Steve.
Thank you, Jack.
They come expects Revenue in fiscal Q4 ending October 3rd, 2025 to be in the range of 256 to 264 million.
Adjusted gross margin is expected to be in the range of 56 to 58% inclusive of the near-term impact of the early RTP Fab transfer.
And adjusted earnings per share is expected to be between 91 and 95 cents, based on 76.5 million fully diluted shares.
We anticipate 5%, sequential, Revenue, growth and data center, and Industrial, and defense.
We expect Telecom revenues will be slightly down sequentially.
These targets support record, revenue and earnings for the company.
And finally, I would like to take a moment to announce that Susan, Ocampo will be retiring from our board of directors effective, as of August 31st 2025.
Susan together with her late husband, John O Campo fundamentally transformed macom when they acquired the company. In 2009, setting macom on a path of innovation and growth that continues to this day.
Providing exceptional guidance through our company's most significant periods.
The okmo legacy is permanently woven into the fabric of our company from our corporate values to our commitment to Excellence.
Susan has shared with us, her plans to dedicate more time to philanthropic Endeavors with the particular focus on supporting engineering students pursuing degrees in RF, engineering and related technical fields.
This commitment to nurturing, the next generation of semiconductor Talent, reflects Susan and John's lifelong passion for education and our industry.
We're inspired by Susan's Vision to give back to the industry that has been Central to her professional life and we look forward to seeing the impact of our future endeavors in the years to come
on behalf of the entire board and management team. I want to express our gratitude for Susan's dedication and steadfast commitment to our company's success.
While we will certainly miss her guidance. In the boardroom, her contributions will continue to benefit mcom for years to come.
I would now like to ask the operator to take any questions.
Thank you. Ladies and gentlemen, to ask a question at this time, you will need to press star 1, 1 on your telephone and wait for your name to be announced.
As a reminder, in the consideration of time, as you, please limit yourself to 1 question and 1 follow-up.
Please stand by. We'll be compiling roster.
Our first question coming from the line of Quinton with Needham and Company. Yin is now open.
Hey guys. Uh, congratulations on the nice results and Outlook, I guess. Uh, maybe maybe start, uh, with, uh, the RTP fat conveyance. Stephen Jack you mentioned. It's going to be a 60 basis point headwind, um, but you now have the opportunity to sort of get in there, increase capacity. Enhance yields wondering if you could give us some sense. When do you think those improvements could turn RTP from a margin headwind into a margin Tailwind?
Thanks for the question Quinn. And maybe I'll say a few words about the transfer and then Jack can also um, add some comments. Uh, so number 1, we're very excited to have this uh Fab conveyance behind us. Uh as part of that conveyance, it included bringing over and onboarding about 100 180 employees. So we're now welcoming uh the workforce that has been working in the Fab and around the Fab uh that we're not technically macom employees over the past 18.
18 months. So a big hearty. Welcome to all those employees. Uh, our integration teams have been working very well together over the past 18 months. Uh, we've been able to migrate all the it systems, uh, all of the purchasing all of the controls that was really at the, uh, under the control of of the wool speed management team is now fully under Ms control. So what that means is, there's no more, uh, uh, Fab operating committee where, uh, there would be sort of, uh, you know, wool speed and may management defining projects in the Fab, you know, looking at priorities, all of that goes away. And now we have full range uh, to do what we want when we want. And of course, the first thing we will focus on is improving yields efficiencies cycle times and overall quality and performance of the Fab. And uh as part of this, I'll just highlight that we took 1 of our uh senior Executives that had been running the law.
Fab and he and his family moved down to RTP. And so, we have new leadership on the ground that understands how make on lights to run its Fab. So we're very excited, uh, to see all the great work from, um, him and his team. So as we look forward, as we start to uh move these uh you know, enhancement programs into Financial benefit. Uh you know we're modeling as we look out over the next few quarters anywhere between 25 and 50 basis points of improvement.
A benefit to the overall a profitability of the operation. So very excited about the transfer. Uh, did it about 6 months before? Uh, we had originally planned, we had always wanted the Fab to come over as sort of a gross margin neutral. Clearly, we're just a little bit behind about a million and a half dollars on a quarterly basis right now, and we think that's easily managed going forward and maybe Jack can add some comments around our future plans.
