What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-07-23 compared with 2024-04-23 · 117 added, 59 removed, 123 unchanged (59% of the section changed)

27 unchanged sentences

Cost of revenue is strongly correlated to revenue and tends to fluctuate due to all of the above factors that may cause revenue fluctuations.

Factors that have impacted our cost of revenue for the three months ended March 30, 2024, or that we expect may

Factors that have impacted our cost of revenue for the six months ended June 29, 2024, or that we expect may

impact cost of revenue in future periods, also include:

19 unchanged sentences

Our management evaluates its estimates, assumptions and judgments on an ongoing basis.

Our critical accounting policies and estimates, which are revenue recognition and inventory valuation and supplier purchase commitments, are described under “Critical Accounting Policies and Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2023.

For the three months ended March 30, 2024, there have been no significant changes in our critical accounting policies and estimates.

We believe the following critical accounting policies affect our significant judgments and estimates used in the preparation of our financial statements.

Revenue Recognition

Revenue is recognized when a performance obligation is satisfied, which occurs when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

Revenue from sales of access and premises systems is recognized when control is transferred to the customer, which is generally when the products are shipped.

Revenue from software platform licenses, which provides the customer with a right to use the software as it exists, is generally recognized upfront when the license is made available to the customer.

Revenue from cloud-based software subscriptions, customer support, maintenance, extended warranty subscriptions and managed services is generally recognized ratably over the contract term.

Revenue from professional services and training is recognized as the services are delivered.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account.

A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

Our hardware products contain both software and non-software components that function together to deliver the products’ essential functionality and therefore constitutes a single performance obligation as the promise to transfer the individual software and non-software components is not separately identifiable and, therefore, not distinct.

Cloud-based software subscriptions can include multi-year agreements with a fixed annual fee for a minimum committed usage level.

To the extent that minimum committed usage level each year varies, we have concluded that each year represents a distinct stand-ready performance obligation and the transaction price allocated to each performance obligation is recognized as revenue ratably over each annual period.

Our contracts generally include multiple performance obligations.

For such arrangements, we allocate the contract’s transaction price to each performance obligation using the relative stand-alone selling price of each distinct good or service in the contract.

Observable prices of a product or service when we sell them separately based on stratification by classes of customers and

products are the best estimate of stand-alone selling prices.

However, when stand-alone selling prices are not directly observable, they are estimated, and judgment is required in their determination.

In these instances, we determine stand-alone selling prices using all other available information, which may include pricing practices relative to geographies, market conditions, competitive landscape, characteristics of targeted customers for hardware products, internal costs and gross margin objectives for services and internal costs and value assessments for subscriptions.

Inventory Valuation and Supplier Purchase Commitments

Inventory, which primarily consists of finished goods purchased from CMs or ODMs, is stated at the lower of cost (determined by the first-in, first-out method) and net realizable value.

Inbound shipping costs and tariffs are included in the cost of inventory.

In addition, from time to time, we procure component inventory primarily as a result of manufacturing discontinuation of critical components by suppliers.

Furthermore, as a result of the global pandemic-induced supply chain challenges, we have purchased, and may continue to purchase, excess components from our suppliers and consign components back to our suppliers to be consumed on future finished good builds.

We regularly monitor inventory on-hand and record write-downs for excess and obsolete inventory.

These write-downs are based on our assumptions of demand for our products and requires significant judgement of relevant factors including a comparison of the quantity and cost of inventory on hand to our estimated forecast of customer demand, current levels of orders and backlog, market conditions, potential obsolescence of technology, product life cycles and whether pricing trends or forecasts indicate that the carrying value of inventory exceeds our estimated selling price.

Factors that could influence management’s assumptions and judgements include changes in economic conditions, competitive dynamics, winning or losing a key customer, changes in our customers’ capital expenditures, government investment programs, technology changes, new product introductions and supply-chain lead times.

We also evaluate our supplier purchase commitments, which remain elevated due to extended lead-times created by pandemic-induced supply-chain challenges, and record a liability for excess and obsolete components consistent with the valuation of our excess and obsolete inventory and future production requirements.

For example, during the fourth quarter of 2023, we wrote down excess and obsolete inventory and accrued a liability for components at suppliers primarily related to a pivot in customer demand to our newer all-platform model from our older legacy product family.

