A：In the third quarter, the core assets such as the data center, Lora, and PerSe strongly contributed to the revenue growth for CTEC.

A：CTEC has optimized its capital structure with a successful convertible offering and is accelerating investments in core technologies. The company is also focused on portfolio optimization and divestiture of non-core assets to generate balance sheet flexibility, resulting in nominal interest expenses and improved cash flow generation.

A：The outcome of the acquisition of the sensing business from Provo was the addition of advanced force sensing human-machine interface solutions and MA sensors, which are expected to be utilized in leading computing, phone, wearable, and automotive applications.

A：The data center business is performing well with net sales of $56.2 million, up 8% sequentially and up 30% year-over-year. For the next fiscal year, an acceleration of sequential and year-over-year growth for the data center business is expected, supported by continued increases in AI spending and strong demand for high-performance, low-power solutions.

A：The expectations for the 1.6 multi-mode optical transceivers and related components include the establishment of new performance standards in AI data centers, initial sampling of 1.6 LTO drivers and TIA before the end of the year, and a meaningful revenue contribution from PowerSaving Devices (PS) starting in the fourth quarter with growth into calendar 2026. CTEC is actively supporting customers on their 1.16 transceiver designs and deployments, and engagements with customers are intensive for future design wins.

A：In the high-end consumer end market, net sales for Q3 were $41.9 million, up 1% sequentially and 5% year-over-year, with year-to-date net sales of $118.5 million, up 6% compared to the same period last year. The market performance is outpacing market metrics such as worldwide handset unit volume drills by a considerable margin, demonstrating market share gain, customer adoption of differentiated solutions, and strong supply chain execution. The perSe sensing technology is being designed into a growing range of applications, supporting both existing designs and new launches over the coming quarters.

A：The recent achievements include Q3 industrial net sales of $147.2 million, up 3% sequentially and 12% year over year, driven by strong lowered performance in Laura enabled solutions. Additionally, net sales in the Q3 were $40 million, up 10% sequentially and 40% year over year, supported by continued expansion across several end markets.

A：The new lower flux transceivers enable faster transfer of video images and richer sensor data while maintaining ultra low power consumption, making it practical for commercial drones to transmit images and sensor data in real time over larger areas.

A：Recent developments include the completion of all necessary certifications for 5G Redcap modules, which are now commercially available, and the expansion of 5G standalone capabilities with support for network slicing for first responder networks on T Mobile's and Verizon's networks. Additionally, AI-powered support tools and a next generation management platform were launched, along with a strategic partnership with gtec for embedding Airlink connectivity into their rugged computing ecosystem.

A：The upcoming priorities include capturing growth opportunities in core assets through selective strategic investments, ensuring capacity availability against supply constraints, and focusing on the divestiture of non-core assets to address margin disparities and focus on core business priorities. Additionally, the company aims to strengthen its winning culture and elevate its company mindset.

A：The recently acquired force sensing portfolio is expected to integrate well into the company's sensing portfolio. The integration is anticipated to contribute positively to the company's financial performance, although typical seasonality in the high-end consumer end market may be partially offset. Market share gains are expected to play a role in the net sales from this end market. Additionally, the growth in the industrial end market is expected to be flat with lower decreases, but with growth in IoT systems and connectivity based on the expected product mix and net sales levels.

A：For the fourth quarter, the company expects net sales to be $273 million, plus or minus $5 million, representing a 9% year-over-year increase at the midpoint. The expected adjusted gross margin is 51.2%, plus or minus 50 basis points. The company's outlook reflects sequential mix changes in the industrial end market, with strong net sales growth anticipated from cellular modules in the IoT systems and connectivity business. The gross margin outlook for the total semiconductor products is expected to be 60.5%, plus or minus 50 basis points, which is up 220 basis points year over year at the midpoint.