Yeah, great thanks Steve and quick. You know, we've we've had the Fab under our full control for for all of uh a little less than 2 weeks at this stage. So we're still learning and finding items that are out there. We think we've got a, a good plan to make those improvements from a yield perspective. We are familiar with running a Fab of this size. We have similar capabilities here in Lowell and that extends to some of the suppliers that we have. And making sure that we're linking up our supply base with the supply base, that's down there at RTP. So we we've identified a number of different opportunities that we think we can work through over the next 90 days that will will help, uh, improve the margins as we go forward. And work our way through fiscal year 2026, so great effort and, uh, look forward to, uh,
To to to weaving the RTP Fab fully into uh, into mcom. But a lot of work was done up front to make sure we understood what we were working through, uh, as part of this transition. And, and a lot of that work had helped us to accelerate it and get it done. Uh, almost 6 months ahead of schedule.
Excellent. Thank you for all that color. My second question, just wanted to come back to the LPO opportunity. It’s very encouraging to hear that your first customer is starting to go into volume production. I’m just wondering if you could talk about the pipeline you see for LPO adoption. Are you seeing a broader number of customers? You know, sort of where you’re engaged looking to go to production say in fiscal 2026 and beyond? Just any sort of sense of how quickly you could see broader adoption of LPO.
Yes. So, um, if we take a step back and look at some of the work, we, uh, showcased at the ofc at the end of March beginning, beginning of April this year, it's important to highlight that our our, uh, demonstration at our booth had an lpo ecosystem being uh, showcased, which included, uh, utilizing switches from 2 different vendors, servers from 3 different vendors and we, we had 12 different module manufacturers. Uh, showcasing their Hardware, which was either running at 400 or 800 G.
Uh, and both multimode and single mode Solutions. And so that really uh, I think it puts a, a stake in the ground as to where lpo was, uh, back in March. And so, now, as we look at where we're at today, a lot of that Hardware is being qualified by end users and we're starting to see a production orders role in, uh, and so we're very happy about that. That and so we do believe that over time, we will continue to sign up, new customers, uh, for this, for this applicate application. And then of course, you might ask, why is that? And I think fundamental to the lpo solution is it's a solution that eliminates the DSP, which means its lower power lower latency lower cost. It's easier to use, uh, and it's ideal for short links.
Now, the challenge of course, is the customer needs to work on getting acceptable bit error rate over all of their use cases. There has to be very clean interrupt between all the different hardware and you lose some of the creature features of the DSP and the application. And and sometimes that is a problem for the end user. So, the, the adoption of lpo is compelling, uh, for the reasons I stated, but it also has its challenges, which means it's not ideal for all cases, but we are seeing pull. Uh, and I would say that that pull is increasing. Uh, as we stand here today,
I would say that we've signed up uh, 1 customer for production, we're very close to signing up a second and we expect that as we move into 2026, uh, there will be more business.
Thank you in our next question. Coming from the lineup Lane Curtis with Jeffrey seal and his Melvin.
Specifically anything that you're seeing in industrial uh would be great as well.
Yes, most of the growth in our industrial and defense category is coming from defense. So let's be clear about that. And that the book to Bill of our uh, IND business has been over 1 uh for at least 6 quarters. Maybe 5 quarters. So that the category has been doing quite well. Uh, the industrial category for us is a little bit of a catch-all and we did start to see some improvement. This past quarter, as I mentioned and our general business, some of that test and measurement related some of its uh medical related. Uh but generally speaking it's a the industrial is a small segment for us and our main strategic focus is taking full advantage of the expanding and growing Defence market. And so we really put all our resources on that. And um, so
I would just say that the industrial macom is not a bellweather or for how that market is doing. Uh it's a small piece of our business and uh it's a general category and it's it's slightly improving today.
Great thanks please. And then I I wanted to ask and I feel bad asking the question because it's been such a good segment since the acquisition. But as we kind of look at you trying to fill this RTC Fab, just curious down slightly in September. You know what, what's driving that and you know I I guess.
You know, when you look at this RF business, I think it surprised. A lot of people how strong it had been, and you have this great opportunity to gain some share with this capacity. Maybe you just comment on September. And then, you know, the, the kind of outlook for the RF business in general,
Right. And we're, we're very happy that our Telecom business. Generally speaking has been growing, uh, uh, really since the beginning of uh, or the end of our fiscal 23 and we are running uh, near a record level levels. And so when you sort of compare our Q3 performance to our Q4 guide, it's it's I would say noise level, uh, differences, it's not meaningful. Um, I think what's important to note is the secular growth of satcom satellite Communications where we have a very strong position on the ground. Uh, you know, gateways as well as on the satellites. Uh, we are seeing, uh, solid business. And, uh, we are predicting growth into next year for our 5G business year-over-year. Uh, we are starting to see some improvements in our, uh, 10g Pawn Business, uh, over the last couple of quarters, so, uh, I wouldn't read anything into the, uh,
The modest sequential decline going into Q4 the fact is on a full year basis. Our Telecom business, uh, should grow over 40%. So I think we're, we're quite happy with that.
