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Operating Segments and Geographic Information
 6 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Operating Segments and Geographic Information
Note 19. Operating Segments and Geographic Information
The Company evaluates its reportable segments in accordance with the authoritative guidance on segment reporting. The Company’s CODM uses operating segment financial information to evaluate segment performance and to allocate resources.
The Company’s reportable segments are:
(i) Network Enablement (NE):
NE provides an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. These solutions include instruments, software and services to design, build, turn-up, certify, troubleshoot and optimize networks. NE also offers a range of product support and professional services such as repair, calibration, software support and technical assistance for its products. NE’s avionics products provide test and measuring solutions for aviation, aerospace, government, defense, communications and public safety.
(ii) Service Enablement (SE):
SE provides embedded systems and enterprise performance management solutions that give global communications service providers, enterprises and cloud operators visibility into network, service and application data. These solutions - including instruments, microprobes and software - monitor, collect and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization.
(iii) 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, consumer electronics, industrial, government and automotive markets.
Segment Reporting
The CODM manages the Company in two broad business categories: Network and Service Enablement (NSE) and OSP. The CODM evaluates segment performance of the NSE business based on the combined segments (NE and SE) gross and operating margins. Operating expenses associated with the NSE business are not allocated to the individual segments within NSE, as they are managed centrally at the business unit level. The CODM evaluates segment performance of the OSP business based on segment operating margin. 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, acquisition-related charges, amortization of intangibles, restructuring, impairment of goodwill, non-operating income and expenses, changes in fair value of contingent consideration liabilities, 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 “Other Items” 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 December 28, 2024 and December 30, 2023 (in millions):
Three Months Ended December 28, 2024
Network and Service Enablement
 Network EnablementService EnablementNetwork and Service EnablementOptical Security and Performance Products
Other Items (1)
Consolidated GAAP Measures
Product revenue$146.9 $7.9 $154.8 $70.9 $— $225.7 
Service revenue32.1 13.0 45.1 — — 45.1 
Net revenue$179.0 $20.9 $199.9 $70.9 $— $270.8 
Gross profit$115.4 $14.1 $129.5 $35.9 $(4.6)$160.8 
Gross margin64.5 %67.5 %64.8 %50.6 %59.4 %
Operating income$17.4 $23.0 $(18.2)$22.2 
Operating margin8.7 %32.4 %8.2 %
Three Months Ended December 30, 2023
Network and Service Enablement
 Network Enablement Service Enablement Network and Service EnablementOptical Security and Performance Products
Other Items (1)
Consolidated GAAP Measures
Product revenue
$125.2 $10.8 $136.0 $74.9 $— $210.9 
Service revenue
30.3 13.3 43.6 — — 43.6 
Net revenue$155.5 $24.1 $179.6 $74.9 $— $254.5 
Gross profit$97.2 $16.6 $113.8 $39.0 $(4.8)$148.0 
Gross margin62.5 %68.9 %63.4 %52.1 %58.2 %
Operating income$6.4 $27.3 $(11.3)$22.4 
Operating margin3.6 %36.4 %8.8 %
(1)See below table for details of reconciling items impacting gross profit and operating income.
Three Months Ended
 December 28, 2024December 30, 2023
Corporate reconciling items impacting gross profit:
Total segment gross profit$165.4 $152.8 
Stock-based compensation(1.3)(1.2)
Amortization of intangibles(3.3)(3.4)
Other charges unrelated to core operating performance (1)
— (0.2)
Total reconciling items(4.6)(4.8)
GAAP gross profit$160.8 $148.0 
Corporate reconciling items impacting operating income:
Total segment operating income$40.4 $33.7 
Stock-based compensation(13.7)(12.5)
Amortization of intangibles(4.3)(4.8)
Change in fair value of contingent liability3.9 7.0 
Acquisition and integration related charges(2.8)(0.6)
Other charges unrelated to core operating performance (1)
(0.1)(0.5)
Restructuring and related (charges) benefits(1.2)0.1 
Total reconciling items(18.2)(11.3)
GAAP operating income from continuing operations$22.2 $22.4 
(1)Other items include charges unrelated to core operating performance primarily consisting of transformational initiatives such as site consolidations, intangible impairment and gain or loss on disposal of long-lived assets.

