v3.26.3
Operating Segments and Geographic Information
 3 Months Ended
Oct. 03, 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 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 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):
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 were 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.
The following tables present information on the Company’s reportable segments for the three months ended October 3, 2026 and September 27, 2025 (in millions):
Three Months Ended October 3, 2026
Network and Service EnablementOptical Security and Performance ProductsTotal
Product revenue$322.5 $93.2 $415.7 
Service revenue53.6 — 53.6 
Net revenue$376.1 $93.2 $469.3 
Cost of revenues127.3 40.0 
Research and development60.7 3.3 
Selling, general and administrative60.2 6.3 
Other segment items(1)
32.1 3.3 
Total operating expense153.0 12.9 
Segment operating income$95.8 $40.3 $136.1 
Segment operating margin25.5 %43.2 %
Unallocated other expenses(54.4)
Interest and other income, net10.3 
Interest expense(5.7)
Income before income taxes and equity investment earnings$86.3 
(1)Other segment items represents allocation of corporate level operating expenses.

Three Months Ended September 27, 2025
Network and Service EnablementOptical Security and Performance ProductsTotal
Product revenue $174.3 $83.1 $257.4 
Service revenue 41.7 — 41.7 
Net revenue$216.0 $83.1 $299.1 
Cost of revenues79.7 39.5 
Research and development48.5 3.9 
Selling, general and administrative43.1 6.2 
Other segment items(1)
26.9 2.6 
Total operating expense118.5 12.7 
Segment operating income$17.8 $30.9 $48.7 
Segment operating margin8.2 %37.2 %
Unallocated other expenses(41.1)
Loss on debt extinguishment(3.8)
Interest and other income, net1.3 
Interest expense(7.4)
Loss before income taxes and equity investment losses$(2.3)
(1)Other segment items represents allocation of corporate level operating expenses.
The following table presents information on the assets of the Company’s reportable segments at October 3, 2026 and June 27, 2026 (in millions):
October 3, 2026June 27, 2026
Assets:
Inventories:
NSE$128.2 $113.7 
OSP45.6 41.6 
Total inventories, net173.8 155.3 
Prepayments and other current assets - NSE(1)
30.3 22.0 
Assets not attributed to segments2,384.9 2,528.3 
Total assets$2,589.0 $2,705.6 
(1)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 three months ended October 3, 2026 and September 27, 2025 (in millions):
Three Months Ended
October 3, 2026September 27, 2025
Product RevenueService RevenueTotalProduct RevenueService RevenueTotal
Americas:
United States$156.3 $22.5 $178.8 $91.9 $14.8 $106.7 
Other Americas22.5 4.7 27.2 18.1 4.0 22.1 
Total Americas$178.8 $27.2 $206.0 $110.0 $18.8 $128.8 
Asia-Pacific:
Greater China$77.5 $2.9 $80.4 $55.6 $0.9 $56.5 
Other Asia-Pacific73.4 8.9 82.3 30.2 5.4 35.6 
Total Asia-Pacific$150.9 $11.8 $162.7 $85.8 $6.3 $92.1 
EMEA:$86.0 $14.6 $100.6 $61.6 $16.6 $78.2 
Total net revenue$415.7 $53.6 $469.3 $257.4 $41.7 $299.1