A：The projected adjusted net income for the fourth quarter is $91.2 million, plus or minus $1 million, resulting in an adjusted operating margin at the midpoint of 17.8%. Adjusted EBITDA is expected to be $56 million, plus or minus $3 million, leading to an Adjusted EBITDA margin at the midpoint of 20.5%. The company expects adjusted interest and other expense net to be approximately $0.5 million, with an adjusted normalized income tax rate of 15%, consistent with the third quarter. These amounts are expected to result in adjusted diluted earnings per share of 43 cents, plus or minus 3 cents, based on a weighted average share count of 95.7 million shares.

A：The ACC technology is positioned advantageously between the limitations of the DataCenter (Da) in signal integrity at longer distances and the higher power consumption of the AEC. The ACC is uniquely positioned to capture a substantial portion of the market as hyperscalers deploy their services.

A：The contribution of ACC to the data center revenue is expected to be nominal in the near future, with the initial phase of revenue acceleration from the hyperscaler ramp being more pronounced.

A：The company expects positive semiconductor gross margins driven by data center and related products. The gross margins for the core portfolio of data center products are above the corporate average. There is an expectation that the growth in the core portfolio will continue to ramp and be accretive to gross margins. However, gross margins in the IoT systems and connectivity side are anticipated to be lower due to growth in cellular modules with lower margins. The company is looking at portfolio rationalization to address this.

A：Silicon germanium technology is crucial for making physical media devices like transceivers and drivers, and it is also used in silicon photonics. The company is prioritizing the availability of capacity for silicon germanium technology in collaboration with their foundry partner, with whom they have a long-standing relationship. The co-planning process with customers helps ensure product availability, and the lead time for wafers is typically six months.

A：LPO is anticipated to grow significantly in the Q4 with a meaningful contribution to the revenue. The company is excited about the opportunity to bring more content into transceivers with LPO, increasing the business size by 150%. LPO will cannibalize the DSP based solutions, but the growth will not happen overnight. The company is optimistic about the transition.

A：The company is seeing new applications and replacements for existing products in the ACC segment, such as solutions that replace AEC and also new applications for the data center. These new developments are expected to contribute positively to the revenue from the ACC segment.

A：LPO adoption is gradual as it relies on signal integrity on the hosts, whereas ACC is platform-based and offers significant power savings of 90% compared to AEC. ACC is expected to become mainstream for longer reach in the future due to its availability, especially for 200 Gb per lane.

A：The force sensing technology allows for broader capabilities in smart variable and computing applications, combining with capacitive sensing to offer enhanced functionalities for smart devices and automotive platforms.

A：The acquisition of the force sensing technology from CVO has been successfully integrated, and the first shipment of the product with the company's fulfillment infrastructure was made last week. The acquisition is expected to provide a healthy synergy and significant contribution to future revenue.

A：The acquisition has led to an increase in R&D and OPEX, but it is considered beneficial as buying the asset is more advantageous than internal investment for this technology. The impact is projected to be immaterial at this point, but the technology is expected to contribute positively to future revenue.

A：While some hyperscalers were mentioned in the previous quarter, the company is engaging with many more hyperscalers about using LPO technology, with conversations indicating that the technology is becoming a necessity across various platforms, rather than being optional.

A：The company is experiencing a more dedicated focus from potential acquirers and a more stable geopolitical situation, which has led to increased interest. Although the company cannot predict the exact timing, the divestiture is a top priority, and progress is being made towards executing the deal.

A：The fundamental solution for improving signal integrity in high-speed signals is to integrate a linear equalizer on the board.

A：The programs being ramped with the lead customer are all related to cables and are not chip on board programs.

A：Gross margins are expected to be under pressure over the next few quarters due to a mix shift towards modules and services. The primary driver for this change is the proportion of cellular modules and the router business within the company's offerings.

A：There is a consideration of divestiture regarding the lower gross margin portions of the business, but the exact impact on EPS is described as nominal or a modest impact, without detailing specific assets.

A：There are no current concerns about the reliability of ACC in earlier testing. There has been significant testing by hyperscalers through qualification and reliability testing, and no issues have been reported.