Financial Analysis

Business Combination Hyperlume On September 29, 2025, the Company acquired 100% of the equity interest of Hyperlume, Inc. (Hyperlume), a developer of miniature light-emitting diode (microLED)-based optical interconnect technology for chip-to-chip communication, for a total purchase consideration of $92.0 million. Total purchase consideration is attributable to cash consideration of $88.7 million and cash settlement of vested share-based payment awards of $3.3 million by Hyperlume. This acquisition was primarily intended to expand the Companys comprehensive portfolio of end-to-end system-level connectivity solutions with Hyperlumes cutting-edge microLED technology to address the future of artificial intelligence-driven data infrastructure deployments. The factors contributing to the recognition of goodwill were based upon the Companys conclusion that there are strategic and synergistic benefits that are expected to be realized from the acquisition. Goodwill recorded for the Hyperlume acquisition is not expected to be deductible for tax purposes. The Company has one reportable segment and accordingly, there is no goodwill assignment based on reporting units. The following table summarizes the total purchase consideration (in thousands): Cash consideration $ 88,698 Cash settlement of Hyperlume share-based payment awards 3,319 Total purchase consideration 92,017 Less: Cash and cash equivalents acquired (9,453) Net cash payment for acquisition $ 82,564 IPR&D is initially capit …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Non-Cancelable Purchase Obligations Total future non-cancelable purchase obligations as of May 2, 2026 were as follows (in thousands): Fiscal Year Purchase Commitments to Manufacturing Vendors and Foundry Partners Technology License Fees Total 2027 $ 333,503 $ 12,555 $ 346,058 2028 4,243 6,803 11,046 2029 2,850 2,850 Total unconditional purchase commitments $ 337,746 $ 22,208 $ 359,954 Technology license fees include the liabilities under agreements for technology licenses between the Company and various vendors. Under the Companys manufacturing relationships with its foundry partners, cancellation of outstanding purchase orders is allowed but requires payment of all costs and expenses incurred through the date of cancellation. As of May 2, 2026, the total value of non-cancelable inventory purchase orders payable within the next one year that were committed with the Companys foundry partners and third-party subcontractors was approximately $149.2 million. Such purchase commitments are included in the preceding table. The Company has three manufacturing supply capacity reservation agreements with assembly subcontractors as of May 2, 2026. Under these arrangement, the Company has paid refundable deposits to the supplier in exchange for reserved manufacturing production capacity over the remaining term of the agreements, which range from two to five years. In addition, the Company committed to certain purchase levels that were in line with the capac …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes revenue disaggregated by primary geographical market based on destination of shipment for products, which may differ from the end customers principal offices (in thousands): Year Ended May 2, 2026 May 3, 2025 April 27, 2024 United States $ 768,051 $ 65,097 $ 49,569 Hong Kong 378,230 243,727 70,162 Mainland China 80,924 80,055 28,264 Taiwan 22,727 3,624 21,286 Rest of World 85,184 44,272 23,689 $ 1,335,116 $ 436,775 $ 192,970 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Share Incentive Plan 2015 Stock Plan The Company adopted the 2015 Stock Plan (the 2015 Plan) in February 2015. The 2015 Plan was an equity incentive program under which employees of the Company or its subsidiary corporations (including officers), non-employee members of the Companys board of directors, and consultants to the Company or its subsidiary corporations were offered an opportunity to acquire the Companys ordinary shares. The 2015 Plan provided both for the direct award or sale of ordinary shares (RSAs) and for the grant of options to purchase ordinary shares. Options granted under the 2015 Plan were Incentive Stock Options (ISOs) intended to qualify under Title 26 U.S. Code Section 422 or Non-qualified Stock Options (NSOs) which were not intended to so qualify. Only employees, outside directors and consultants of either the Company or a subsidiary of the Company, were eligible for the grant of NSO or the direct award or sale of ordinary shares. Only employees of either the Company or of a subsidiary of the Company, were eligible for the grant of ISOs. As of January 27, 2022, the 2015 Plan has ceased to be available for grants of new awards. Both RSAs and options granted generally vest over four years and vest at a rate of 25% upon the first anniversary of the issuance date and 1/48th per month thereafter. A summary of