What changed in this filing

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Item 1. Business

2025-08-19 compared with 2024-08-20 · 42 added, 47 removed, 315 unchanged (22% of the section changed)

1 unchanged sentence

We offer a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing.

We focus primarily on low-volume production of a wide variety of high complexity products, which we refer to as “low-volume, high-mix.” We also have the capability to accommodate high-volume production.

We are capable of producing a wide variety of high complexity products in any mix and any volume.

Based on our extensive experience and the positive feedback we have received from our customers, we believe we are a global leader in providing these services to the optical communications, automotive, and industrial lasers markets.

Our customer base includes companies in complex industries that require advanced precision manufacturing capabilities such as optical communications, automotive, industrial lasers, medical, and sensors.

The products that we manufacture for our OEM customers include selective switching products;

tunable lasers, transponders and transceivers;

active optical cables;

solid state, diode-pumped, gas and fiber lasers;

Our customers in these industries support a growing number of end-markets, including automotive, biotechnology, communications, materials processing, medical devices, metrology and semiconductor processing.

Our revenues for the year ended June 28, 2024 (“fiscal year 2024”) increased by $237.8 million, or 9.0%, from $2.65 billion for the year ended June 30, 2023 (“fiscal year 2023”) to $2.88 billion for fiscal year 2024.

Our percentage of revenues from optical communications products increased from 75.9% in fiscal year 2023 to 79.4% in fiscal year 2024, while our percentage of revenues from automotive, industrial lasers, and other markets decreased from 24.1% in fiscal year 2023 to 20.6% in fiscal year 2024.

In many cases, we are the sole outsourced manufacturing partner used by our customers for the products that we manufacture for them.

Our revenues for the year ended June 27, 2025 (“fiscal year 2025”) increased by $536.3 million, or 18.6%, from $2.88 billion for the year ended June 28, 2024 (“fiscal year 2024”) to $3.42 billion for fiscal year 2025.

Our percentage of revenues from optical communications products decreased from 79.4% in fiscal year 2024 to 76.6% in fiscal year 2025, while our percentage of revenues from automotive, industrial lasers, and other markets increased from 20.6% in fiscal year 2024 to 23.4% in fiscal year 2025.

The products that we manufacture for our OEM customers include:

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We believe we offer differentiated manufacturing services through our optical and electro-mechanical process technologies and our strategic alignment with our customers.

Our dedicated process and design engineers, who have a deep knowledge in materials sciences and physics, are able to tailor our service offerings to accommodate our customers’ complex

engineering assignments.

Our range of capabilities, from the design of customized optics and glass through process engineering and testing of finished assemblies, provides us with a knowledge base that we believe often leads to improvements in our customers’ product development cycles, manufacturing cycle times, quality and reliability, manufacturing yields and end product costs.

We offer an efficient, technologically advanced and flexible manufacturing infrastructure designed to enable the scale production of low-volume, high-mix products, as well as high-volume products.

Our dedicated process and design engineers, who have a deep knowledge in materials sciences and physics, are able to tailor our service offerings to accommodate our customers’ complex engineering assignments.

Our range of capabilities, from the design of customized optics and glass through process engineering

and testing of finished assemblies, provides us with a knowledge base that we believe often leads to improvements in our customers’ product development cycles, manufacturing cycle times, quality and reliability, manufacturing yields and end product costs.

We offer an efficient, technologically advanced and flexible manufacturing infrastructure designed to enable the scale production of a wide variety of high complexity products in any mix and any volume.

We specialize in complex prototype and new product introduction services, with specialized resources to meet customers’ quick-turn printed circuit board assembly (“PCBA”) and early stage manufacturing requirements.

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• complex printed circuit board assembly;

• customized software tools for low-volume, high-mix manufacturing;

• customized software tools for manufacturing high complexity products in any mix and any volume;

• turn-key manufacturing systems;

8 unchanged sentences

We believe our advanced manufacturing technologies, coupled with our broad engineering capabilities, give us the ability to identify opportunities to improve our customers’ manufacturing processes and provide meaningful production cost benefits.

We have also developed a series of customized software tools that we believe provide us with a specialized ability to manage the unique aspects of low-volume, high-mix production.

We have also developed a series of customized software tools that we believe provide us with a specialized ability to manage the unique aspects of the production of a wide variety of high complexity products in any mix and any volume.

• Customizable Factory-Within-a-Factory Production Environment:

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• Turn-Key Supply Chain Management:

We have created a proprietary set of automated manufacturing resource planning tools designed specifically to address the unique inventory management demands of “low-volume, high-mix” manufacturing.

Over the years, we have developed strong relationships with thousands of suppliers and implemented inventory management strategies with many of them, which enables us to obtain inventory on an as-needed basis and provide on-site stocking programs.

We believe our deep expertise, relationships and capabilities

in supply chain and materials management often allows us to further reduce costs and cycle times for our customers.

