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DATE

Monday, Nov. 3, 2025, at 5 p.m. ET

CALL PARTICIPANTS

  • Chairman and CEO — Seamus Grady
  • Chief Financial Officer — Csaba Sverha

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TAKEAWAYS

  • Revenue -- $978 million in revenue for Q1 FY2026, up 22% year-over-year and up 8% sequentially from Q4 FY2025, representing a new company record.
  • Non-GAAP EPS -- $2.92 per share (non-GAAP), reflecting a record level and including a $0.06 per share FX evaluation loss (non-GAAP).
  • Optical Communications Revenue -- $747 million, up 19% year-over-year and up 8% sequentially.
  • Telecom Revenue -- $412 million, up 59% year-over-year and up 15% sequentially, primarily driven by data center interconnect (DCI) products.
  • DCI Revenue -- $138 million, up 92% year-over-year and up 29% sequentially, rising to 14% of total company revenue.
  • Datacom Revenue -- $273 million, down 17% year-over-year and down 1% sequentially, with a smaller decline than forecast.
  • Non-Optical Communications Revenue -- $231 million in non-optical communications revenue, up 30% year-over-year and up 5% sequentially, supported by the new HPC revenue category.
  • High-Performance Computing (HPC) Revenue -- $15 million from the initial ramp of a new program, with guidance signaling further growth in Q2 FY2026.
  • Automotive Revenue -- $122 million in automotive revenue, up 19% year-over-year for Optical Communications revenue in Q1 FY2026 but down 5% sequentially.
  • Industrial Laser Revenue -- $40 million (non-GAAP), up 12% year-over-year and flat sequentially.
  • Gross Margin -- 12.3% gross margin, down 30 basis points from Q4 FY2025, attributed to FX headwinds and seasonal merit increases, partially offset by operating leverage.
  • Operating Margin -- 10.6% non-GAAP operating margin, down 10 basis points from Q4 FY2025.
  • Cash and Short-Term Investments -- $969 million at quarter-end, a $35 million increase from Q4 FY2025.
  • Operating Cash Flow -- $103 million.
  • Capital Expenditures -- $45 million in capital expenditures, above maintenance levels due to progress on Building 10 and acceleration of a portion of the facility.
  • Share Repurchases -- 970 shares were repurchased at an average price of $276 for a total outlay of $268,000; $174 million remains available for future buybacks.
  • Q2 Revenue Guidance -- Range of $1.05 billion to $1.1 billion, implying 29% year-over-year growth at the midpoint.
  • Q2 EPS Guidance -- $3.05 to $3.30 per diluted share, with FX headwinds potentially offsetting some profitability gains.
  • Building 10 Expansion -- Construction of the 2 million-square-foot facility remains on track, with a portion being accelerated for mid-2026 completion to support growth capacity.

SUMMARY

Fabrinet (FN +3.26%) management emphasized that "demand is very strong across all the segments" according to Seamus Grady and described current conditions as "an unusual time" according to Seamus Grady with sustainable growth across multiple product categories. Direct commentary confirmed that DCI, datacom, and HPC are all "very strong" contributors for upcoming quarters, with new customer wins and expanding programs cited as incremental drivers. Management provided strategic clarity by introducing HPC as a distinct and growing revenue category, stating it will become more significant over time and revealing ongoing efforts to secure additional HPC customers.

  • Seamus Grady underscored that growth was "fairly broad-based and nicely spread between customers," specifically noting that telecom growth was not concentrated in any one customer or product.
  • Complex, ongoing component supply constraints remain, but management asserted, "we do think it will resolve itself," according to Seamus Grady and flagged "another quarter or two of tight supply" according to Seamus Grady as expected.
  • Capital allocation continues to prioritize future capacity expansion, especially for Building 10, with buybacks proceeding at a reduced pace via the 10b5 plan.
  • Csaba Sverha indicated that the company expects "revenue to be up sequentially in all of the major markets we serve, except automotive."
  • Management clarified that the sequential growth guide is not ranked by expected dollar contribution, but all major segments (DCI, datacom, HPC) are poised for strong performance.

