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Operating Segments and Geographic Information
 3 Months Ended
Sep. 28, 2024
Segment Reporting [Abstract]  
Operating Segments and Geographic Information
Note 15. Operating Segments and Geographic Information
Our chief executive officer is our Chief Operating Decision Maker (“CODM”). The CODM allocates resources to the segments based on their business prospects, competitive factors, segment net revenue and segment profit. The CODM regularly reviews operating results to make decisions about resources to be allocated to the segments and to assess their performance.
Segment profit includes operating expenses directly managed by operating segments, including research and development, and direct sales and marketing expenses. Segment profit does not include stock-based compensation, acquisition or integration related costs, amortization and impairment of acquisition-related intangible assets, restructuring and related charges, and certain other charges. Additionally, we do not allocate corporate marketing and strategic marketing expenses and general and administrative expenses, as these expenses are not directly attributable to our operating segments.
We do not track all of our property, plant and equipment by operating segments. The geographic identification of these assets is set forth below.
Cloud & Networking
Our Cloud & Networking products include comprehensive portfolio of optical and photonic chips, components, modules, and subsystems supplied to cloud data center operator, AI/ML infrastructure provider, and network equipment manufacturer customers who are building cloud data center and network infrastructures. Our products enable high-capacity optical links in cloud, AI/ML and DCI applications, and communications service provider networks, including products for access (local), metro (intracity), long-haul (city-to-city and worldwide) and submarine (undersea) network infrastructure. Our Cloud & Networking products also support network equipment manufacturers building enterprise network infrastructure, including SANs, LANs, and WANs. These products enable the transmission and transport of data, video, and audio over high-capacity fiber-optic cables. We maintain leading positions in these fast-growing cloud and networking markets through our extensive product portfolio, including high-speed optical components and transceivers, reconfigurable optical add/drop multiplexers (“ROADMs”), coherent dense wavelength division multiplexing (“DWDM”) pluggable transceivers, and tunable small form-factor pluggable transceivers. Demand for our Cloud & Networking products is driven by the continual growth in network capacity required for cloud computing and services, including for AI/ML, streaming video and video conferencing, wireless and mobile services, and IoT.
Industrial Tech
Our Industrial Tech products include short pulse solid-state lasers, kilowatt-class fiber lasers, ultrafast lasers, diode lasers, and gas lasers, which address applications in numerous end-markets. In the consumer end-market, our laser light sources are integrated into our customers’ 3D sensing cameras, which are used in mobile devices, payment kiosks, and other consumer electronics devices to enable applications including biometric identification, computational photography and virtual and augmented reality. In the automotive end-market, our lasers are used in our customers’ LiDAR and other optical sensor devices, which are increasingly being used in advanced driver assistance systems (“ADAS”) and in-cabin driver and occupant monitoring systems. In the industrial manufacturing end-market, our lasers are incorporated into our customers’ manufacturing machine tools used for the precision processing of materials in a range of industries including semiconductor device and microelectronics fabrication, electric vehicle and battery production, metal cutting and welding, and advanced manufacturing. Our products can also be used in the industrial end-market in imaging and sensing systems for process feedback and control, quality assurance, and waste reduction. Adoption of our products in the industrial end-market is driven by the needs of customers to advance semiconductor and microelectronics industry roadmaps, and by Industry 4.0/5.0 trends, including increasing manufacturing precision and flexibility and reducing waste and environmental impact. Demand for our products in the industrial end-market is driven by end-customer investments in manufacturing capacity. Our lasers also address certain semiconductor inspection and life-science applications.