Thank you. Our next question. Coming from the lineup, Thomas Ali with barklay Selena is now open.
Hey guys, thanks for taking my question and, uh, congrats to uh, the team for reaching that 1 billion dollar run rate in the June quarter. I know that's what you kind of started out on this adventure targeting. So, congrats on that. I, um, I wanted to start out um, on the data center bucket. So continued, strong growth into the back half of this year. Uh, can you walk through the moving pieces of that bucket? Historically, I think the largest piece had been kind of toss and drivers in Optical modules and ACC was kind of coming up the curve and now you're getting some lpo contribution. But in terms of the drivers of what's continuing that strength here into the back half of the calendar year, maybe spend some time just walking through where specifically you're seeing the strength in that bucket.
Sure. And um, as I said in my uh, remarks, we've we are seeing broad strength this year, across all of the data rates. So I just want to highlight that uh, to begin with and I'll also remind listeners that in 2023. We had about 6% year-over-year growth in 2024. We had 35% and now we're triangulating for 2025 to have about 48% year-over-year growth. So very, very strong performance.
Analogue Solutions, we are not. Uh, even though we do have a DSP in production, uh, we are not spending our R&D dollars on DSP technology. Um, we are spending our R&D dollars on looking forward at the next data rates and that's why I mentioned uh the 300 gig and the 400 gig R&D uh work that we're doing. So uh, great work by the team. Uh, generally speaking, uh, we we're, you know, engaged not only with the pluggable module, uh, you know, people that are in the market but also people that are working on, um, see, you know, CPO. Some people call it, uh, NPO. So we are working with companies that want to push Optics onto the pcbs onto the switchboards. And for from our point of view, it's an lpo solution without the package.
Now, um, the 1 last thing I'll highlight is, um, our fiscal 25 was a very good year for our 2, our our linear equalizers for a 1.6 T application. And our lead customer there is basically during the course of this year they ramped up that application and they ramped it down and so when we look into our fiscal 26 um we want to make sure that we are able to add new uh 800 or 1.6 T programs to our business and we are working to that end. So while we do see lots of growth across the
Um, uh, the the product segments. Uh, I think the year-over-year comps on acc uh, are still to be determined.
Helpful. Uh, and then the second 1 is, is maybe for Jack just on RTP. So you you gave some of the Cadence on headwind turning into Tailwind over the next couple of quarters. But uh, I know you guys don't want to give away your secret sauce here, but I remember kind of early days of that deal. You had talked about, potentially bringing some product in-house that you had done potentially externally, could you maybe talk about the product roadmap at RTP? Is it, is it something where you can bring in compound semis, um, or make any changes to the product that's coming out of there? That also offers a next Lego of of growth and margin Improvement? Just anything that you can offer on strategy longer term with that bad and why it's so critical for you guys. Thank you.
Yes, maybe I'll see you a few words first time and then Jack can add some comments. So uh, when we first acquired the business we we recognized that their mimic portfolio was too small
Uh, they had a lot of great Foundry business which we wanted to continue to grow and they had a very good position in 5G. And so, when we look at how to improve the margins, obviously looking at, uh, adjusting the product mix there primarily, uh, weighing towards mimics which are generally very high margin products. We wanted to make sure that we had, uh, the best designers in the industry.
To make use of the processes they have. And you've seen us take actions, uh, with hiring and adding R&D resources to our mimic design teams, including, uh, the recent acquisition of a company called enic, which had has design centers in Dallas and, uh, San Diego. And so we really feel great about, uh, our design Talent, which will drive high value, products, through that Fab,
When you you you specifically asked about sort of insourcing. And so there was a, a part of the, uh, RF business, uh, supporting 5G includes, uh, purchasing from external suppliers, uh, things like capacitors and, uh, passive devices. We call them ipds that might be used in a matched amplifier. Module.
And we have a very active program to insource. All of that.
And we will insert it, uh, most likely in our LOL facility, which will also solve the other issue with, which is, uh, you know, the utilization issues that we've been talking about here in Lowell. So, our strategy for improving the profitability of the products includes, uh, making use of all of the Technologies at our, at our different Fabs. And so, some of the insourcing that I think you're referring to is more insourcing, some of the Silicon, uh, and gas passives that are currently outsourced into 1 of our other Fabs.