INDUSTRY GLOSSARY

  • Data Center Interconnect (DCI): Optical networking solutions enabling high-speed connections between geographically distributed data centers, supporting cloud and AI-driven workloads.
  • High-Performance Computing (HPC): Computing systems and solutions designed for intensive workloads in fields such as AI, advanced modeling, and data analytics; often a distinct product category within electronics manufacturing.
  • Merchant Transceiver: Industry term for optical transceiver products not designed in-house by the end customer but sourced as standard products from third-party manufacturers.

Full Conference Call Transcript

We will begin the call with remarks from Seamus and Csaba, followed by time for questions. I would now like to turn the call over to Fabrinet's Chairman and CEO, Seamus Grady. Seamus?

Seamus Grady: Thank you, Garo. Good afternoon, everyone, and thanks for joining our call today. We had an exceptional start to fiscal 2026, with record revenue and earnings that exceeded our guidance ranges and demonstrated our continued business momentum. First quarter revenue was $978 million, an impressive increase of 22% from a year ago and an increase of 8% from Q4. Non-GAAP earnings were also outstanding at $2.92 per share, with our revenue upside flowing directly to the bottom line. In addition to these terrific first quarter results, we are very optimistic that this strong momentum will extend into the second quarter, with numerous revenue drivers contributing to our growth.

Now let's look at the quarter in more detail, starting with Optical Communications. Telecom revenue hit a new record, increasing 59% from a year ago, driven primarily by data center interconnect products, and 15% from Q4. Within telecom, DCI revenue nearly doubled from a year ago to 14% of company revenue. Datacom revenue declined sequentially as predicted, but by a smaller amount than we anticipated. This was the result of a smaller sequential decline than expected at our biggest datacom customer, as well as larger contributions from other datacom customers where we are gaining traction. While we believe certain component constraints will persist into the second quarter, we remain optimistic about overall demand trends in datacom.

Within non-optical communications, we are excited to introduce a new revenue category for high-performance computing products. In Q1, we qualified and started to ramp our first HPC program, which contributed $15 million to revenue. We believe this program will scale considerably in the coming quarters and become a significant driver to our overall growth. Automotive revenue was down slightly from Q4, as anticipated, and industrial laser revenue was flat. With numerous growth drivers supporting our confidence, construction of Building 10, which will total 2 million square feet, remains on track for completion by the end of calendar 2026.

We have accelerated the construction of a portion of Building 10, which we expect to be completed in mid-2026, in order to help ensure that we will have ample capacity to support our rapid growth. As we look to the second quarter, we are very optimistic that we can deliver another outstanding quarter, with continued growth in telecom driven by DCI expansion, strong datacom demand, and the rapid scaling of our HPC program. In summary, we are off to an excellent start in fiscal year 2026, with record first quarter results that exceeded our guidance ranges. With multiple growth drivers across our business producing increased business momentum, we are well-positioned to deliver an outstanding second quarter.

Now I'd like to turn the call over to Csaba for more financial details on our first quarter results and our outlook for the second quarter.

Csaba Sverha: Thank you, Seamus, and good afternoon, everyone. Fiscal year 2026 is off to an excellent start, with revenue and EPS that were above our guidance ranges. Revenue in the first quarter was a new record $978 million, representing impressive growth of 22% from a year ago and 8% from Q4. Non-GAAP EPS was also a record $2.92, including the impact of a $2 million or $0.06 per share FX evaluation loss. Looking at revenue performance by market for the first quarter, Optical Communications revenue was $747 million, up 19% from a year ago and 8% from Q4. Within optical communications, telecom revenue grew to a record $412 million, surging 59% from a year ago and 15% from Q4.

This impressive growth was driven primarily by continued strong demand trends for data center interconnect products. In the first quarter, DCI revenue was $138 million, representing remarkable growth of 92% from a year ago and 29% from Q4. Datacom revenue declined by a smaller amount than expected, totaling $273 million, down 17% from a year ago and 1% from Q4. While we continue to experience longer lead times for one critical component in particular, overall demand trends within Datacom remain strong. Non-optical communications revenue was $231 million, up 30% from a year ago and 5% from Q4. This increase was driven primarily by high-performance computing revenue of $15 million.