We have created a proprietary set of automated manufacturing resource planning tools designed specifically to address the unique inventory management demands of the production of a wide variety of high complexity products in any mix and any volume.

Over the years, we have developed strong relationships with thousands of suppliers and implemented inventory management strategies with many of them,

which enables us to obtain inventory on an as-needed basis and provide on-site stocking programs.

We believe our deep expertise, relationships and capabilities in supply chain and materials management often allows us to further reduce costs and cycle times for our customers.

Our Growth Strategy

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Our manufacturing services are incorporated into products that are distributed in markets worldwide, but we intend to further build out our client base in strategic regions.

We intend to focus on expanding our client base in Europe, Asia-Pacific, the Middle East and the United States.

We intend to continue our focus on expanding our client base in Europe, Asia-Pacific, the Middle East and the United States.

We believe these regions have a large and robust optics market, as well as a need for advanced manufacturing services in other growth markets, and would benefit from our precision optical and electromechanical manufacturing services.

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In the case of a new product design, we may assist in assembling one or more prototype products using the same production line and the same engineering and manufacturing teams that would be used for product qualification and volume production.

We often transfer production from a customer’s internal prototype or production lines to our own facilities, requiring a copy-exact:

We often transfer production from a

customer’s internal prototype or production lines to our own facilities, requiring a copy-exact:

the setup of a production process identical to the one used by our customer to minimize the number of variables and expedite qualification.

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We believe the integration of our manufacturing and test controls, quality systems, and software platforms contribute significantly to our ability to deliver high-quality products on a consistent basis and reduce the risk that we will be required to repair or replace defective products.

Our manufacturing execution system (“MES”) is directly integrated with our test system

and enterprise resource planning (“ERP”) database allowing us to respond to any process deviations in real time.

Our manufacturing execution system (“MES”) is directly integrated with our test system and enterprise resource planning (“ERP”) database allowing us to respond to any process deviations in real time.

We work with customers to develop product-specific test strategies.

We also provide a variety of test management services, including material and process testing and reliability testing.

In addition to providing yield, manufacturing data tracking and other information, our data tracking system also performs process route checking to ensure that the products follow correct process steps, and the test results meet all specified criteria.

In addition to providing yield, manufacturing data tracking and other information, our data tracking system also performs process route checking to ensure that products follow the correct process steps and that test results meet all specified criteria.

Our test capabilities include traditional PCBA testing, mechanical testing and optical testing, which includes parametric testing, such as insertion loss, return loss and extinction ratio, and functional testing (e.g., bit error ratio).

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We use our fiber metallization and fiber lensing capabilities to assist our customers in packaging their products.

Many optical component package designs require metallized fiber and

some designs also require lensing at the tip of the fiber.

Many optical component package designs require metallized fiber and some designs also require lensing at the tip of the fiber.

We have in-house capabilities that enable us to produce these products at a low cost, with short lead times and high quality.

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Therefore, we expect a significant percentage of our revenues will continue to come from a small number of customers.

During fiscal years 2024 and 2023, we had two and four customers, respectively, that each contributed 10% or more of our revenues.

During fiscal years 2025 and 2024, we had two customers that each contributed 10% or more of our revenues.

During fiscal year 2025, NVIDIA Corporation and Cisco Systems, Inc.

contributed 27.6% and 18.2%, respectively, of our revenues.

During fiscal year 2023, Cisco Systems Inc., Lumentum Operations LLC, Nvidia Corporation, and Infinera Corporation contributed 15.6%, 15.4%, 12.5%, and 12.4%, respectively, of our revenues.

During fiscal year 2024, NVIDIA Corporation and Cisco Systems, Inc.

contributed 35.1% and 13.4%, respectively, of our revenues.

The production of optical devices is characterized by a lengthy qualification process.

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Our manufacturing operations use a wide variety of optical, semiconductor, mechanical and electronic components, assemblies and raw materials.

We generally purchase materials from our suppliers through standard purchase orders, as opposed to long-term supply agreements.

We generally purchase materials from suppliers through standard purchase orders, as opposed to long-term supply agreements.

We rely on sole-source suppliers for a number of critical materials.

Some of these sole-source suppliers are small businesses, which presents risks to us based on their financial health and reliability, which we continually monitor.

We have historically experienced supply shortages resulting from various causes, including reduced yields by our suppliers, which have prevented us from manufacturing products for our customers in a timely manner.

While we continually undertake programs to strengthen our supply chain, we are experiencing, and expect to experience for the foreseeable future, strain on our supply chain, as well as periodic supplier problems.

We have historically experienced supply shortages resulting from various causes, including reduced yields by suppliers, which have prevented us from manufacturing products for our customers in a timely manner.

Furthermore, in some cases, our efforts to identify and secure alternative supply chain sources has resulted in our customers or their end customers requiring requalification and validation of components, a process that can often be lengthy and has negatively impacted the timing of our revenue.