information related to share option activity, excluding options early exercised, is as follows: Outstanding Share Options (in millions) Weighted-Avera …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair value is an exit price representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company measures the fair value of money market funds using Level 1 inputs. The Companys certificates of deposit are classified as held to maturity securities as the Company intends to hold until their maturity dates. The certificates of deposit are valued using Level 2 inputs. Pricing sources may include industry standard data providers, security master files from large financial institutions, and other third -party sources used to determine a daily market value. The follo …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets, Net Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in business combinations. Goodwill is not subject to amortization but is tested for impairment annually during the fourth fiscal quarter, as well as whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company performed the required annual goodwill impairment test as of May 2, 2026 and concluded that goodwill was not impaired. As a result of the qualitative assessments, the Company determined that it was not necessary to perform a quantitative assessment at that time. Intangible Assets, Net As of May 2, 2026, the net carrying amounts are as follows (in thousands, except for weighted-average remaining amortization period): May 2, 2026 Gross Carrying Amounts Accumulated Amortization Foreign Currency Translation Net Carrying Amounts Weighted-Average Amortization Period (Years) Developed technology $ 12,000 $ (400) $ $ 11,600 5 IPR&D 17,200 462 17,662 N/A Total intangible assets $ 29,200 $ (400) $ 462 $ 29,262 Amortization for acquired intangible assets was $0.4 million during the year ended May 2, 2026 and charged to research and development expenses. The aggregate future amortization expense for acquired amortizable intangible assets as of May 2, 2026 are as follows (in thousands): Fiscal Year Amount 2027 $ 2,400 2028 2,400 2029 2,400 2030 2,40 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Income (loss) before provision (benefit) for income taxes consists of the following (in thousands): Year Ended May 2, 2026 May 3, 2025 April 27, 2024 United States $ 36,047 $ 13,795 $ 8,611 International 439,388 41,075 (31,356) $ 475,435 $ 54,870 $ (22,745) The components of income tax expense (benefit) are summarized as follows (in thousands): Year Ended May 2, 2026 May 3, 2025 April 27, 2024 Current Federal $ $ $ 2 State 32 12 3 International 6,224 2,253 1,484 Total current tax expense 6,256 2,265 1,489 Deferred Federal (2,562) 3,092 State (152) 359 International (386) 422 684 Total deferred tax expense (benefit) (3,100) 422 4,135 Total tax expense $ 3,156 $ 2,687 $ 5,624 The Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , on a prospective basis, in the fiscal year 2026. The Company consists of a Cayman Islands parent holding company with various international and U.S. subsidiaries. The applicable statutory rate in Cayman Islands is zero for the Company for the years ended May 2, 2026, May 3, 2025 and April 27, 2024. A reconciliation of the U.S. 21% rate to the effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended May 2, 2026, was as follows (in thousands): Year Ended May 2, 2026 Statutory federal tax expense $ 99,841 21 % State tax, net of federal benefit (2,980) (1) % Nontaxable or nondeductible items: Share-based compensation (73,448) (15) % Section 162(m) limitation 9,378 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company's leases include office space located in the United States and other international locations, which are all classified as operating leases. The Companys leases have remaining lease terms generally between 1 year and 7 years. Operating leases are included in right of use assets, other current liabilities, and non-current operating lease liabilities on the Companys consolidated balance sheets. The Company does not have any finance leases. Lease expense and supplemental cash flow information are as follows (in thousands): Year Ended May 2, 2026 May 3, 2025 Operating lease expenses $ 5,077 $ 4,186 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,716 $ 3,961 Right-of-use assets obtained in exchange for lease obligation $ 12,787 $ 5,178 The aggregate future lease payments for operating leases as of May 2, 2026 are as follows (in thousands): Fiscal Year Operating leases 2027 $ 6,092 2028 6,377 2029 5,843 2030 4,971 2031 3,014 Thereafter 3,364 Total lease payments 29,661 Less: Interest (4,212) Present value of lease liabilities $ 25,449 As of May 2, 2026, the weighted average remaining lease term for the Company's operating leases was 5.11 years and the weighted average discount rate used to determine the present value of the Company's operating leases was approximately 6.27%. In December 2025, the Company entered into multiple leasing agreements for additional office spaces to expand the corporate headquarter buildings in the Un …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Accounting Pronouncement Recently Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures , which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This standard is effective for fiscal years beginning after December 15, 2024, and may be applied on a retrospective or prospective basis. The Company adopted this guidance in the fiscal year 2026 on a prospective basis. The adoption did not have a material impact to the Companys consolidated financial statements. Refer to Note 13. Income Taxes for further details. Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures , which requires disclosure of, in interim and annual reporting periods, additional information about certain expenses in the financial statements. This standard is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027 and may be applied on a retrospective or prospective basis. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures. In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326) Measurement of Credit Losses for …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Recognition Remaining Performance Obligations Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The contracted but unsatisfied performance obligation was approximately $31.9 million which the Company expects to recognize over the next fiscal year. Customer Warrant During fiscal year 2022, the Company issued a warrant to Amazon.com NV Investment Holdings LLC (Holder) to purchase an aggregate of up to 4.1 million of our ordinary shares at an exercise price of $10.74 per share (the Customer Warrant). The exercise period of the Customer Warrant is through the seven th anniversary of the issue date. The shares issuable vest in tranches over the contract term based on the amount of global payments by Holder and its affiliates to the Company, up to $201.0 million in aggregate payments. A total of 4.1 million Customer Warrant shares were vested as of May 3, 2025. As of May 2, 2026, the Holder has exercised all Customer Warrant shares, resulting in a net issuance of 3.8 million shares after 0.3 million shares withheld for exercise price. During the fiscal years ended May 3, 2025 and April 27, 2024, the Company recognized $13.2 million and $3.9 million, respectively, as contra revenue within the product sales revenue on the consolidated stateme …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Geographic Information As discussed in Note 2. Significant Accounting Policies, the Company operates in one reportable segment. The CODM uses net income or loss for the purposes of making operating decisions, allocating resources and evaluating financial performance. The measure of segment assets is reported on the consolidated balance sheet as total assets, although the CODM does not evaluate asset information for purposes of allocating resources or evaluating performance. The table below provides information about the Companys revenue, significant segment expenses and other segment expenses (in thousands): Year Ended May 2, 2026 May 3, 2025 April 27, 2024 Revenue $ 1,335,116 $ 436,775 $ 192,970 Less: Cost of revenue 426,767 153,866 73,538 Personnel related expenses 129,178 95,269 69,630 Share-based compensation 182,638 76,160 37,890 Other segment items* 124,254 59,297 40,281 Net income (loss) $ 472,279 $ 52,183 $ (28,369) *Other segment items primarily include lease expenses, external professional services expenses, depreciation and amortization, interest income and tax provision (benefit). The following table summarizes revenue disaggregated by primary geographical market based on destination of shipment for products, which may differ from the end customers principal offices (in thousands): Year Ended May 2, 2026 May 3, 2025 April 27, 2024 United States $ 768,051 $ 65,097 $ 49,569 Hong Kong 378,230 243,727 70,162 Mainland China 80,924 80,055 28,264 Taiwan 22,72 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Significant Accounting Policies Use of Estimates The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Companys consolidated financial statements and accompanying notes. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and beliefs of what could occur in the future, given the available information. Estimates are used for, but not limited to, write-down for excess and obsolete inventories, variable consideration from revenue contracts, determination of the fair value of share-based awards, the realizability of tax assets and estimates of tax reserves, valuation of acquired intangible assets, impairment of long-lived assets and goodwill (as applicable) and incremental borrowing rate used in the Companys operating lease calculations. Actual results may differ from those estimates and such differences may be material to the financial statements. As new events continue to evolve and additional information becomes available, any changes to these estimates and assumptions will be recognized in the consolidated financial statements as soon as they become known. Foreign Currency All of the Companys subsidiaries use U.S. dollars as their functional currency, except for its entities located in Taiwan, Canada and mainland China. The functional currencies of these entities are their respective local currency. Forei …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Ordinary Shares The Company filed the Amended and Restated Memorandum of Association with Cayman Islands, which authorized 1 billion ordinary shares, par value $0.00005 per share and 50 million preferred shares. Each ordinary share is entitled to one vote per share. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when declared by the Companys board of directors, subject to the prior rights of holders of all other classes of shares outstanding. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Business Combination In May 2026, the Company acquired 100% of the equity interest in DustPhotonics Ltd., a leading developer of silicon photonics photonic integrated circuit technology for optical connectivity, for a total purchase consideration of $770 million cash and approximately 0.8 million shares of the Companys ordinary shares. In addition, the Company may pay incremental contingent consideration of up to approximately 2.8 million shares and $31.6 million cash based on the achievement of certain financial milestones, subject to the terms of the definitive agreement. Share Incentive Plan On May 28, 2026, the Board of Directors of the Company approved a special performance-based equity award for the Companys Chief Executive Officer in the form of performance-based restricted stock units (Special PSUs) under the 2021 Plan. The Special PSUs are 100% performance-based and tied to six progressively challenging performance hurdles based on both revenue and stock price growth. Specifically, the Special PSUs are eligible to vest in six substantially equal tranches (set forth in the table below) subject to the achievement of (i) a revenue goal (Revenue Goal) and (ii) a stock price goal (Stock Price Goal) over a five-year performance period beginning on the grant date and ending on June 30, 2031. The Revenue Goal and Stock Price Goal hurdles for each tranche of the Special PSUs are as follows: Tranche Revenue Goal Hurdle Stock Price Goal Hurdle Earned PSUs (sha …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Business Combination DustPhotonics On May 28, 2026, the Company acquired 100% of the equity interest of DustPhotonics Ltd. (DustPhotonics), a developer of Silicon Photonics Photonic Integrated Circuit technology for optical transceivers, for a total purchase consideration of $1.3 billion. This acquisition was primarily intended to position the Company with a vertically integrated connectivity stack spanning SerDes, DSP, Silicon Photonics and system integration for scale out and scale up networks addressing both electrical and optical interconnects across the full AI infrastructure build-out. The factors contributing to the recognition of goodwill were based upon the Companys conclusion that there are strategic and synergistic benefits that are expected to be realized from the acquisition. Goodwill recorded for the DustPhotonics acquisition is not expected to be deductible for tax purposes. The Company has one reportable segment and accordingly, there is no goodwill assignment based on reporting units. The following table summarizes the total purchase consideration (in thousands): Cash consideration $ 769,587 Ordinary shares issued 169,069 Ordinary shares consideration for replacement equity awards attributable to pre-combination services 2,455 Contingent consideration 310,000 Total purchase consideration $ 1,251,111 In accordance with U.S. GAAP requirements for business combinations, the Company allocated the fair value of the purchase consideration to the tangible assets, li …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Non-cancelable Purchase Obligations Total future non-cancelable purchase obligations as of August 1, 2026 are as follows (in thousands): Fiscal Year Purchase Commitments to Manufacturing Vendors and Foundry Partners Technology License Fees Total Remainder of 2027 $ 212,717 $ 3,513 $ 216,230 2028 5,982 5,982 Total unconditional purchase commitments $ 212,717 $ 9,495 $ 222,212 Technology license fees include the liabilities under agreements for technology licenses between the Company and various vendors. Under the Companys manufacturing relationships with its foundry partners, cancellation of outstanding purchase orders is allowed but requires payment of all costs and expenses incurred through the date of cancellation. The