Actual demand may differ from forecasted demand and may have a material effect on gross profit.

If inventory is written down, a new cost basis is established that cannot be increased in future periods.

The sale of previously reserved inventory has not had a material impact on our gross margin.

Recent Accounting Pronouncements

There have been no additional accounting pronouncements or changes in accounting pronouncements during the three months ended March 30, 2024 as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2023 that are significant or expected to be significant to us.

There have been no additional accounting pronouncements or changes in accounting pronouncements during the six months ended June 29, 2024 as compared with the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2023 that are significant or expected to be significant to us.

Results of Operations

Comparison of the Three Months Ended March 30, 2024 and April 1, 2023

The following table sets forth our revenue (dollars in thousands):

Three Months Ended

2024 April 1,

Comparison of the Three and Six Months Ended June 29, 2024 and July 1, 2023

The following table sets forth our revenue by customer size (dollars in thousands):

Three Months Ended Six Months Ended

2023 Variance

Dollars Variance

Revenue $ 226,310 $ 250,008 $ (23,698) (9) %

Our revenue decreased by $23.7 million for the three months ended March 30, 2024 as compared to the corresponding period in 2023.

The decrease in revenue was primarily due to what we believe were delayed purchasing decisions of our appliances as our customers evaluate and prepare for various government stimulus programs, the shortening of our lead times to customers and a small set of significant customers that slowed purchases while we believe they reevaluate their investment priorities.

Meanwhile, software, cloud and managed services have continued to grow as our customers add new subscribers over time.

For the three months ended March 30, 2024, United States revenue was $210.1 million, or 93% of our revenue, compared to $227.9 million, or 91% of our revenue for the same period in 2023.

International revenue was $16.2 million, or 7% of our revenue, for the three months ended March 30, 2024, as compared to $22.1 million, or 9% of our revenue, for the same period in 2023.

No customer accounted for more than 10% of the Company’s revenue for the three months ended March 30, 2024 and April 1, 2023.

Percent June 29,

2023 Variance

Dollars Variance

Large $ 11,995 $ 26,778 $ (14,783) (55) % $ 28,100 $ 54,983 $ (26,883) (49) %

Medium 24,366 37,367 (13,001) (35) % 52,252 77,680 (25,428) (33) %

Small 161,778 196,871 (35,093) (18) % 344,097 378,361 (34,264) (9) %

$ 198,139 $ 261,016 $ (62,877) (24) % $ 424,449 $ 511,024 $ (86,575) (17) %

Our revenue decreased by $62.9 million and $86.6 million for the three and six months ended June 29, 2024, respectively, as compared to the corresponding periods in 2023.

The decrease in revenue was primarily due to what we believe were delayed purchasing decisions of our appliances as our customers evaluate and prepare for various government stimulus programs, customers adjusting their purchases due to our shortened lead times and a small set of significant customers that slowed purchases while we believe they reevaluate their investment priorities.

In the second quarter of 2024, we also had one small customer grow its subscriber base such that it is now a medium-sized customer.

For the three and six months ended June 29, 2024, United States revenue was $182.7 million and $392.8 million, or 92% and 93% of our revenue, compared to $232.4 million and $460.4 million, or 89% and 90% of our revenue for the same periods in 2023.

International revenue was $15.4 million and $31.7 million, or 8% and 7% of our revenue, for the three and six months ended June 29, 2024, as compared to $28.6 million and $50.7 million, or 11% and 10% of our revenue, for the same periods in 2023.

The decrease in international revenue for the three and six months ended June 29, 2024, as compared to the same periods in 2023, was mainly due to lower shipments to Europe and to a lesser extent the Americas outside the United States.

No customer accounted for more than 10% of the Company’s revenue for the three and six months ended June 29, 2024 and July 1, 2023.

Gross Profit and Gross Margin

The following table sets forth our gross profit and gross margin (dollars in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 Variance

Dollars Variance

Percent June 29,

2023 Variance

Dollars Variance

Gross profit $ 107,603 $ 136,470 $ (28,867) (21) % $ 230,180 $ 264,521 $ (34,341) (13) %

Gross margin 54.3 % 52.3 % 54.2 % 51.8 %

Gross profit decreased to $122.6 million for the three months ended March 30, 2024, from $128.1 million during the corresponding period in 2023.