It is a trusted Foundry, similar to what we have here in Lowell. So we think that's a strategic capability that we have and as we've mentioned it takes a little bit longer to to get things moving from a defense customer perspective. But we have made great strides over the past year or so with those customers and see that as an opportunity to help support growth and uh and with the Fab under our control we'll be able to uh, expand the capacity. We talked about adding some equipment over the next 12 to to 18 months. So, you know, we think we're, we're in a good spot to, uh, to help improve the overall, fundamentals of that Fab as we work our way through fiscal year 26 and Beyond.
Thank you. And our next question. Coming from the lineup, call AC
Yes, thank you. Um,
I was hope a lot of good questions already within data, Comm and Industrial so and the Fab. So I want to Pivot a bit to Telecom.
Uh, I guess why? Yeah. Why why? Why flag growth in Telecom giving uh, going strength and DCI.
And similar to that, you know, when you, I guess, when would we expect a pickup and satcom from some of the breadth of the design wins?
Uh, you've previously communicated, does that begin to pick up back in December and end in 2026? Any thoughts on the satcom opportunity within telecom? Is the growth as great as well? Thanks.
Sure, thank you, Carl. Um, you're correct to highlight that our, our DCI, or Metro Long Haul, business is doing quite strong. Uh, we have lots of programs running in terms of very high data rate for, uh, Long Haul as more and more data centers, are being built out. Uh, it's driving the need for, um, Hardware that is, uh, in, in, in some instances, coherent based Solutions, so that business is doing quite well. Um, so that's really not an issue there. I think the, uh, the quarter over quarter. Uh, dip, you're seeing in Q4, I would say, is more to do with just uh, managing the backlog, uh, generally speaking and and working with customers to hit their dates. And again, I do have to remind you like I like I mentioned earlier that year over year our our uh Telecom business in the fourth quarter as forecasted is is doing uh quite well. So you know the year-over-year numbers um are
Very, very solid. So I don't think there's anything fundamentally, uh, broken there. Uh, I think it's it, uh, that market has seen some great growth this year and we would expect and that would have said, um, and we've talked about the fact that the, the potential within this segment is quite large. Um, and then your last comment about uh, how are the various satellite programs running? Um, I did provide an update on the last quarter's call that uh, we were finishing up the
IC design phase, we were building, engineering models, uh, that work continues and in the near term, we're looking towards uh delivering that our major customer for that 1, large order. Um uh engineering models. Uh, and then once they go through, uh, a review of that Hardware, uh, we go through what they call the CDR critical design review, We lock down the design, and then we start production the timing of that right now hasn't really changed. We're thinking, uh, production could start as early as the end of this calendar year or the beginning of next calendar year, it will really depend on the results of the work that we're doing over the next few months.
Thank you. I'll see the floor.
Thank you. Thank you.
Our next question coming from the lineup Tori Sandberg with Steve for your line is now open.
Yes, thank you. Um, Steve, you talked about the, uh, photo detective product, uh, with the Tia and I think you mentioned your chip scale package. I'm I'm just uh, trying to understand, you know, the value proposition there. Uh, I mean it does sound like a level of integration that perhaps some of your competitors don't have and and could you talk a little bit about what specific, um, you know, use cases, they will be for those Tia's. And what I mean by that is, is that sort of intersecting 800 gig or 1.6, or is it more broad-based than that?
Time our products are uh what they call Self hermetic which means they can, you know, the you don't need to put them in a hermetic uh, hermetically sealed uh module so they can be open to the environment. And we use uh, very special processing uh, to achieve sell hermiticity. Which is unique. We believe. And we have a very good control over the the lens fabrication process. Both on the front side and the lining, the lens to the back side of the device. And so a lot of engineering has gone into these designs macom has been known historically for having the most sensitive photo detectors in the industry. And historically, our customer base has been test and measurement. Companies people that are making Optical, uh, testers that might have a, a sort of a gold box optical receiver in the piece of test equipment that we manufactured. And over the last year, we have been focusing, very heavily on winning high volume sockets in the data center. And and uh, in 20
25 and 2026. You're going to see the the results of that effort. Um and and to do that I would just add that we have um really set a very nice foundation for high volume testing and Manufacturing to meet what really looks like massive step-ups in volume for us. So we're very excited uh with the with the um
With the work that the team is doing. It's been a, a group effort between our business units, uh, our operations, our, uh, you know, applications teams and where these parts are used. So it's a 200 gig per Lane Photo detector. So it's suitable for, um, an 800 gig uh, uh, receiver or a 1.6, uh, T receiver. Uh, so in in, in the, in the case of a 1.6t uh, receiver, it would require 8 photo detectors. So you're talking about, you know, millions and millions and millions of uh devices.
