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- **Revenue Growth**: Q1 revenue $299.1M (+25.6% YoY), driven by NSE (35.5% YoY) and Spirent acquisition.
- **Margin Expansion**: Operating margin 15.7% (vs. 9.8% prior year), EPS $0.15 (+$0.09 YoY).
- **Strategic Shift**: NSE now 40% of revenue, data center 40%, reducing reliance on service providers.
- **Spirent Impact**: Adds $200M annual revenue, 0.08-0.10 EPS accretion by FY26.
- **Growth Drivers**: AI data centers, aerospace/defense, and professional-grade fiber operators.
- **Risk**: Wireless segment softness may persist.

**【Management Opening Remarks】**
- Vibhuti Nayar provided an overview of the call, emphasizing forward-looking statements and non-GAAP results (excluding revenue). She highlighted the availability of earnings slides and the recording.

**【CFO Financial Commentary】**
- **Revenue Performance**: Q1 net revenue of $299.1M exceeded the high end of guidance ($290M-$298M), up 3% sequentially and 25.6% YoY.
- **Margins**: Operating margin of 15.7% (vs. 14.6%-15.4% guidance), up 130 bps QoQ and 570 bps YoY. EPS of $0.15 (vs. $0.13-$0.14 guidance), up $0.02 QoQ.
- **Segment Breakdown**: 
  - **NSE**: $216M revenue (up 35.5% YoY), driven by data center and aerospace/defense. Gross margin 63% (up 210 bps YoY). Operating margin 7.5% (vs. -4.6% prior year).
  - **OSP**: $83.1M revenue (up 5.5% YoY), gross margin 52.3% (down 300 bps YoY). Operating margin 37.1% (vs. 38.1%-38.5% guidance).
- **Cash Flow & Balance Sheet**: Cash of $549.1M (up from $429M). Refinanced $250M convertible notes, repurchased $30M in shares.
- **Q2 Guidance**: Revenue $360M-$370M, EPS $0.18-$0.20. NSE revenue $283M-$293M (incl. Spirent $45M-$55M). Operating margin 17.9% ±60 bps.

**【CEO Strategic Update】**
- **NSE Growth**: 35% YoY driven by data center (AI build-out, 800G/1.6T test equipment) and aerospace/defense. Acquired Spirent adds $200M annual revenue, strengthening data center ecosystem.
- **Market Momentum**: Continued demand for lab/production/test equipment. Aerospace/defense growth expected. Service provider segment stable but offset by wireless softness.
- **Future Outlook**: Q2 NSE growth driven by data center and Spirent. OSP expected to decline QoQ due to seasonal anti-counterfeiting/3D sensing.

**【Q&A Highlights】**
- **Revenue Mix**: NSE now 40% (vs. 30% prior), data center 40%, aerospace/defense 15%. Diversification reduces reliance on service providers.
- **Data Center Demand**: Strong field instrument sales to hyperscalers, production/test equipment for AI data centers. Spirent's AI-RAN testing adds $0.08 EPS accretion.
- **Margins & Integration**: NSE operating margin expected to expand with Spirent. OSP margin challenges due to product mix.
- **Wireless Recovery**: Potential catalyst for growth, but still lagging.
- **Aerospace/Defense**: Inertial navigation systems seeing broad adoption (drones, autonomous vehicles).


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