The increase in gross margin of 300 basis points for the three months ended March 30, 2024, respectively, compared to the corresponding period in 2023, was mainly due to the continued growth in our platform, cloud and managed services as well as being a greater percentage of our total revenue, customer mix and the sell through of a lower amount of excessively priced components acquired in the secondary market during the supply-chain disruption partially offset by excess and obsolete inventory charges.

Gross profit decreased to $107.6 million and $230.2 million for the three and six months ended June 29, 2024, from $136.5 million and $264.5 million during the corresponding periods in 2023.

These decreases were mainly due to the corresponding decreases in revenue.

The increase in gross margin of 200 and 240 basis points for the three and six months ended June 29, 2024, respectively, compared to the corresponding periods in 2023, was mainly due to the continued growth in our platform, cloud and managed services as well as being a greater percentage of our total revenue.

Operating Expenses

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The following table sets forth our sales and marketing expenses (dollars in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 Variance

Dollars Variance

Percent June 29,

2023 Variance

Dollars Variance

Sales and marketing expenses $ 52,238 $ 54,596 $ (2,358) (4) % $ 106,135 $ 106,461 $ (326) — %

Percent of revenue 26 % 21 % 25 % 21 %

Sales and marketing expenses for the three months ended March 30, 2024 increased by $2.0 million compared with the corresponding period in 2023 primarily due to increases in personnel expenses of $1.1 million, stock-based compensation of $0.4 million, $0.3 million in allocated common costs and marketing expenses of $0.3 million.

Sales and marketing expenses as a percentage of revenue increased to 24% from 21% due to lower revenue in the first quarter of 2024.

Sales and marketing expenses for the three months ended June 29, 2024 decreased by $2.4 million compared with the corresponding period in 2023 primarily due to decreases in personnel expenses of $2.0 million and stock-based compensation of $0.9 million.

These decreases were partially offset by an increase in marketing expenses of $0.9 million.

Sales and marketing expenses for the six months ended June 29, 2024 decreased by $0.3 million compared with the corresponding period in 2023 primarily due to decreases in personnel expenses of $0.9 million, stock-based compensation of $0.4 million and outside services of $0.4 million.

These decreases were partially offset by increases of marketing expenses of $1.2 million and $0.4 million in allocated common costs.

For the three and six months ended June 29, 2024, sales and marketing expenses as a percentage of revenue increased to 26% from 21% and 25% from 21%, respectively, due to lower revenue compared to the same periods in 2023.

We expect our investments in sales and marketing will be relatively flat in absolute dollars in the short-term as we look to land new customers and expand our platform, cloud and managed services.

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The following table sets forth our research and development expenses (dollars in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 Variance

Dollars Variance

Percent June 29,

2023 Variance

Dollars Variance

Research and development expenses $ 44,123 $ 45,341 $ (1,218) (3) % $ 88,545 $ 88,514 $ 31 — %

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Percentage of gross profit 41 % 33 % 38 % 33 %

Research and development expenses for the three months ended March 30, 2024 increased by $1.2 million as compared with the corresponding period in 2023 mainly due to increases in personnel expenses of $1.6 million, $0.7 million of depreciation and amortization, $0.7 million in allocated common costs and stock-based compensation of $0.2 million.

These increases were partially offset by decreases in prototypes and test equipment expenses of $1.4 million and outside services of $0.5 million.

Research and development expenses as a percentage of gross profit increased to 36% from 34% due to lower revenue in the first quarter of 2024.

We expect our investments in research and development to remain relatively flat in absolute dollars in the short term as we seek to expand the functionality and capabilities of our platforms.

Research and development expenses for the three months ended June 29, 2024 decreased by $1.2 million as compared with the corresponding period in 2023 mainly due to decreases in prototypes and test equipment expenses of $1.0 million, outside services of $0.9 million and stock-based compensation of $0.5 million.

These decreases were partially offset by increases in allocated common costs of $0.5 million and depreciation and amortization of $0.5 million.

Research and development expenses for the six months ended June 29, 2024 remained relatively unchanged compared with the corresponding period in 2023.