We expect this new revenue category to drive even greater growth in Q2. Automotive revenue of $122 million was up 19% from a year ago, but down 5% from Q4. Industrial laser revenue of $40 million was up 12% from a year ago and flat sequentially. As I discuss the details of our P&L, all expense and profitability metrics will be presented on a non-GAAP basis unless otherwise noted. First quarter gross margin of 12.3% was down 30 basis points from Q4, but was in line with expectations as we absorbed FX headwinds in addition to the seasonal impact of annual merit increases. This small sequential decrease in gross margin was partially offset by our continued operating leverage.

Operating expenses were $16 million or 1.7% of revenue, resulting in an operating margin of 10.6%, a 10 basis point decline from the fourth quarter. Interest income was $9 million in Q1 and was partially offset by a $2 million foreign exchange evaluation loss. The effective GAAP tax rate was 5.4%, consistent with expectations. Non-GAAP net income was $105 million, or $2.92 per diluted share. Turning to our balance sheet, we ended the first quarter with cash and short-term investments of $969 million, up $35 million from the end of Q4. Operating cash flow in the quarter was $103 million.

Capital expenditures of $45 million remained above maintenance CapEx levels as construction of Building 10 progresses, including the acceleration of a portion of the facility. In the first quarter, our share repurchase program was not as active as in recent quarters. We repurchased 970 shares at an average price of $276 per share for a total cash outlay of $268,000. As of the end of the first quarter, $174 million remained available for repurchase. Now turning to our Q2 guidance, we expect our strong business momentum to extend into the second quarter, with multiple growth drivers across our business.

We expect revenue to be up sequentially in all of the major markets we serve, except automotive, which we expect to be flat to slightly down. Most notably, we anticipate particularly strong growth in HPC as that program continues to ramp quickly. As a result, we anticipate second quarter revenue to be in the range of $1.05 billion to $1.1 billion, representing remarkable growth of 29% from a year ago at the midpoint. From a profitability standpoint, we expect to maintain operating leverage, with revenue growth outpacing operating expenses this quarter. However, some of these gains may be partially offset by foreign exchange headwinds. Therefore, we anticipate earnings per diluted share to be between $3.05 and $3.30.

In summary, we are extremely excited about our robust start to the fiscal year. We are optimistic that we can continue to build on this momentum in the second quarter as we benefit from multiple growth drivers across our business. Operator, we are now ready to open the call for questions.

Operator: Thank you. To ask a question, please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. In fairness to all, we ask that you please limit yourself to one question and one follow-up before re-queuing for additional questions. Please stand by while we compile our Q&A roster. Our first question will come from the line of Karl Ackerman with P and B Perrybosch. Your line is open. Please go ahead.

Karl Ackerman: Yes. Thank you. Congrats on the quarter, gentlemen. For my first question, what is embedded in your December outlook for datacom? And as you address that, what are your assumptions on having access to necessary 200 gig per lane email wage capacity to support that growth?

Seamus Grady: Thank you, Karl. So we're not really going to comment on individual components or individual customers at this stage. I think what we would say is, you know, we're in the very early stages, really, of a generational transition to photonics that we've seen going on for some time. Fabrinet is really ideally positioned to continue to capitalize on this transition. You know, we manage a lot of complexity for our customers. And, you know, as we've seen, growth doesn't always happen in a straight line. But, you know, for any company, I think the best predictor of future performance is past performance.

And if you look at our over any time horizon, you care to look at our ten-year history, the revenue we had compounded annual revenue growth of 16%. We compounded the earnings 21% over that same ten-year horizon. Last year, revenue grew 19%. Last quarter, revenue grew 22%. And as Csaba said, at the midpoint of our guidance for this quarter, we're projecting to grow 29%. So, you know, really, Karl, our objective is to make sure we have enough, if you like, irons in the fire and enough customer opportunities in front of us that we can continue to deliver that kind of outsized growth. We're quite excited about this period that we find ourselves in the middle of.