Yeah, no. That's that's a great caller. And as my follow-up, you mentioned. Um, uh, PCA gen 7. I assume these are again, uh, pcie over fiber products, and not copper, um, and, um, again from to sort of try to understand the timing of that, uh, you know, with, with this, again, try and intersect um,
You know, I guess the 2027 cycle, or could we start to see some revenues even before then?
so I um yes, you're right that pcie 7 is um,
Is Optical based and we are um, working with some customers as well on. Um, I would say electrical solutions that are, you know, that will maybe come online before uh, pcie 7. Uh PCI 7 is a, you know, fairly High data rate, bidirectional lots of different Lanes, uh, 32 gigabits per Lane, but many many lanes. So as I highlighted in my comments,
Uh, the compute industry is really pulling companies like mon into their block diagrams because they need to add Equalization as they move high speed data across their computer boards in, uh, and so it's kind of a perfect ancillary solution. And again, all of this would fall under our, uh, equalizers. And yes to be very clear. We do have equalizers for pcie that are electrical based not just Optical.
Question, coming from the line of our with 5% Handler you let us now open.
Yeah, hey guys, congratulations, first of all, on yet another solid and fantastic result. Um, Steve, I wanted to understand the headwind with the margins. Um, you got it a little bit earlier than you wanted. Is that simply it, that the revenue isn't quite where it needs to be? And I want to understand what you can do or what you need to do.
Um to to overcome this small 1 and a half million or 60 basis points of margin. Are there any functional steps that I needed to be done?
Months, and I'll highlight that even before we closed the acquisition, we affect effectively worked with the seller to restructure the business. So that the day it came in to make, um, it would be accretive to our earnings and and we met that challenge and met that goal. And we also said that this, uh, this acquisition would effectively pay for itself in, in 3 years and we think we're on track as well, but as we go forward, it's looking at critical controls. It's looking at, uh, areas where we have unacceptable yields. Uh, it's turning. Its turning the material through the Fab faster, which means sort of re-engineering, the the industrial side of how material Moves In The Fab. So I, I wouldn't say or point to any 1 particular thing. I think it's it's 20 different projects that our team has in flight to incrementally, improve financial performance. But the, the 1 thing, I think we, we, we should really focus on which is
We can double the size of this business. And that is our, that is our plan. So, when we look at our position in the market in gain on silicon carbide, with this technology set, we have tremendous upside. And so, uh, it's a, it's an anchor technology that allows us to address, major customers across test and measurement military defense, uh, telecommunications where we can not only sell this anchor product, but also all of our other
Around it. So it's it's really helping make home, uh, get to the next level. And so it's it's block and tackling in the near term. And as we said earlier, uh, 25 to 50 basis point improvements. Over time, uh, starting you know, beginning of next year.
Jack. Yeah, the thing I would add is just we we did not have operational control of the entire Fab in terms of uh the workforce and how we run the equipment, when we run the equipment, up until a little less than 2 weeks ago, we had made some pretty good strides with our Fab operating committee, uh, with the former owner of the Fab. So, I think, out of the gate we were we, we were doing pretty well. Obviously, over the past 6 months, uh, the former Fab owner has had a lot going on. And uh, there there may have been a little bit of a lack of focus. I think that is what uh, drove some of our decision to accelerate the transfer. And I think we were going to be more than willing to accept uh that little bit of a temporary margin step back for us to ultimately be able to accelerate some of the improvements that we're anticipating. Now that we have full control. So um and and once again we're able to minimize the uh the risk now that uh that we can control it. So hopefully that color helps uh with regard to that uh minor margin setback that we referred to.
No, it does and thank you for that Clarity. Um, I guess my next question is also on the Fab because most of the product, uh, questions have been sort of asked. Um, I guess I wonder if you would be willing to share with us what level of revenues this Fab is doing now. And also, you know, we understand it to be a telecom Fab but from a technical competency, what kind of Technologies can you have in this Fab and what kind of markets can it address?
And then also, I guess um, a multi-part questions when it's all said and done and when let's say 2 years from now I'm talking to you. What could the margins be for this company? Could there be a creative to your corporate gross margins before you bought this? Or would it fall somewhere in the same range? Sorry for the multi-part
A harsh. These are great questions. Um, and and before I answer, uh, or try to answer many of those questions, I I'll also highlight um, something that we're very happy about is as we exit our, our fiscal 2025. Um, we're we're really running at operating margins that are, um, peaking uh, really in the last couple of years. So even though we had a little bit of a setback here on the gross margin 101.5 million of of cogs, or 60, uh, basis points, um, the the business and the overall fall through in the operating income.