Increases in personnel expenses of $1.7 million, allocated common costs of $1.2 million and depreciation and amortization of $1.2 million were offset by decreases in prototypes and test equipment expenses of $2.4 million and outside services of $1.4 million.

For the three and six months ended June 29, 2024, research and development expenses as a percentage of revenue increased to 41% from 33% and 38% from 33%, respectively, due to lower revenue compared to the same periods in 2023.

We expect our investments in research and development to remain relatively flat in absolute dollars in the short term as we seek to expand the functionality and capabilities of our platform, cloud and managed services.

General and Administrative Expenses

The following table sets forth our general and administrative expenses (dollars in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 Variance

Dollars Variance

Percent June 29,

2023 Variance

Dollars Variance

General and administrative expenses $ 22,598 $ 24,722 $ (2,124) (9) % $ 48,888 $ 47,799 $ 1,089 2 %

Percent of revenue 11 % 9 % 12 % 9 %

General and administrative expenses for the three months ended March 30, 2024 increased by $3.2 million as compared with the corresponding period in 2023 mainly due to increases in personnel expenses of $1.8 million, professional services expenses of $0.8 million and stock-based compensation of $0.2 million.

General and administrative expenses as a percentage of revenue increased to 12% from 9% due to lower revenue in the three months ended March 30, 2024.

General and administrative expenses for the three months ended June 29, 2024 decreased by $2.1 million as compared with the corresponding period in 2023 mainly due to decreases in professional services expenses of $1.6 million, stock-based compensation of $1.0 million and allocated common costs of $0.7 million.

These decreases were partially offset by increases in depreciation and amortization of $0.6 million and personnel expenses of $0.3 million.

General and administrative expenses for the six months ended June 29, 2024 increased by $1.1 million as compared with the corresponding period in 2023 mainly due to increases in personnel expenses of $2.1 million, depreciation and amortization of $1.3 million and equipment expense of $0.5 million.

These increases were partially offset by decreases in allocated common costs of $1.9 million, professional services expenses of $0.8 million and stock-based compensation of $0.8 million.

For the three and six months ended June 29, 2024, general and administrative expenses as a percentage of revenue increased to 11% from 9% and 12% from 9%, respectively, due to lower revenue compared to the same periods in 2023.

We expect our general and administrative investments to be fairly constant in absolute dollars in the near term and potentially decline as a percentage of revenue over time in relation to anticipated longer-term increased revenue.

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The following table sets forth our interest and other expense, net (dollars in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 Variance

Dollars Variance

Percent June 29,

2023 Variance

Dollars Variance

Interest and other expense, net $ 2,674 $ 2,418 $ 256 11 % $ 5,174 $ 3,891 $ 1,283 33 %

Percent of revenue 1 % 1 % 1 % 1 %

Interest and other expense, net increased by $1.0 million as compared with the corresponding period in 2023 mainly due to a higher rate of interest earned on our cash, cash equivalents and marketable securities.

Interest and other expense, net increased by $0.3 million and $1.3 million as compared with the corresponding periods in 2023 mainly due to a higher rate of interest earned on our cash, cash equivalents and marketable securities.

The following table sets forth our income taxes (dollars in thousands):

Three Months Ended

2024 April 1,

Three Months Ended Six Months Ended

2023 Variance

Dollars Variance

Income taxes $ 365 $ 1,811 $ (1,446) (80) %

Percent June 29,

2023 Variance

Dollars Variance

Income taxes (benefit) $ (724) $ 4,856 $ (5,580) (115) % $ (359) $ 6,667 $ (7,026) (105) %

Effective tax rate 8.3 % 34.1 % 4.4 % 26.0 %

For the three months ended March 30, 2024, our income tax expense was $0.4 million for an effective tax rate of 78.0% which differed from the statutory rate of 21% primarily due to state taxes and the effect of non-deductible stock-based compensation for executive officers offset by the favorable impact of U.S.

For the three and six months ended June 29, 2024, our income tax benefit was $0.7 million and $0.4 million for an effective tax rate of 8.3% and 4.4%, respectively, which differed from the statutory rate of 21% primarily due to state taxes and the effect of non-deductible stock-based compensation for executive officers offset by the favorable impact of U.S.

federal research tax credits, excess tax benefits from stock-based compensation and the U.S.

tax impact of foreign operations.