We think we're ideally positioned, and we're just going to, you know, we're going to continue to keep pushing ahead, you know, winning those opportunities and executing on them so that we continue to grow in the future the way we have done so in the past.

Karl Ackerman: Yep. Yep. Thank you for that, Seamus. If I may address, if I may ask one more, you refer to your HPC program as your first HPC program in your prepared remarks. When you know this business will scale considerably, does that take into account any other customer engagements or discussions for other HPC programs? With new or existing customers? Thank you.

Seamus Grady: Yeah. I think, you know, HPC for us, we decided to break it out as a separate category for a couple of reasons, really. One is a practical one. It doesn't fit neatly into any of the other categories that we have, so it's not telecom. It's not datacom. It's data center. It's not communications. So we decided to call it, you know, to break it out into its own category. And, of course, the other reason we decided to do it was we're quite optimistic about this segment or category as an area for us to really expand and continue to grow. You know, it's early days, but our initial foray into this category is going very well.

It takes a little bit of time to get off the ground. These are, again, these are complex products. There's a qualification process that has to be gone through. You know, we're working with our customer, you know, making sure we have a very efficient, highly automated process in place. And that's going very well. The customer is very happy. Business is growing nicely. And we really just got the business kicked off last quarter. We got the qualification bills done. And really just started to ship products towards the tail end of the quarter. And we'll continue to see that category grow for us nicely over the next while.

There are certainly other opportunities that we're pursuing there in that area. But it's early days yet. But, yeah, we would be optimistic that, you know, at some point in the future, we will have more than one customer in that category. We will have multiple growth vectors, like we have in all of the markets we serve. So, yeah, we think it's, yeah, it's the first customer, but we hope not the only one. There's others we're working on.

Karl Ackerman: Thank you.

Seamus Grady: You're welcome.

Operator: One moment for our next question. Our next question will come from the line of Samik Chatterjee with JPMorgan. Your line is open. Please go ahead.

Samik Chatterjee: Yeah. I think they're ramping differently. I would say they're very different products. If you look at the high-performance compute product, it's an existing product that's already up and running with very high demand. And, you know, we're one of a number of suppliers producing the product, so we're just getting going with that. The telecom, the new telecom program that you mentioned, that's a new product. So, you know, now they both end up growing at a certain trajectory, but the other one is a new product. So the product has to grow in the market, and then obviously, we'll grow as that product grows in the market.

The HPC product, I think, you know, it gets off to a fairly slow, a reasonably slow start because it's quite a complex product, and there's a lot to be bedded down in terms of automation, etcetera. But we're pretty confident that we should see some very strong growth in that in the short to medium term. So they're both strong growth drivers for us.

None of these products grow in a straight line, and part of what we provide for our customers is that flexibility to manage a slow, steady growth if it's a new product and maybe slightly more steep when we're maybe transferring from another supplier or as we've seen in the past when you have completely outsized growth, we can also cope with that. So we take the good with the bad. None of these programs, like I say, none of them grow in a straight line. So we're, you know, we're just focused on making sure we execute in a very strong way for our customers, you know, excellent delivery, excellent quality. And at a very competitive cost.

That's our focus.

Samik Chatterjee: Roughly to a...

Seamus Grady: Yeah. I would say it's possible, but not advisable for us to do that. You know, obviously, we have a plan at the start of the quarter, have a plan right now. We're at, call it, coming up on the midpoint of the quarter. So we have a fair idea how we think the quarter will shake out. And we have some, you know, we still have some very strong growth drivers. We have the HPC program that we talked about. We have the new telecom product that we're ramping. We have DCI generally, is very strong for us. Datacom was also quite strong. Stronger than we had thought going into the quarter. We did a little bit better.

Bit better than we thought we would do. And then there's a lot of other growth factors that were growth drivers that were working very hard to secure and to win. So, you know, lots of opportunities, and it's really a case of there's certainly no shortage of demand right now. We're not in any way demand constrained. It's a case of just executing and making sure we capture everything that's out there and deliver on it for our customers. So yeah, I think HPC will be a significant growth driver, but the others will as well.

Samik Chatterjee: DCI...

Seamus Grady: The new programs in telecom, and then other projects that we're working on in datacom as well. They would be the three main areas.

Samik Chatterjee: Thank you so much.

Operator: Thank you. And one moment for our next question. Our next question comes from the line of Mike Genovese with Rosenblatt Securities Inc. Your line is open. Please go ahead.

Mike Genovese: Thanks. When you look at the telecom growth sequentially, about 15 percent, $60 million-ish, was it how many customers were really a significant driver of that sequential growth?

Seamus Grady: Well, the number of customers might be that. I mean, if you look at what's in our telecom, it's, you know, traditional telecom and also DCI if you had to kind of break it into two broad areas. Both of which are growing nicely for us. So there's a good mix of customers. It didn't come from any one customer or any one product. It's a mix of, you know, DCI, traditional telecom, and also some of the new wins that we've been working on. So it's fairly broad-based and nicely spread between customers.

Mike Genovese: Great. And then on Datacom, you mentioned other customers besides the main transceiver one. Could you talk both about, you know, the kind of datacom customers and products that are contributing to revenue now? And as well as, you know, any upcoming projects that you hope to win, you know, if there's anything likely. What kind of customers and products should we be looking at?

Seamus Grady: There's really a few that we've talked about, you know, in the past, I guess, our biggest driver of datacom revenue is our big customer there in the datacom space. We continue to do very well with them. They're launching, you know, new products, and we're supplying those for them. But we're also working on several other opportunities in that space. So one is hyperscale direct, where we would be supplying to hyperscalers with the product directly. That's not our design. It would be the hyperscalers' design. So we're working on that.

And the other one would be some of the merchant transceiver manufacturers that we're also working on, where in some cases, you know, you have to convince the customer to outsource and also to outsource to Fabrinet. So it's a double sell. But we're, you know, we're working on all of those. Nothing to announce yet at this stage. These things take time. I mean, typically, in our business, you know, Mike, it can take from when you engage with a customer who has a real opportunity until you're shipping something. It's generally an eighteen-month kind of gestation period. So it does take time.

It might look like these are quick wins and that everything is always up and to the right, but I can tell you there's an awful lot of work that goes on behind the scenes to win these opportunities. So, several, I would say, several irons in the fire on all of those fronts that I mentioned. But nothing specific to report at this stage. And we generally won't report until, you know, on particular customers until we get to the end of the fiscal year, and we talk about our 10% customers. Outside of that, we generally tend to steer clear of giving too much specifics on the individual customer opportunities we're pursuing.

Mike Genovese: Alright. But just quickly, on the revenue that you have now outside of the biggest customer, is that mostly the merchant type of stuff? Or is it something else?

Seamus Grady: It's mostly merchant outside of the biggest customer. Yeah. It will be mostly merchants.

Mike Genovese: Let's say, non-NVIDIA.

Seamus Grady: Transceiver business and other datacom products that we're making.

Mike Genovese: Thanks so much.

Seamus Grady: Thanks, Mike.

Operator: Thank you. And one moment for our next question. Our next question comes from the line of George Notter with Wolfe Research. Your line is open. Please go ahead.

George Notter: Hi. Thanks a lot. I was just curious about the share repurchase. I noticed you didn't buy many shares back for this quarter. I'm just curious if there was something to that. Is it just capital going into the manufacturing expansion or some other thing that's driving your decisions there? And then separately, I would just love to drill down into the manufacturing and expansion a little bit more deeply. From memory, I think the expansion was several 100,000 square feet. Can you just remind us kind of what the update there is? Or is it as you envisioned three months ago, or has there been any change to that? Thanks a lot.