Of mcom is growing.
And as we look into next year, we believe that the earnings are going to grow faster than the revenue. So I, I think we have very good control over a lot of the different moving parts.
A telecom Fab, uh, they have it. They uh, when you look at the, their core technology,
The core technology, it's essentially uh very high power. Again, a silicon carbide that operates up through xband or around 10 gigahertz on most of their uh, most of the Legacy Pro processes.
Those are ideal for, very high power applications. A lot of that technology can replace LD Moss, especially in military applications where you have high, you can achieve higher powers and get better efficiencies
The RTP Fab also has a 0.15 µm process for microwave applications, and that process operates up to about 20 gigahertz.
So now you're able to capture. Um, back hall, radio links, you're able to capture other telecommunication uh applications military applications and your covers, many satcom bands.
Satcom is 1 of our fastest growing areas. We've talked a lot about it over the last couple of years with more and more Leo constellations being launched in in meal constellations. Um, the the RTP technology is ideal for those applications and I'll also add that many of these platforms are now adding direct to sell or direct to device, uh, uh, uh, connectivity, which typically run at the
The cellular bands. And that is where we really have an advantage where we have a very strong position in 5G. And many of these Leo satellites are effectively flying base stations, where they need, transmitters and receivers, and macom has great technology to support that.
and then, the last thing I'll add is
it is a trusted Foundry with a very high mrl level for um, to support military production programs and so that business for mcom is booming and it's booming because uh we have a very strong
Uh, amplifier and transmitter design capability. And when you combine that system level capability, engineering capability with the Ganon silicon carbide, technology at RTP, uh, we're hard to beat. So we're very excited about the, uh, the prospects. And as I said earlier, I'm confident we can double this business, double double the revenue of this business,
Thank you.
Our next question comes from the line of David Williams with the Benchmark Company. You'll let us know often.
Hey, good morning gentlemen. Uh, thanks for uh, letting me jump on. Um, I guess maybe, maybe first um, thinking about the, the lower speeds you talked about that are gaining some traction. What is, what is driving that is? It, is it more of, just the expansion beyond the, the core data center and into maybe Edge, uh, AI. That's kind of moving out or, or maybe anything, that's driving the, uh, the Legacy type Solutions.
Yes, we I I think, um, you're thinking is correct there. We believe that as the uh as the AI data centers, basically begin to expand. There's sort of a front end uh traditional data center maybe in front of it, uh, looking towards uh, the internet. And so, we are seeing an uptick across, uh, various product categories, that would support that, uh, forward-looking, uh, uh, you know, the forward-looking, uh, equipment. And so, we think that the lower data rates are being sort of dragged along because of the builds. And um, we believe that's why the our our lower data rates are are growing
Okay, great. And I would assume that those products probably have a little better margin profile and, uh, and then just just technically on that. Um, can you talk to me? Is there a, what's the impact is from the the utilization or underutilization at the lower Fab?
yeah, so, uh, well, 2 things, the the lower data rate products are, uh, in in most of our uh, uh,
Thank you. Our next question. Coming from the lineup, Harland Sir, with JP Morgan yon is now open.
Good morning guys. Great job on the quarterly execution. Um I know there's been a lot of questions on the RT. RTP sap conveyance but you know I would have thought that there would have been a gross margin step up on the transfer. I mean you've had a supply agreement in place.
I assume that your cost per way for under the supplier agreement. Well, was will be fully loaded cost right which? Which includes a lot of the deficiencies and inefficiencies you've talked about yields Etc, right. But then they add a markup. So not with full ownership. You don't have that markup which can imply better growth margins. So what am I sort of missing here?
Yes. So, uh, our goal was always to have the Fab come over as neutral, or positive and that and so, um, and so we, we clearly missed that goal. It's coming over, and we're about 60 basis points away from, uh, where we would want it to be neutral. Uh, I'm not going to comment on the supply chain agreement, or the cost structures on our prior arrangements with, um, with Will speed when we were, um, not in full control of the fap. So I really can't comment there. I think it's important to highlight that. Uh, as we've said, now multiple times that as we look forward, we expect to improve the performance of the Fab which
Which will drive. Uh, gross margins. And remember, you know, macom is a complex, uh, company. We have a Fab in Lowell. We have a Fab in RTP, we have 1 a small Fab in France, and we have our, uh, and we have our Fab in Michigan and you combine that with a large business that is effectively a fabulous business. Um, you know, there's there's a lot of moving Parts in our, in our model and our gross margin model. We like the diversity of our business and our manufacturing footprint. We think it's a competitive advantage and, um, as we review the execution of the, uh, acquisition the integration the transfer, uh, we give ourselves a very high grade for, um, uh, for getting to where we're at today. And we think things will only improve from here.