The effective tax rates for the three months ended March 30, 2024 are higher than the similar period in 2023 primarily as a result of lower pre-tax earnings with a relatively consistent level of non-deductible expenses.

The effective tax rates for the three and six months ended June 29, 2024 are lower than the similar periods in 2023 primarily as a result of negative pre-tax earnings with a relatively consistent level of non-deductible expenses offset by lower excess tax benefits from stock-based compensation.

Our income taxes may be subject to fluctuation during the year and in future years as new information is obtained.

This may affect the assumptions used to estimate the interim income tax provision, including factors such as actual results differing from our estimates of pre-tax earnings in the various jurisdictions in which we operate, which could impact the recognition of our deferred tax assets, further benefits from stock option exercises, investments in our foreign operations, the recognition or de-

recognition of tax benefits related to uncertain tax positions and changes in or the interpretation of tax laws in jurisdictions where we conduct business.

Liquidity and Capital Resources

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However, for the past few years, we have funded our operations and investing activities from cash flow generated from our operations as our business has grown and became profitable.

As of March 30, 2024, we had cash, cash equivalents and marketable securities of $239.5 million, which consisted of deposits held at banks and major financial institutions and highly liquid marketable securities such as U.S.

As of June 29, 2024, we had cash, cash equivalents and marketable securities of $261.2 million, which consisted of deposits held at banks and major financial institutions and highly liquid marketable securities such as U.S.

government agency securities and commercial paper.

Operating Activities

Net cash provided by operating activities was $14.7 million for the three months ended March 30, 2024 and consisted of net income of $0.1 million and non-cash charges of $17.9 million offset by cash flow decreases of $3.3 million reflected in the net change in assets and liabilities.

Net cash provided by operating activities was $37.0 million for the six months ended June 29, 2024 and consisted of a net loss of $7.9 million offset by non-cash charges of $34.3 million and cash flow increases of $10.6 million reflected in the net change in assets and liabilities.

Non-cash charges primarily consisted of stock-based compensation of $32.3 million and depreciation and amortization of $10.0 million partially offset by deferred income taxes of $5.3 million and the net accretion of available-for-sale securities of $2.7 million.

Cash flow decreases resulting from the net change in assets and liabilities primarily consisted of a decrease in accrued liabilities of $28.9 million due to the payout of incentive compensation and a decrease in the reserves for inventory held at suppliers, and a decrease in accounts payable of $16.0 million due to the timing of inventory payments.

These changes were partially offset by a decrease in accounts receivable of $25.7 million, due to the timing of customer payments and lower sales in the first quarter of 2024 than the prior quarter, a decrease in inventory of $13.2 million as the supply chain continued to normalize, and an increase in deferred revenue of $2.3 million primarily due to support contract renewals as well as an increase in customer payments received or due in advance of satisfying the related contract’s performance obligation.

Net cash provided by operating activities was $8.1 million for the three months ended April 1, 2023 and consisted of net income of $9.6 million and non-cash charges of $18.6 million offset by cash flow decreases of $20.0 million reflected in the net change in assets and liabilities.

Cash flow increases resulting from the net change in assets and liabilities primarily consisted of a decrease in accounts receivable of $44.0 million and inventory of $19.5 million, both in line with our revenue decline.

These changes were partially offset by a decrease in accrued liabilities of $28.6 million relating to various factors including a decrease in our liability for components, a decrease in incentive compensation related accruals and the settlement of a legal matter;

a decrease in accounts payable of $23.4 million due to decreased inventory purchases;

and a decrease in deferred revenue of $7.3 million primarily due to the recognition of previously deferred revenue and a trend to move customers to monthly from annual billing arrangements.

Net cash provided by operating activities was $25.6 million for the six months ended July 1, 2023 and consisted of net income of $19.0 million and non-cash charges of $41.0 million offset by cash flow decreases of $34.4 million reflected in the net change in assets and liabilities.

Non-cash charges primarily consisted of stock-based compensation of $34.1 million and depreciation and amortization of $7.9 million.