Company has multiple manufacturing supply capacity reservation agreements with certain assembly subcontractors as of August 1, 2026. The agreements require the Company to make upfront deposits to the subcontractors in exchange for reserved manufacturing capacity over the agreement term, which ranges from 2 to 6 years. The deposits are refundable through future purchases upon meeting certain volume requirements. As of August 1, 2026, the Company had refundable deposits of $88.4 million of which $62.9 million was recorded in other current assets and $25.5 million in other non-current assets on the condensed consolidated balance sheet. Subsequent to August 1, 2026, the Company entered into an additional manufacturing supply capacity …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes revenue disaggregated by primary geographical market based on destination of shipment for revenue, which may differ from the customers principal offices (in thousands): Three Months Ended August 1, 2026 August 2, 2025 United States $ 255,442 $ 82,828 Hong Kong 91,175 74,885 Malaysia 74,455 6,383 Mainland China 1,095 51,781 Rest of World 56,836 7,197 $ 479,003 $ 223,074 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Share Incentive Plan Restricted Stock Unit (RSU) Awards A summary of information related to RSU activity during the three months ended August 1, 2026 is as follows: RSUs Outstanding Number of Shares (in millions) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Balance as of May 3, 2026 7.2 $58.43 1.18 $ 1,319.6 Granted 2.1 $226.57 Vested (0.9) $41.21 Canceled/ forfeited (0.1) $100.54 Balance and expected to vest as of August 1, 2026 8.3 $104.26 2.50 $ 1,703.6 Performance-based Restricted Stock Unit (PSU) Awards A summary of information related to PSU activity during the three months ended August 1, 2026 is as follows: PSUs Outstanding Number of Shares (in millions) Weighted-Average Grant Date Fair Value Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Balance as of May 3, 2026 1.5 $85.33 2.15 $ 272.1 Granted 1.9 $155.39 Vested (0.3) $59.82 Balance and expected to vest as of August 1, 2026 3.1 $131.31 1.67 $ 632.0 Share Option Awards A summary of information related to share option activity during the three months ended August 1, 2026 is as follows: Options Outstanding Outstanding Share Options (in millions) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Balance as of May 3, 2026 2.1 $2.24 3.96 $ 383.4 Options vested and exercised (0.4) $1.80 Balance expected to vest and exercisable as of August 1, 20 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair value is an exit price representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company measures the fair value of money market funds using Level 1 inputs. The Companys certificates of deposit are classified as held-to-maturity securities as the Company intends to hold until their maturity dates. The certificates of deposit are valued using Level 2 inputs. Pricing sources may include industry standard data providers, security master files from large financial institutions and other third -party sources used to determine a daily market value. The follow …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets, Net Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in business combinations. The carrying value of goodwill as of August 1, 2026 and May 2, 2026 was $986.4 million and $92.8 million, respectively. Intangible Assets, Net As of August 1, 2026 and May 2, 2026, the net carrying amounts are as follows (in thousands, except for weighted-average remaining amortization period): August 1, 2026 Gross Carrying Amounts Accumulated Amortization Foreign Currency Translation Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technology $ 276,000 $ (9,800) $ $ 266,200 5 IPR&D 98,200 (83) 98,117 N/A Customer relationships 15,000 (500) 14,500 5 Total intangible assets $ 389,200 $ (10,300) $ (83) $ 378,817 May 2, 2026 Gross Carrying Amounts Accumulated Amortization Foreign Currency Translation Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technology $ 12,000 $ (400) $ $ 11,600 5 IPR&D 17,200 462 17,662 N/A Total intangible assets $ 29,200 $ (400) $ 462 $ 29,262 The weighted-average amortization period for developed technology and customer relationships is 5 years. Amortization for intangible assets was $11.6 million during the three months ended August 1, 2026. The aggregate future amortization expense for the amortizable intangible assets as of August 1, 2026 is as follows (in thousa …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The Companys tax provision for interim periods is determined using an estimate of its annual effective tax rate, excluding zero rate jurisdictions and adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Companys quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in accurately predicting its pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, changes