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ISO/IEC 17025 for Testing and Calibration Laboratories Certification;

and ISO 22301 for Business Continuity Management Systems.

ISO 22301 for Business Continuity Management Systems;

and ISO/IEC 27001 for Information Security Management Systems.

We also maintain compliance with various additional standards imposed by the U.S.

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We hold the following additional certifications:

ANSI ESD S20.20 for facilities and manufacturing process control, in compliance with ESD standard;

Transported Asset Protection Association ("TAPA") and Custom and Trade Partnership Against Terrorism ("C-TPAT") for Logistic Security Management System;

ANSI ESD S20.20 for facilities and manufacturing process control;

Transported Asset Protection Association (“TAPA”) and Customs Trade Partnership Against Terrorism (“CTPAT”) for logistics security and management;

and CSR-DIW for corporate social responsibility in Thailand.

13 unchanged sentences

• our responsiveness and flexibility.

Competitors in the market for optical manufacturing services include Benchmark Electronics, Inc., Celestica Inc., Sanmina-SCI Corporation, Jabil Circuit, Inc.

and Venture Corporation Limited, as well as the internal manufacturing capabilities of our customers.

Our customized optics and glass operations face competition from companies such as Fujian Castech Crystals, Inc., Photop Technologies, Inc.

and Research Electro-Optic, Inc.

Competitors in the market for optical manufacturing services include Benchmark Electronics, Inc., Celestica Inc., InnoLight Technology (Suzhou) Ltd., Jabil Inc., Sanmina Corporation and Venture Corporation Limited, as well as the internal manufacturing capabilities of our customers.

Our customized optics and glass operations face competition from companies such as CASTECH Inc., Excelitas Technologies Corp.

and Photop Technologies, Inc.

(a subsidiary of Coherent Corp.).

Intellectual Property

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There have been a number of proposed changes in the tax laws that could increase our tax liability.

The Organization for Economic Co-operation and Development (OECD) announced that it has reached agreement among its member countries to implement Pillar Two rules, a global minimum tax at 15% for certain multinational enterprises.

As part of the Organization for Economic Cooperation and Development’s (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting, over 140 countries have joined a two-pillar plan to reform international taxation rules.

The first pillar is focused on the allocation of taxing rights between countries for in-scope multinational enterprises that sell goods and services into countries with little or no local physical presence and is intended to apply to multinational enterprises with global revenues above €20 billion.

The second pillar is focused on developing a global minimum tax rate of at least 15% applicable to in-scope multinational enterprises and is intended to apply to multinational enterprises with annual consolidated group revenue in excess of €750 million.

The OECD has issued Pillar Two model rules and continues to release guidance on these rules.

Many jurisdictions have enacted tax laws that will take effect in 2024 and 2025 to implement Pillar Two rules.

Other countries have announced plans to adopt tax laws to implement similar legislation with varying effective dates in the future.

Certain jurisdictions in which we operate have not adopted corresponding legislation to date.

These changes could increase tax uncertainty and may adversely affect our provision for income taxes and operating results.

We will continue to monitor legislative and regulatory developments to assess the impact on our business, financial condition and operating results.

As of June 27, 2025, these rules are either effective or have been adopted in draft form in various countries.

We evaluated the applicable tax law changes resulting from Pillar Two implementation in the countries where we operate, and there was no material impact to our tax provision for the year ended June 27, 2025.

In future years, the Pillar Two framework for the global minimum tax may increase the level of income tax in both Thailand and other foreign jurisdictions where we operate or have a presence.

Social Responsibility

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enter into sales contracts or purchase orders directly with their customers.

We have inter-company agreements with certain of our subsidiaries in Thailand and the U.S.

to provide manufacturing services to us, and we have inter-company agreements with certain of our subsidiaries in the U.S.

We have an inter-company agreement with our subsidiary in Thailand to provide manufacturing services to us, and we have inter-company agreements with certain of our subsidiaries in the U.S.

and Singapore to provide certain administrative and business development services to us.

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Of our total workforce, approximately 16,012 employees were involved in manufacturing operations and 445 employees were involved in business development and general and administrative functions.

None of our employees are represented by a labor union.

None of our employees

are represented by a labor union.

We have not experienced any work stoppages, slowdowns, or strikes.

2 unchanged sentences

We advertise job openings and source candidates broadly to attract a diverse candidate pool.

We also monitor hiring, termination and pay

practices to ensure compliance with established regulations across the world, and we track and report internally on key talent metrics including talent pipeline, employee promotions, employee turnover, and engagement of our employees.

We also monitor hiring, termination and pay practices to ensure compliance with established regulations across the world, and we track and report internally on key talent metrics including talent pipeline, employee promotions, employee turnover, and engagement of our employees.

We provide employee career guidance and counseling through established employee development and training opportunities.

6 unchanged sentences

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-K

Item 1. Business