Cash flow decreases resulting from the net change in assets and liabilities primarily consisted of a decrease in accrued liabilities of $12.3 million due to the payout of incentive compensation and payments related to our Calix ConneXions 2022 Customer Success and Innovation conference;

an increase in inventory of $7.4 million to improve our responsiveness to our BSPs’ subscriber demand;

Cash flow decreases resulting from the net change in assets and liabilities primarily consisted of an increase in prepaid expenses and other assets of $26.1 million mainly due to advanced payments to supply chain partners, the renewal of a software contract and reclassification of contract assets from deferred revenue;

a decrease in accounts payable of $6.3 million due to the timing of inventory purchases;

and an increase in prepaid expenses and other assets of $7.1 million mainly due to the renewal of a software contract and reclassification of contract assets from deferred revenue.

These changes were partially offset by a decrease in accounts receivable of $1.6 million due to continued strong shipment linearity and an increase in deferred revenue of $11.0 million primarily due to our platform subscriptions and support contracts and reclassification of contract assets to prepaid expenses and other assets.

an increase in inventory of $4.2 million to improve our responsiveness to our BSPs’ subscriber demand;

an increase in accounts receivable of $3.2 million in line with our revenue growth;

and a decrease in accrued liabilities of $3.1 million due to the payout of incentive compensation and payments related to our Calix ConneXions 2022 Customer Success and Innovation conference.

These changes were partially offset by an increase in deferred revenue of $8.6 million primarily due to our platform subscriptions and support contracts and reclassification of contract assets to prepaid expenses and other assets.

Investing Activity

For the three months ended March 30, 2024, cash provided by investing activities of $3.3 million consisted of net maturities of marketable securities of $7.0 million partially offset by capital expenditures of $3.7 million, consisting primarily of purchases of test and computer equipment.

For the three months ended April 1, 2023, cash used in investing activities of $3.3 million consisted of net purchases of marketable securities of $1.3 million and capital expenditures of $4.6 million, consisting primarily of purchases of test and computer equipment.

For the six months ended June 29, 2024, cash provided by investing activities of $27.0 million consisted of net maturities and sales of marketable securities of $17.4 million and capital expenditures of $9.7 million, consisting primarily of purchases of test and computer equipment.

For the six months ended July 1, 2023, cash used in investing activities of $18.8 million consisted of net purchases of marketable securities of $8.7 million and capital expenditures of $10.1 million, consisting primarily of purchases of test and computer equipment and software.

Financing Activities

Net cash provided by financing activities of $7.1 million for the three months ended March 30, 2024 primarily consisted of proceeds from the issuance of common stock related to our equity plans of $10.8 million partially offset by repurchases of our common stock of $3.7 million.

Net cash provided by financing activities of $10.2 million for the three months ended April 1, 2023 primarily consisted of proceeds from the issuance of common stock related to our equity plans of $12.5 million.

Net cash provided by financing activities of $11.1 million for the six months ended June 29, 2024 primarily consisted of proceeds from the issuance of common stock related to our equity plans of $14.8 million partially offset by repurchases of our common stock of $3.7 million.

Net cash provided by financing activities of $4.2 million for the six months ended July 1, 2023 primarily consisted of proceeds from the issuance of common stock related to our equity plans of $18.3 million.

This was partially offset by repurchases of common stock of $10.0 million and payments related to a financing arrangement of $4.1 million.

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We believe that our outsourced approach to manufacturing provides us significant flexibility in both managing inventory levels and financing our inventory.

Furthermore, we have a common stock repurchase program, which had $109.9 million available as of March 30, 2024.

Furthermore, we have a common stock repurchase program, which had $109.9 million available as of June 29, 2024.

Our stock repurchase program does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time.

2 unchanged sentences

Contractual Obligations and Commitments

Our principal commitments as of March 30, 2024 consisted of our contractual obligations under non-cancelable outstanding purchase obligations and operating lease obligations for office space.

The following table summarizes our contractual obligations as of March 30, 2024 (in thousands):

Our principal commitments as of June 29, 2024 consisted of contractual obligations under non-cancelable outstanding purchase obligations and operating lease obligations for office space.

The following table summarizes our contractual obligations as of June 29, 2024 (in thousands):

Payments Due by Period

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis