George Notter

Weeks redirected from bare-fiber pricing to value capture from innovations; acknowledged price is higher but declined to quantify increases.

Weeks said LTAs will be the overwhelming part of optical, though he gave no percentage figure for current coverage.

Schlesinger confirmed some 2026 CapEx is Meta-related but didn't disclose specific allocation. Corning uses multiple tools to derisk: upfront payments, take-or-pay mechanisms, refundable down payments. Some reduce reported CapEx, some flow through operating cash flow.

Weeks distinguished between long-standing carrier customers (not related to these product sets, will continue to be served excellently) and capacity-dedication agreements (seeking assured revenue streams against dedicated capacity for rapidly scaling customers).

Weeks acknowledged lead times are tight across SKUs. Actively working to improve as demand consistently exceeds supply capacity.

Weeks confirmed demand exceeds supply, putting Corning in a very tight position. In dialogues with customers about how to best configure manufacturing platform for the future. Expansion underway at Hickory.

Weeks confirmed room to grow into existing Optical capacity with utilization improvement driving incremental margins. Different components have different capacity positions.

Supply remains tight on new products. Corning accelerating ramp plans to meet growing demand.

Schlesinger confirmed hedging costs were kept very low using established tools. Over $2.5 billion in cumulative hedging gains generated over time.

Schlesinger declined to recast but explained price increases plus JPY120 rate should deliver same or better profitability. Offered to follow up offline.

Marc said tariffs are relatively neutral; a one-time Q3 tariff-refund accounting adjustment added about 70 basis points that will not recur.

Marc quantified expected price increases from high single digits to high teens/low twenties by product line, some selectively hitting backlog.

Gary emphasized balance between pricing, share gains, and long-term relationships. Mark added pricing is not off the table, also pursuing better cash conversion, stronger T&Cs, and non-cancelable purchase commits. Component cost increase conversations with customers are in early stages.

Gary confirmed continued WAN market share gains. Inside data center is a different competitive landscape with larger, different competitors. Ciena's strength is optical technology leadership as data centers optically transform.

Mark identified photonics and optical components as primary constraint. CapEx capacity investment up 50% YoY. Scott added Ciena's early demand visibility and vertical integration provide advantages over peers.

Gary confirmed lead times have extended across optical infrastructure but declined to quantify specifics. Expects lead times to potentially decrease by end of FY2026 as capacity investments come online.

Gary confirmed improved industry structure supports gross margin improvement. Mark outlined three-bucket approach: product design for cost reduction, supply chain optimization, and ensuring fair value exchange with customers.

Jim explained the mid-year OpEx cut included terminations and reduced hiring plans. FY2025 OpEx will be higher due to incentive comp normalization and merit increases.

Jim confirmed the heaviest-ever line system mix explains the gross margin guide. Positioned it positively as laying track for future higher-margin capacity adds.

Jim said internal transceiver demand absorbs all capacity, so external EML sales are not near-term, while a growing share of transceivers will use internal indium phosphide.

Anderson confirmed LTAs span both hyperscalers and systems manufacturers.

Anderson described 3-part LTA structure: upfront customer investment for CapEx, supply commitment from Coherent, and minimal demand commitment. Expects more LTAs to close soon.

Jim confirmed broad-based capacity expansion across transceiver assembly (Malaysia, Vietnam), DCI/telecom products, and components. Open to outsourcing for items without technical or cost advantage. Keeps InP insourced as world's only 6-inch producer.

Jim outlined parallel expansion and consolidation: 23 sites sold/exited over 5 quarters with more to come. Module capacity expanding at Ipoh, new Penang facility, and Vietnam site. Significant opportunity for further consolidation.

Jim deferred share disclosure to closer to ramp, noted only incremental capital needed from Coherent to support the business.

Jim confirmed multiyear partnership with revenue starting second half of calendar 2026 but deferred size quantification to closer to ramp. VCSELs manufactured at Sherman, TX.

Jim confirmed no significant tariff impact expected for Q3, highlighted geographic diversity and vertical integration as mitigation strengths. No signs of demand pull-forward.

Michael tied the AXT deal to a surge in ultra-high-power laser demand and said more substrate help may be needed if the demand vector continues.

Michael confirmed pivot to more contract manufacturing to supplement Nava Thailand. Clearing China factory footprint for high-value SKUs. Hired new back-end operations leader from Jabil. Wupen and new leader actively outlining contract manufacturing strategy from meetings in Thailand.

Michael confirmed LTA expansion to telecom product lines but noted resistance from some historical telecom customers. Pricing upside opportunity in telecom. Favorable treatment for partners who commit to LTAs, remaining volume allocated to non-committed customers.

Michael confirmed ongoing portfolio rationalization beyond prior metrology/x-ray closures. Part of fiscal year AOP with Wajid. Focus on cloud networking profitability and long-term growth.

Michael confirmed 3-floor building with first floor being outfitted. Capacity sufficient to meet demand and provide flexibility to move China production to Thailand. Expected online sometime next year.

Alan said second customer started shipping in December, working on additional products. Third customer gated by qualification testing (hundreds to thousands of hours). Expects fourth and fifth customers by year-end.

Alan confirmed ongoing pipeline of new products with largest customer, some ramping this quarter, some next. Encouraged by progress but still significant work ahead.

Brittany pointed analysts to per-officer pricing and $750M bookings to back into penetration, but didn't give a direct number.

Josh clarified that not every Axon Assistant customer is automatically an AI Era Plan customer, some buy stand-alone products. Directionally the right thinking but not 1:1. Brittany added that 500 agencies on Assistant is a very new feature adoption indicator, not a direct proxy for total AI Era Plan customers.

Josh reaffirmed high-30s% YoY bookings growth target for the year and implied Q4 will be very strong to hit that mark.

Rick explained 911 is the entry point for the Axon ecosystem, Prepared deploys AI voice automation with minimal integration, while Carbyne replaces legacy on-prem call center infrastructure with cloud. Together they extend the ecosystem from caller to first responder. Exited CAD previously because it lacked room to innovate; 911 is where AI can transform workflows.

Brittany confirmed 70% still on basic plans, significant upsell runway. No specific ARPU number given but $600 is the high end, not representative of average.

Josh traced the path: mid-$200s three years ago for OSP, now mid-$300s for OSP alone. Add AI Era Plan ($199/mo), in-car video, Dedrone, Fusus to reach ~$600. This is high end, not typical.

Jayshree backed an open CPO approach but said pluggable optics and copper stay dominant, with co-packaged optics only emerging in 2028-2029.

Jayshree confirmed at least five to seven scale-up rack opportunities in active engineering, targeting production in 2027 with 1.6T and liquid cooling designs.

Chantelle explained deferred has balances coming in and out quarterly with 12-18 month acceptance periods for larger AI deployments. Jayshree noted acceptance timing makes guidance impossible.

Jayshree acknowledged 2 neoclouds bundling with NVIDIA but many more worldwide seeking Arista for products, network design, and software capabilities they lack internally.

Jayshree attributed louder competitive chatter to Meta share volatility, emphasizing Arista's innovation, differentiation, and customer intimacy are stronger than ever.