Perfect. Thank you for that. And um, a lot of product questions and Technology questions. I already asked but boundaries, it's always been a part of the mcom strategy, right? It's been a while since we caught up on this part of your business, I believe the team offers I think the most diverse set of 3 5 compounds semiconductor processes in the industry. All right, I think you guys have something like 20 different process types
Uh you support a number of different device, architectures dialed mosfet mesfet pamp like what's the traction been like in attracting Foundry programs, how big is Phi as a part of your overall Revenue profile today and maybe your view on the growth outlook for this part of your business.
Harland I I I very impressed that, you know, all our processes, so thank you for that. Um, your exactly right. Uh, we have a very rich portfolio of processes and I would perhaps, um, invite in in investors and listeners to look at our summer newsletter, uh, which we put out and it highlights a few different things. A lot of the work we're doing with ew, uh, systems, uh, Bae award, uh, it talks about a contract, we received from the French government, uh, and it also highlights and summarizes the various processes that we have at our various Fabs, whether it's gallium arsenite, Gan, some of the LG gas, uh, devices that we use for our limiters. Um, and some of our A and D customers as well as some of our very high frequency gain on Silicon. So you're exactly right to to highlight that. There is a lot of diversity. Our our in, in our philosophy regarding Foundry is to um,
To allow customers access to our fabs as Foundry customers, uh, Mech has always had a, uh, a Foundry customer base in Europe. We're continuing to build that here in Lowell. We have, um, a small number of Foundry customers, uh, mostly in test and measurement and defense. Uh, we welcome their business and we support that business. And, of course, the fab in North Carolina also supports Foundry. So our business model is to allow customers to design chips, if that's the way they want to run their business, and we welcome their business. Uh, as a supplier, we don't, um, break out the Foundry numbers, uh, specifically, uh, just again because of competitive reasons.
Coming from the lineup, Tim something with nland, capital markets, your line is now open.
Hey, good morning, thanks for squeezing me in. I know we're running along here but just a quick question.
Um, on Telecom, which at least came in a little bit stronger than I expected.
Um, and I'd be curious in particular what you're seeing in, in cable networking, that does seem to be picking up a bit across the industry, and I'll just ask my follow-up real quick here with regard to, uh, lpo. You mentioned, uh, new engagement there. Um, and on the topic of the business diversifying is that with a new customer or
a current large customer that can give us a little more color there. Thanks.
Thank you. Yes. Um, I'll start by saying our, our cable infrastructure business is growing. Uh, it's a small piece of the overall Telecom number, but it is going, uh, in the right direction and it is growing. So, we're pleased about that, uh, the lpo engagements that we have, uh, uh, are with customers that we previously had done business with, on other platforms. So they're not foreign to me. Uh, we've been supporting them, uh, with our other products, for some of their, uh, pluggable Optical modules that are more, uh, traditional uh, modules and um, as I mentioned in in our script, we have 1, uh, lead customer. And um, we think that the dam is beginning to
Break and we'll be bringing on additional customers. Uh soon. Um,
I'm not sure I covered all your questions, but I'll pause there.
Thank you. Our next question, coming from the line of Richard Shannon with Craig, Callum, Capital Group, your line is now open.
Well, great thanks guys for squeezing me in as well here. In my first question would be a quick and simple 1 to 2 partner here just to get a sense of size of revenues here. I'd love to get a sense of the split between I and D specifically the defense here sounds like it's going very well loved to get that then also especially with the close of the RT RTP Fab. And you've talked a lot about game today. What's the percentage of sales? There's coming from your your various game processes and products.
Yeah, with with regard to the, uh, IND split, you know, that's varied over time. I think if you were to go back a number of years, we probably had uh, a majority of our Revenue coming through on the, on the industrial side of the business. That's obviously, uh, changed over the past, uh, couple of years, as as the defense piece is picked up, and also through some of the Acquisitions. So, um, we're we're probably closer to, uh, 6,535 split over time.
And then on again, check.
Yeah, we don't generally break those pieces out as part of um as part of our our public discussions
Okay, fair enough. I thought I'd try that 1. My follow on question is, um, as, as people are trying to model for 2026, I want to get a sense of relative growth by your segments here and maybe I'll offer a couple thoughts here. As I was trying to work through this. Um, you know, obviously seeing some tough comparison of the Telecom business, uh, and data center. It sounds like you're adding some new products which, which could continue to that growth there and obviously defenses going well, but I know you're not going to give as much of a quantification. But if there's any relative growth by segments, as you offer for next year, that'd be a great Outlook. Thanks thanks. That's all for me.