in tax laws, the applicability of special tax regimes, changes in how we do business and discrete items. Provision for income taxes for the three months ended August 1, 2026 and August 2, 2025 was as follows (in thousands except percentages): Three Months Ended August 1, 2026 August 2, 2025 % Change Provision (benefit) for income taxes $ (585) $ 1,289 (45.4) % Effective tax rate (0.5) % 2.0 % The Companys effective tax rate for the three months ended August 1, 2026 differed from that of the corresponding period in the prior year primarily due to the tax impact of acquired intangible assets and related purchase accounting adjustments arising from the DustPhotonics acquisition. During the three months ended August 1, 2026, there were no material changes to the total amount …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Pronouncement Recently Adopted In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets, providing all entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This ASU is effective for annual reporting periods beginning after December 15, 2025 and interim periods within the fiscal year beginning after December 15, 2025. The Company adopted this guidance in the first quarter of fiscal year 2027 and the adoption did not have a material impact to the Companys consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive Income Expense Disaggregation Disclosures, which requires disclosure of, in interim and annual reporting periods, additional information about certain expenses in the financial statements. This standard is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027 and may be applied on a retrospective or prospective basis. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Recognition The following table summarizes revenue disaggregated by primary geographical market based on destination of shipment for revenue, which may differ from the customers principal offices (in thousands): Three Months Ended August 1, 2026 August 2, 2025 United States $ 255,442 $ 82,828 Hong Kong 91,175 74,885 Malaysia 74,455 6,383 Mainland China 1,095 51,781 Rest of World 56,836 7,197 $ 479,003 $ 223,074 Remaining Performance Obligations Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The contracted but unsatisfied performance obligations as of August 1, 2026 were approximately $4.2 million, which the Company expects to recognize over the next 12 months. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The Companys Chief Operating Decision Maker (CODM) manages the Companys business activities as a single reportable segment at the consolidated level. Accordingly, the CODM uses net income or loss for the purposes for making operating decisions, allocating resources and evaluating financial performance. The measure of segment assets is reported on the condensed consolidated balance sheet as total assets, although the CODM does not evaluate asset information of purposes of allocating resources or evaluating performance. The table below provides information about the Companys revenue, significant segment expenses and other segment expenses (in thousands): Three Months Ended August 1, 2026 August 2, 2025 Revenue $ 479,003 $ 223,074 Less: Cost of revenue 169,923 72,706 Personnel related expenses 43,180 27,253 Share-based compensation 87,979 35,455 Other segment items* 48,496 24,261 Net income $ 129,425 $ 63,399 *Other segment items primarily include lease expense, external professional service expenses, depreciation and amortization, interest income and tax provision. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Significant Accounting Policies The Company believes that other than the accounting policies as described below, there have been no significant changes to the items disclosed in Note 2, Significant Accounting Policies, included in the Companys Annual Report on Form 10-K for the fiscal year ended May 2, 2026. Contingent Consideration Certain of the Companys acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future financial metrics. The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, the Company estimates the fair value of contingent earn-out payments as part of the initial purchase price and records the estimated fair value of contingent consideration as a liability or an equity on the consolidated balance sheets. The Company reviews and re-assesses the estimated fair value of contingent consideration liabilities on a quarterly basis, and the updated fair value could be materially different from the initial estimates or prior amounts. Changes in the estimated fair value of its contingent earn-out liabilities and adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in other income, net on the Companys consolidated statements of operations. Use of Estimates The preparation of these condensed consolidated financial statements in conformity with …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing