Chris Coldren: I was just going to say that to reiterate that I think Ananda is hitting a key point that we have had a deliberate strategy to build out both technology, manufacturing on the component capabilities over the last N number of years, and then that’s translated into now getting more pluggable transceiver capabilities. And as Alan highlighted, as that all has come together now, we’ve got time to put all those pieces together and fully realize the benefits of those acquisitions and the post-acquisition organic work we are performing to really unlock the value and the multiplier effect between all of these acquisitions. But we are continuing to look. We are not done, if you will, building out our technology and product portfolios. But for the time being, we’ve got a lot of work to do to realize the maximum potential of what we’ve already taken on.
Ananda Barua: Thanks, guys.
Kathy Ta: Thanks, Ananda.
Operator: Your next question comes from the line of Mike Genovese from Rosenblatt Securities. Please go ahead.
Mike Genovese: Great. Thanks. First, can you talk — can you guys talk more about the optical switch opportunity for AI? How — more about that technology and sort of how far away revenues are? And is that a MEMS-based product? I’m curious.
Chris Coldren: Hey, Mike. So, in today’s data centers, obviously, there’s a lot of bandwidth going around and as we’ve seen in core telecom networks for years being able to reconfigure the network optically and electronically brings a lot of value in hyperscale network operators or cloud operators rather, are beginning to realize that being able to reconfigure bandwidth optically within data centers is a key capability. There’s a range of technology that can be applied. In our case, it’s certainly will involve MEMS. I would say, in terms of time to market, a little premature to talk about an exact timeframe, but I think over the next year, you’re going to hear a lot more about it as prototypes begin to ship.
Mike Genovese: Okay, great. Thanks, Chris. And I guess something maybe more immediate then, your competitor yesterday spoke about some near-term opportunity where they expected sequential growth because of some transport opportunities in China, WSS, ROADMs and AMPs. Are you seeing anything similar to that?
Alan Lowe: Yeah. I mean we’ve seen the China mobile tender is happening, and it’s really — it’s kind of nice to get a customer to expedite WSSs and the components that go around them. So, we’ve been in the midst of that, and we’re trying to meet that demand for tender. And I think it’s meaningfully large and it’s an opportunity and I think one that will drive calendar ’24 volumes more meaningful for that specific opportunity. But that’s, I think, more of a unique situation where the deployments are happening — or the bidding is happening and the deployments will happen early parts of next year. So yes, that is an opportunity. We are seeing that. And I’ve been on the phone with the executives there to help them get what they need when they need it.
Mike Genovese: Okay. Perfect. Thanks for the color. Thanks, Alan.
Alan Lowe: Thanks, Mike.
Kathy Ta: Thank you, Mike.
Operator: Question comes from the line of Ruben Roy from Stifel. Please go ahead.
Ruben Roy: Yeah, thank you. To just follow up there, Alan, you did mention that you’re — I think, over the last 90 days, it sounded like you started to see some areas of telco softness. I was wondering if that was a geography-based comment or customer or end market-based comment. Any additional detail there, please.
Alan Lowe: I think it’s just echoing what I think you’ve heard from some of our network equipment manufacturers around regional softness and an inventory at the North America carriers. So I don’t think it’s anything new and enlightening. It’s kind of more of the same that we’ve seen that is making us be cautious about the outlook for current quarter and into early calendar ’24.
Ruben Roy: Okay. Got it. Thank you. And then as a follow-up, probably for Chris. With even more focused on data center optics, I was wondering if you can give us an update on how you’re thinking about the coherent DSP project? And whether or not longer term, you think there’s spot for that team and what you’re planning on with data center optics there?
Chris Coldren: Yeah. So certainly, we continue to make great progress in developing our coherent DSP, which is one of — another puzzle piece, if you will, in our pluggable module strategy. So, we expect that we will start evaluating our latest 400-gig parts in calendar ’24, early calendar ’24. And yeah, I think it’s a critical capability both for the data center interconnect opportunity. And over the longer run, in fact, we expect that technology to penetrate further inside of the data center as well, I think you referenced.
Alan Lowe: And maybe if I could add to that, Ruben…
Ruben Roy: Thank you.
Alan Lowe: If I could add to that as well, we have been building out not only our DSP team but other RFIC team to have critically-enabling components in-house to address that margin stacking of the independent IC company. So that — those teams have been building out, and we’ve started to see the benefits of things like TIAs and drivers that having that in-house is a big benefit for us.
Ruben Roy: Very helpful. Thank you.
Alan Lowe: Sure.
Kathy Ta: Thanks, Ruben.
Operator: And we have our next question coming from the line of Dave Kang from B. Riley. Please go ahead.
Dave Kang: Thank you. Good morning. First question is regarding your comments on telecom. So, how much decline are we — should we expect in the December quarter? Are we talking a slight decline or still like a high-single digit to maybe even double-digits?
Alan Lowe: Yeah, I don’t think we had indicated that there’d be a decline. I think what we’re indicating is that we’re still shipping below end customer consumption. And so, it’s muted with respect to being back to parity with regard to us building and shipping what our customers are shipping and deploying. And so that’s more the comments than it’s going the wrong direction because we’re already at a very low level.