Csaba Sverha: Hi. I'll take the share purchase questions, George. So our buyback last quarter was driven by our 10b5 plan, which is, as you know, automated and depending on price tiers that we set up initially. And that plan is going in place for one year, so we haven't changed on that. With regards to overall capital allocation strategy, as you have pointed out, our main focus still remains in investing in our future growth. That obviously includes working capital as well as building time capacity additions. So we did have an outsized capital spend in the last quarter, but that has nothing to do with the share repurchase activities. So again, repurchase was done by the 10b5 plan.

And we remain committed to returning the surplus cash we generate to shareholders through a 10b5 on an open market. We were not active in the open market. Nevertheless, we still have a 10b5 in place, which we continue to...

George Notter: And then just as a follow-on there, I'm sorry. Did I hear you say you intend to change that going forward? Is that right?

Seamus Grady: I think we're having trouble hearing you.

George Notter: Guys, can you hear me? Hello?

Seamus Grady: We can hear you. Can you hear me?

George Notter: We're having trouble hearing you. I can hear you.

Seamus Grady: Yeah. Csaba, can you hear? Is that alright? Your answer...

Csaba Sverha: Oh, I'm sorry. My line must have dropped. So sorry about it. So our share repurchase was driven by a 10b5 plan. Last quarter, we didn't participate in the open market last quarter. So the repurchases were triggered through the 10b5 plan. Our capital allocation remains around our priority remains to invest in our future growth. So including working capital and CapEx investment. So our CapEx throughout the quarter was higher than our maintenance CapEx level driven by Building 10. Which we are pulling in a portion of the building will be a 2 million square feet facility. And should add in approximately about $2.4 billion revenue, give or take, for the future.

And we are, as communicated earlier, we are pulling a portion of that building into our June to have that space available.

George Notter: Got it. So I assume that incremental space that you're expecting is the same as you were looking to do three months ago? I guess that's my question.

Csaba Sverha: That's correct.

Operator: Thank you. And one moment for our next question. Our next question is going to come from the line of Ryan Coons with Needham and Company. Your line is open. Please go ahead.

Ryan Coons: Great. Thank you. Want to ask about DCI in particular and, you know, obviously, that's getting boosted here, shift from cloud to AI in...

Seamus Grady: Infrastructure or higher attach rates for ZR. And my question for you is, from your discussions with customers, there's this concept of the distributed cluster to the power requirements, and you think that the distributed cluster due to power grids is already affecting your demand for ZR? Or do you think that's still to come?

Seamus Grady: I'm not sure, Ryan. I think, you know, for us, we honestly don't spend too much time trying to figure out the reasons for the demand when the demand is so strong, we generally focus most of our energy on just trying to fulfill it. But I think you may have a point as that need rolls out and continues to go, I think it should drive the need for more DCI, more 400 ZR and 800 ZR. So, yeah. But the exact reasons behind the strong growth, we don't spend too much time thinking about. We are too busy just trying to make sure we have everything in place and lined up to meet the demand.

Ryan Coons: Fair. Great execution. And on the non-DCI telecom, I know you might have touched on it briefly earlier, but several million sequentially. As you think about that growth, it was up, you know, is that mostly share or do you have any new wins in the mix there for the non-DCI telecom?

Seamus Grady: It's a little bit of both. So we've been continuing to, you know, chip away at our competitors and continuing to win business. It's primarily, I think, ramping, you know, ramping existing programs that we've won are kind of becoming existing programs at this point, but it's mostly newer programs that are ramping. Newer programs that we've won in recent times that we're ramping.

Ryan Coons: Helpful. Thanks so much.

Seamus Grady: Thank you, Ryan.

Operator: Thank you. And as a reminder, if you would like to ask a question at this time, please press one moment for our next question. Our next question comes from the line of Tim Savageaux with Northland Capital Markets. Your line is open. Please go ahead.

Tim Savageaux: Hey, good afternoon, and congrats on the results.

Seamus Grady: Thank you, Tim.

