Oct 22, 2026 earnings call — Record quarter, N+M ramp and Ophir acquisition
Record quarter with over $1.2 billion in revenue and raised full year guidance to $4.49 billion.
Revenue $1.2B (est $1.1B) · EPS $1.46 (est $1.25) · Next-quarter revenue outlook $1.4B–$1.4B
Key quotes
"it is currently about 30% of the data center and networking activities, and it will grow next year to about 50% of that of that group."
"We are acquiring Ophir business for an all cash purchase of $650 million as a carve out from MKS."
"We achieved a sales of $1.2 billion and non GAAP EPS of $1.46 per diluted share both above our guidance and both all time quarterly highs."
Analyst Q&A 6
New product share and M&A plans
Q (Steven Fox · Fox Advisors): Analyst asked how much of the quarter came from the new N+M product, where yields and scale stand, and how dominant it is in PCB sales. He also asked about recent M&A, how it was financed, and potential for more deals and balance sheet impact.
A: Management said N+M is already a big part of their data center and networking work and will grow further, with 3 major programs (2 doing well, 1 delayed by customer schedule) and more programs coming. They said the big M&A is mostly done, they will focus on strengthening the balance sheet, expect positive free cash flow next year, and noted interest expense is up about 20 million a quarter from recent debt.
"it is currently about 30% of the data center and networking activities, and it will grow next year to about 50% of that of that group." — Edwin Roks (CEO)
Data center shortfall and N+M size
Q (William Stein · Truist): Analyst asked why the data center networking revenue was about 10% below prior guidance — supply, yield, or something else — and asked for an update on the prior N+M numbers of roughly 200 in Q3 and 400 in Q4.
A: Management said the shortfall was not due to supply or yield, but to customer project timing and normal program fluctuations; 2 of 3 programs are doing well and the third ramps in the second half of Q4 and is fully in production in Q1. They said N+M was about 30% of the data center and networking business in Q3 (call it 31% of about 400 million) and they expect about the same percentage in Q4 of a roughly 700 million forecast, so slightly more than 200 and slightly below 400.
"In Q3, of the full data center networking business, it was about 30% of our business was based on N+M." — Edwin Roks (CEO)
Material lead times, pricing, and margins
Q (Mike Crawford · B. Riley): Analyst asked about supply availability and lead times for key materials like CCL and T glass and how the company passes on price increases. He also asked if N+M ASPs are above corporate average gross margin and if gross and EBITDA margins will improve into 2027.
A: Management said lead times are lengthening — typically around 12 weeks, sometimes 24 weeks or longer depending on material — but they are handling supply well. They said costs are rising, they are transparent with customers who accept price increases, N+M has higher ASPs and adds value, and the company expects gross margin and EBITDA margin improvement, with EBITDA rising by more than 200 basis points next year.
"Lead times let's say, are, let's say, in the order of, let's say, 12 weeks sometimes a bit longer, sometimes 24 weeks, sometimes even a bit longer depending on the on the materials." — Edwin Roks (CEO)
Q4 data center drivers and $400M capacity
Q (Ruben Roy · Stifel): Analyst asked whether the Q4 data center guide of about $700 million is driven by higher customer demand or recovery of previously delayed N+M programs, and asked about customer volume visibility and commitments against the announced $400 million capacity expansion.
A: Management said the Q4 change is driven by program timing shifts and that these programs move around; they noted N+M is about 30% of the 670 million commercial figure cited. They said the $400 million sits on top of a €1.2 billion expansion through 2029, that the $400 million is focused on N+M, and that they use a brownfield approach to add capacity quickly.
"So I would say the 400 million is pure N+M, rounding numbers here." — Edwin Roks (CEO)
2027 growth drivers and A&D non-PCB share
Q (Jim Ricchiuti · Needham): Analyst asked how much of the preliminary 2027 growth comes from higher N+M expectations or from organic growth in aerospace and defense and other end markets. He also asked how much of the A&D business will be non-PCB after the Epic and Ophir acquisitions.
A: Management said revenue this year is about $4.4 billion to $4.5 billion, a 48% year-over-year increase, and they expect to grow about 50% next year with a substantial part driven by N+M. They said other end markets (medical, industrial, instrumentation, automotive, aerospace and defense) are also growing — aerospace and defense will do better next year — and that about half of their aerospace and defense business today is 'up the chain' (sensing and communication); they added all acquisitions together represent about 500 million of the roughly $6.75, 6.5 billion next year.
"At the moment, if you look at our air space and defense business, about half of it is what we call up the chain." — Edwin Roks (CEO)
Ophir growth drivers and 2027 market split
Q (William Stein · Truist): Analyst asked what drives the large expected EBITDA growth for Ophir — backlog already in place or new design wins after close — and asked if the company will provide an end-market percentage split for 2027.
A: Management said Ophir is over 85% booked for 2027 and they tend to beat forecast, that the purchase multiple near 10x (10.3) is attractive, and that synergies were not included in the base case but will be large. On the 2027 end-market split, they said it is too early to give an exact breakdown but they will provide more color and aim to give a split on the next call.
"if you look at the bookings, for 2027, Ophir is over 85% booked." — Edwin Roks (CEO)