v3.26.1
Operating Segments and Geographic Information
 12 Months Ended
Jun. 27, 2026
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 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 provides an integrated portfolio of test, monitoring, assurance, and resilient PNT solutions that enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications.
(ii) Optical Security and Performance Products:
OSP leverages its core optical coating technologies and volume manufacturing capability to design, manufacture and sell technologies for the anti-counterfeiting, 3D sensing, aerospace, industrial and automotive markets.
Beginning in the fourth quarter of fiscal 2026, employer payroll taxes related to stock-based compensation are no longer allocated to the Company's segment results and are instead included in the “Other segment items” row of the segment presentation. Prior-period segment results have been recast to conform to the current presentation. The Company believes excluding employer payroll taxes related to stock-based compensation aligns the treatment of these taxes, which are highly variable, with the underlying stock-based compensation expense and provides a more consistent measure of operating performance. Accordingly, this modification is intended to enhance investors’ understanding of the Company’s operating performance. These changes have no impact on any of the Company’s previously reported U.S. GAAP results.
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 and certain other current assets 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, including related employer payroll taxes, acquisition and integration 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.
Information on the Company’s reportable segments is as follows (in millions):
Year Ended June 27, 2026
Network and
Service
Enablement		Optical Security and Performance ProductsTotal
Product revenue$989.2 $335.4 $1,324.6 
Service revenue193.7 — 193.7 
Net revenue1,182.9 335.4 1,518.3 
Cost of revenues420.9 160.2 
Research and development231.1 13.5 
Selling, general and administrative219.5 25.8 
Other segment items(1)
121.4 13.0 
Total operating expense572.0 52.3 
Segment operating income$190.0 $122.9 $312.9 
Segment operating margin16.1 %36.6 %
Unallocated other expenses(207.8)
Loss on debt extinguishment(56.7)
Interest and other income, net15.3 
Interest expense(47.4)
Income before income taxes and equity investment earnings$16.3 
Inventories, net$113.7 $41.6 $155.3 
Prepayments and other current assets(2)
22.0 — 22.0 
Assets not allocated to segments2,528.3 
Total assets$2,705.6 
(1)Other segment items represents allocation of corporate level operating expenses.
(2)The amount presented represents the prepayments and other current assets attributed to NSE that are reviewed by the CODM. Other NSE related prepayments and current assets are not included as they are not part of the CODM’s measure of segment assets.
Year Ended June 28, 2025
Network and
Service
Enablement		Optical Security and Performance ProductsTotal
Product revenue$604.3 $307.7 $912.0 
Service revenue172.3 — 172.3 
Net revenue776.6 307.7 1,084.3 
Cost of revenues288.6 144.1 
Research and development179.0 17.2 
Selling, general and administrative165.3 23.7 
Other segment items(1)
101.1 10.1 
Total operating expense445.4 51.0 
Segment operating income$42.6 $112.6 $155.2 
Segment operating margin5.5 %36.6 %
Unallocated other expenses(97.7)
Interest and other income, net11.1 
Interest expense(30.0)
Income before income taxes and equity investment earnings$38.6 
Inventories, net$74.4 $43.5 $117.9 
Prepayments and other current assets(2)
5.8 — 5.8 
Assets not allocated to segments1,870.1 
Total assets$1,993.8 
(1)Other segment items represents allocation of corporate level operating expenses.
(2)The amount presented represents the prepayments and other current assets attributed to NSE that are reviewed by the CODM. Other NSE related prepayments and current assets are not included as they are not part of the CODM’s measure of segment assets.
Year Ended June 29, 2024
Network and
Service
Enablement		Optical Security and Performance ProductsTotal
Product revenue$536.4 $298.4 $834.8 
Service revenue165.6 — 165.6 
Net revenue702.0 298.4 1,000.4 
Cost of revenues262.3 143.4 
Research and development173.4 16.4 
Selling, general and administrative160.5 23.1 
Other segment items(1)
97.1 8.2 
Total operating expense431.0 47.7 
Segment operating income$8.7 $107.3 $116.0 
Segment operating margin1.2 %36.0 %
Unallocated other expenses(95.2)
Interest and other income, net21.7 
Interest expense(30.9)
Income before income taxes and equity investment earnings$11.6 
Inventories, net$53.1 $43.4 $96.5 
Prepayments and other current assets(2)
5.6 — 5.6 
Assets not allocated to segments1,634.2 
Total assets$1,736.3 
(1)Other segment items represents allocation of corporate level operating expenses.
(2)The amount presented represents the prepayments and other current assets attributed to NSE that are reviewed by the CODM. Other NSE related prepayments and current assets are not included as they are not part of the CODM’s measure of segment assets.
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 years ended June 27, 2026, June 28, 2025 and June 29, 2024 (in millions):
Years Ended
June 27, 2026June 28, 2025June 29, 2024
Product RevenueService RevenueTotalProduct RevenueService RevenueTotalProduct RevenueService RevenueTotal
Americas:
United States$503.8 $74.1 $577.9 $296.7 $59.3 $356.0 $265.0 $60.4 $325.4 
Other Americas87.8 17.3 105.1 51.2 18.0 69.2 50.3 15.0 65.3 
Total Americas$591.6 $91.4 $683.0 $347.9 $77.3 $425.2 $315.3 $75.4 $390.7 
Asia-Pacific:
Greater China$250.4 $8.4 $258.8 $209.1 $6.0 $215.1 $188.1 $5.9 $194.0 
Other Asia-Pacific182.1 29.0 211.1 136.0 28.5 164.5 126.5 26.0 152.5 
Total Asia-Pacific$432.5 $37.4 $469.9 $345.1 $34.5 $379.6 $314.6 $31.9 $346.5 
EMEA:$300.5 $64.9 $365.4 $219.0 $60.5 $279.5 $204.9 $58.3 $263.2 
Total net revenue$1,324.6 $193.7 $1,518.3 $912.0 $172.3 $1,084.3 $834.8 $165.6 $1,000.4 
One customer of the Company in the OSP segment generated $174.7 million, $166.7 million and $154.1 million of net revenue, which represented more than 10% of total net revenue, during fiscal 2026, 2025 and 2024, respectively.
Property, plant and equipment, net and Operating ROU assets, net were identified based on the operations in the corresponding geographic areas (in millions):
June 27, 2026June 28, 2025
United States$174.0 $181.2 
Other Americas2.3 2.6 
Greater China36.6 23.6 
Other Asia-Pacific9.6 8.9 
United Kingdom17.3 23.3 
Other EMEA27.3 26.4 
Total property, plant and equipment, net and Operating ROU assets, net$267.1 $266.0