Reportable Segments
The two operating segments, Cloud & Networking and Industrial Tech, also represent our two reportable segments. Our CODM allocates resources and evaluates segment performance based on segment revenue and segment profit. The following table summarizes segment profit and a reconciliation to the consolidated income (loss) before income taxes for the periods presented (in millions):
Three Months Ended
September 28, 2024September 30, 2023
Net revenue:
Cloud & Networking$282.3 229.7 
Industrial Tech54.6 87.9 
Net revenue
$336.9 $317.6 
Segment profit (loss):
Cloud & Networking$36.5 23.9 
Industrial Tech2.2 15.3 
Total segment profit38.7 39.2 
Unallocated corporate items:
Selling, general and administrative (1)
(28.7)(28.6)
Stock-based compensation
(35.6)(32.1)
Amortization of acquired intangibles
(41.7)(29.0)
           Acquisition related costs— (4.0)
Integration related costs
(3.4)(11.3)
Restructuring and related charges(9.7)(11.0)
Intangible asset write-off(1.9)— 
Other charges, net(0.1)(4.0)
Interest expense(5.5)(9.7)
Other income, net (2)
8.7 21.2 
Consolidated loss before income taxes$(79.2)$(69.3)
(1) We do not allocate selling, general and administrative expenses that are not directly attributable to our operating segments.
(2) Other income, net for the three months ended September 28, 2024 includes interest and investment income of $9.4 million, offset by foreign exchange and other gains, net of $0.7 million.
Other income, net for the three months ended September 30, 2023 includes $21.7 million of interest and investment income, offset by $0.5 million of net foreign exchange losses.
Concentrations
We operate in three geographic regions: Americas, Asia-Pacific, and EMEA (Europe, Middle East, and Africa). Net revenue is assigned to the geographic region and country where our product is initially shipped. For example, certain customers may request shipment of our 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 we operate in and net revenue from countries that generally represented 10% or more of our total net revenue (in millions, except percentage data):
 Three Months Ended
 September 28, 2024September 30, 2023
Amount% of TotalAmount% of Total
Net revenue:
Americas:
United States
$65.4 19.4 %$41.1 12.9 %
Mexico
33.9 10.0 23.7 7.5 
Other Americas
2.9 0.9 1.2 0.4 
Total Americas
$102.2 30.3 %$66.0 20.8 %
Asia-Pacific:
Hong Kong
$88.7 26.4 %$64.9 20.4 %
South Korea
8.8 2.6 25.0 7.9 
Japan16.9 5.0 25.4 8.0 
Thailand52.5 15.6 64.2 20.2 
Other Asia-Pacific
37.2 11.0 39.5 12.4 
Total Asia-Pacific
$204.1 60.6 %$219.0 68.9 %
EMEA$30.6 9.1 %$32.6 10.3 %
Total net revenue$336.9 100.0 %$317.6 100.0 %
During the three months ended September 28, 2024, two customers individually accounted for 15% and 12% of our total revenue, respectively. During the three months ended September 30, 2023, three customers individually accounted for 15%, 13% and 10% of our total net revenue, respectively. We had no other customers that represented 10% or greater of our total net revenue.
As of September 28, 2024, two customers individually accounted for 11% and 11% of gross accounts receivable, respectively. As of June 29, 2024, one customer individually accounted for 13% of gross accounts receivable. We had no other customers that represented 10% or greater of our gross accounts receivable.
Long-lived assets, namely property, plant and equipment, net, were identified based on the physical location of the assets in the corresponding geographic areas as of the periods indicated (in millions):
September 28, 2024June 29, 2024
Property, plant and equipment, net
United States
$126.5 $131.0 
Thailand
147.2 141.0 
Japan129.8 75.7 
United Kingdom88.0 83.8 
China90.3 85.7 
Other countries
56.6 55.3 
Total property, plant and equipment, net$638.4 $572.5 
We purchase a portion of our inventory from contract manufacturers that are located primarily in Thailand, Taiwan, and Malaysia. During the three months ended September 28, 2024, our net inventory purchases from a single contract manufacturer that represented 10% or greater of our total net inventory purchases were concentrated with one contract manufacturer, who accounted for 27% of the total net inventory purchases. During the three months ended September 30, 2023, our net inventory purchases from a single contract manufacturer that represented 10% or greater of our total net inventory purchases were concentrated with one contract manufacturer, who accounted for 45% of the total net inventory purchases.