Tim Savageaux: And I think it was a couple of quarters ago, Seamus, where you'd made a reference to you talked about the 19% growth in fiscal 2025 and made a reference to the potential for accelerating growth in '26 and didn't have you quite there, but pretty close. Now you're guiding to 25% growth in the first half of the year. That certainly would represent acceleration. Is that, you know, in your mind?

Seamus Grady: It looks like a reasonable baseline for the year, but I wonder if you have any thoughts on maintaining or even accelerating that growth rate.

Seamus Grady: Yeah. I think as you rightly point out, you know, yeah, we had last year, we grew 19%. Last quarter, 22%. This quarter at the midpoint, as Csaba mentioned, we're projected to grow 29%. You know, we're just going to focus on executing. The demand is strong. I wouldn't want to put a number on what the growth would be for the full year because we don't guide for a full year. We only guide one quarter at a time. But yes, certainly we're quite optimistic about what's in front of us. You know, it's an unusual time. Demand is very strong. And it looks to be robust. Looks to be sustainable, and it's across multiple product categories and customers.

So our focus is on execution and hopefully delivering another quarter and hopefully another year of outsized growth. It's an exciting time. We're very positive about the trends we're seeing because, you know, as fast as we can build the products, the customers need them. The demand is very strong across all the segments that we service. So we hope it continues on for a long time.

Tim Savageaux: Great. And I'm going to take another crack at this kind of the composition of the sequential guide. I think you did in your prepared comments mention, you know, DCI, Datacom, and HPC. I don't know if there was any rhyme or reason to that ordering. But should that be, could that be interpreted as kind of the relative demand drivers maybe on an absolute dollar basis? Or is that just...

Seamus Grady: Alphabetical list? Okay. Yeah. Datacom, DCI, HPC. It's just alphabetical, Tim. I'm joking. There's no particular order to that. I wouldn't read too much into that. It's just, you know, it's probably more likely that sequentially, as we think through the numbers, you know, we kind of tend to focus on telecom first. That's where the, if you like, the origin of the company, then Datacom has become a much bigger part of our revenue, and then HPC is more recent. So it's probably more to do with it's the sequence in which each of the categories has grown, frankly. But all three of those look to be very strong.

You know, DCI is just, it's been a fantastic set of products for us and customers. Of course, Datacom is great for everybody, and then HPC. So I wouldn't read too much into the ordering of those, Tim.

Tim Savageaux: Fair enough. And last one for me. I know you commented on it. But I guess you mentioned some of the component shortages are still there. Can you say whether that's improving at all? Or looks to be? And is that part of your maybe fairly strong guidance for Datacom in December?

Seamus Grady: No. I mean, I think these issues always have a way of resolving themselves or of getting resolved. You know, there are times when you look out to the future and if you're kind of hosed in terms of component supply, but you have to make certain assumptions and take certain actions. And, you know, generally, our customers and our own team working with the supply base generally do a very, very good job of making sure we get what we need. In the end, even if in the beginning, it doesn't look like we're going to get what we need. So I think it is improving.

You know, there are certain component categories that are just in, you know, extremely tight supply. But, you know, fortunately, we have some pretty, you know, blue-chip type customers who tend to get their share and sometimes their unfair share of the available components. So it's not something we're overly concerned about. And we do think it will resolve itself as the component suppliers ramp up additional capacity. It does take time to add capacity, especially for these complex components. But so I think it will improve, Tim. But there's probably another, you know, another quarter or two of tight supply, but in the end, I think we'll get what we need.

Tim Savageaux: Thanks very much.

Seamus Grady: Thank you, Tim.

Operator: Thank you. And I would now like to turn the conference back over to Seamus Grady for closing remarks.

Seamus Grady: Thank you for joining our call today. We are excited by our first quarter performance with record results that exceeded our guidance ranges. We're also optimistic that we can deliver an even stronger second quarter with multiple growth drivers as we continue to expand our market leadership. We look forward to speaking with you in the future and to seeing those of you who will be attending the JPMorgan Tech Conference in Asia and the Needham Conference in November, as well as the Barclays and Northland Conferences in December. Goodbye.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.