Yes, thank you for the question. It is difficult to discuss, uh, 2026 at this stage. I'll just highlight that 2025 we, we should be over 30% growth, maybe closer to 32 or 33% uh, growth. All of our secular growth Trends are intact across our core markets. Our portfolio has Room to Grow. We are still a small company relative to the uh, 8 billion dollar Sam that we sort of stand in front of. Um, I would say at a, at a high level, our revenues are slightly ahead of uh, maybe what we talked about previously in terms of achieving the 1 billion dollars. Uh, we talked a lot about the gross margins being slightly behind and we acknowledge that, uh, but our earnings are on track. And I think as we achieve that sort of
Billion dollar run rate. Uh, we should have earnings of over, um, 4 dollars, a share. Uh, as we, uh, improved the things that we need to improve, uh, clearly data centers volatile. We've talked about that in the past that hasn't changed. Um, our position in the defense Market Telecom Market is very, very strong. I think we touched on some of those, um, probably too early to talk about what markets will drive our growth next year. I think that's more likely a conversation. We'll have on our next call, as we wrap up our fiscal 25, and then look forward into 2026.
Thank you.
If your line is now open.
Great. Thanks for taking my question. I, I fear, I might have misheard the last 1 and, and I hope I'm not asking the same question, but, um, there's been a lot of attention paid today. Uh, on this call, I think to the gross margin. Um,
uh, effect of the RTP Fab conveyance. Uh, we understand there's 1 other, um, aspect of the business that's, um, preventing gross margins from, uh, achieving the, you know, the targets that you established at some point were 60% Plus at a billion dollar run rate and, um, your guiding lower than that. So, part of it, I get it. It's the um, RTP Fab conveyance. I think the other piece is utilization low but can you talk about your ability to um track towards that 60% level you you discussed Improvement in utilization and mole and uh performance in RTP. So should we expect perhaps sometime in the middle of next year to hit that? Uh 60% bogey.
Yes. Uh, thank you for the question. And so, um, as we look out into 2026, and I realize that, you know, it’s early to be doing that, but as we look at the programs that we have in place and all the moving parts, um, we think we're more likely to exit, uh, 2026, uh, closer to 59% gross margins.
Sort of a year from now. And so, uh, that is sort of the trajectory we think we're on. So, um,
I don't think 60% gross margin is going to happen in our fiscal 26.
Um it's more likely, a fiscal 27 uh event
Uh, okay. Thank you. Um, a follow up if I can um, you've talked a lot about
All the moving Parts within your data center business, there's a lot of products there. Um and for some of us, you know, the the detail is um maybe a little overwhelming. Uh, so let me ask uh, more high-level sort of simplified view of this capex is still very strong in in that and Market. Um, your guiding to a level where we should expect something about 48% sales growth, this fiscal year, um,
If, if there were no great movements in products. Uh, I wonder what we should expect growth to be next year. I, I would assume you don't want us modeling a similar 48%, uh, growth in the coming year as well, that's quite optimistic. But can you talk about the puts and takes and and how you might encourage us to think about growth in that market next year? Thank you.
Yes. And I I think you're right to say that we wouldn't recommend um putting 48% growth into you know, year-over-year growth for fiscal 26, uh, related to the data center segment when we look at our business, we want to have a, uh, a business that's constantly improving, its profitability. Improving, its operating margins, constantly diversifying the portfolio and getting a stronger position in the market and data center is 1 element of our strategy.
Big picture. Uh, we think may come should be growing double digits at on the top line. And and so you've seen that
Performance over the past few years 4 or 5 years. We would expect that to continue. Uh, the mix will change every quarter and every year. Uh, but because of the things we've talked about today, including the heavy investment and the Technologies and the products for our core markets. Uh, we think we have a, uh, you know, a very good, uh, strategy and a very good team that can execute the strategy. So how that shakes out for the data center? We'll have to wait and see. We'll take that sort of 1 quarter at a time, but I think, big picture, which I think you were asking about, you know, it would be our expectation that we are, uh, growing uh, our top line by double digits and we're beating, and we have even a higher growth, uh, rate on our bottom line.
Thank you. And I'm showing now for the questions. At this time, I will not turn the call back over to Mr. Daly, for any closing remarks
Thank you.
In closing, I'd like to thank all of our employees for making these results. Possible. Have a nice day.
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