The following tables present information on the Company’s reportable segments for the six months ended December 28, 2024 and December 30, 2023 (in millions):
Six Months Ended December 28, 2024
Network and Service Enablement
 Network EnablementService EnablementNetwork and Service EnablementOptical Security and Performance Products
Other Items (1)
Consolidated GAAP Measures
Product revenue$259.5 $14.0 $273.5 $149.7 $— $423.2 
Service revenue61.1 24.7 85.8 — — 85.8 
Net revenue$320.6 $38.7 $359.3 $149.7 $— $509.0 
Gross profit$201.7 $24.9 $226.6 $79.5 $(9.2)$296.9 
Gross margin62.9 %64.3 %63.1 %53.1 %58.3 %
Operating income$10.1 $54.2 $(30.6)$33.7 
Operating margin2.8 %36.2 %6.6 %
Six Months Ended December 30, 2023
Network and Service Enablement
 Network Enablement Service Enablement Network and Service EnablementOptical Security and Performance Products
Other Items (1)
Consolidated GAAP Measures
Product revenue$245.6 $18.5 $264.1 $152.4 $— $416.5 
Service revenue59.9 26.0 85.9 — — 85.9 
Net revenue$305.5 $44.5 $350.0 $152.4 $— $502.4 
Gross profit$191.8 $30.3 $222.1 $79.7 $(9.4)$292.4 
Gross margin62.8 %68.1 %63.5 %52.3 %58.2 %
Operating income$7.9 $56.6 $(26.1)$38.4 
Operating margin2.3 %37.1 %7.6 %
(1)See below table for details of reconciling items impacting gross profit and operating income.

Six Months Ended
 December 28, 2024December 30, 2023
Corporate reconciling items impacting gross profit:
Total segment gross profit$306.1 $301.8 
Stock-based compensation(2.5)(2.4)
Amortization of intangibles(6.6)(6.9)
Other charges unrelated to core operating performance (1)
(0.1)(0.1)
Total reconciling items(9.2)(9.4)
GAAP gross profit$296.9 $292.4 
Corporate reconciling items impacting operating income:
Total segment operating income$64.3 $64.5 
Stock-based compensation(26.4)(23.7)
Amortization of intangibles(8.7)(10.4)
Change in fair value of contingent liability7.4 8.4 
Acquisition and integration related charges(3.4)(0.6)
Other benefits (charges) unrelated to core operating performance (1)(2)
0.4 (0.7)
Litigation settlement1.3 — 
Restructuring and related (charges) benefits(1.2)0.9 
Total reconciling items(30.6)(26.1)
GAAP operating income from continuing operations$33.7 $38.4 
(1)Other items include (charges) benefits unrelated to core operating performance primarily consisting of transformational initiatives such as site consolidations, intangible impairment and gain or loss on disposal of long-lived assets.
(2)Included in the six months ended December 28, 2024 is a gain of $0.9 million on the sale of assets previously classified as held for sale.
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 and six months ended December 28, 2024 and December 30, 2023 (in millions):
 Three Months Ended
 December 28, 2024December 30, 2023
Product RevenueService RevenueTotalProduct RevenueService RevenueTotal
Americas:
United States$83.6 $14.9 $98.5 $68.6 $16.1 $84.7 
Other Americas13.7 3.9 17.6 14.6 3.8 18.4 
Total Americas$97.3 $18.8 $116.1 $83.2 $19.9 $103.1 
Asia-Pacific:
Greater China$47.7 $2.7 $50.4 $45.9 $1.5 $47.4 
Other Asia-Pacific34.8 8.4 43.2 24.9 7.2 32.1 
Total Asia-Pacific$82.5 $11.1 $93.6 $70.8 $8.7 $79.5 
EMEA:$45.9 $15.2 $61.1 $56.9 $15.0 $71.9 
Total net revenue$225.7 $45.1 $270.8 $210.9 $43.6 $254.5 
 Six Months Ended
 December 28, 2024December 30, 2023
Product RevenueService RevenueTotalProduct RevenueService RevenueTotal
Americas:
United States$142.0 $29.5 $171.5 $136.2 $31.3 $167.5 
Other Americas25.4 7.9 33.3 28.3 7.8 36.1 
Total Americas$167.4 $37.4 $204.8 $164.5 $39.1 $203.6 
Asia-Pacific:
Greater China$100.3 $3.9 $104.2 $95.3 $3.2 $98.5 
Other Asia-Pacific61.0 14.3 75.3 53.2 13.7 66.9 
Total Asia-Pacific$161.3 $18.2 $179.5 $148.5 $16.9 $165.4 
EMEA:$94.5 $30.2 $124.7 $103.5 $29.9 $133.4 
Total net revenue$423.2 $85.8 $509.0 $416.5 $85.9 $502.4