International revenue represented 20.3% of total revenue for the three months ended March 31, 2025, increasing from 20.1% for the same period in the prior year.

The company highlights the expansion of generative AI computing and distributed applications, emphasizing the need for high-bandwidth, scalable networks and Ethernet solutions.

The company is investing in expansion into adjacent markets, including campus and Wi-Fi networking, Al networking, cloud and enterprise routing markets, and network security markets.

Operating expenses increased by $76.1 million, or 22.3%, primarily driven by a $25.1 million increase in personnel costs due to headcount growth, and a $19.3 million increase in new product introduction costs.

Management continues to actively monitor the impact of macroeconomic factors on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce.

During the three months ended March 31, 2025, we repurchased a total of $787.1 million of our common stock under our Existing Repurchase Program.

Escalated or escalating U.S. tariffs, as well as countermeasures taken by affected countries, may have a negative effect on global economic conditions, financial markets and our business.

Large purchases by a limited number of customers continue to represent a substantial portion of our revenue, and any loss, delay, decline or other change in expected purchases could result in material quarter-to-quarter fluctuations of our revenue or otherwise adversely affect our results of operations.

We have entered into significant purchase commitments and are susceptible to supply shortages, extended lead times or supply changes, which could disrupt or delay our scheduled product deliveries to our customers and may result in the loss of sales and customers.

We face intense competition, especially from larger, well-established companies and industry consolidation may lead to further increased competition, which may harm our business, financial condition, results of operations and prospects.

Primarily reliant upon a predominant merchant silicon vendor.

The networking market is rapidly evolving. If this market does not evolve as we anticipate or our target customers do not adopt our networking solutions, we may not be able to compete effectively, and our ability to generate revenue will suffer.

We base our inventory requirements on our forecasts of future sales. If these demand forecasts materially change from our initial projections, we may procure inventory that we may be unable to use in a timely manner or at all.

Managing the supply of our products and product components is complex. Insufficient component supply and inventory and the time to manufacture our products may result in lost sales opportunities or delayed revenue, while excess inventory may harm our gross margins.

We depend on third-party contract manufacturers to build our product lines. A significant portion of our cost of revenue consists of payments to these third-party contract manufacturers.

Research and development expenses increased by $58.0 million, or 27.8% for the three months ended March 31, 2025, compared to the same period in 2024.

The company highlights the expansion of generative AI computing and distributed applications, emphasizing the need for high-bandwidth, scalable networks and Ethernet solutions.

The networking market is rapidly evolving. If this market does not evolve as we anticipate or our target customers do not adopt our networking solutions, we may not be able to compete effectively, and our ability to generate revenue will suffer.

During the three months ended March 31, 2025, we repurchased a total of $787.1 million of our common stock under our Existing Repurchase Program.

In May 2025, our board of directors authorized and announced a new $1.5 billion stock repurchase program.

We have not paid dividends in the past and do not intend to pay dividends for the foreseeable future.

We are also subject to environmental laws and regulations governing the management and disposal of hazardous materials and wastes, including the hazardous material content of our products and laws relating to the collection, recycling and disposal of electrical and electronic equipment.

We are subject to the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”), the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the United Kingdom Bribery Act 2010, and possibly other anti-bribery and anti-corruption laws and anti-money laundering laws in countries outside of the United States where we conduct our activities.

We may experience reluctance or refusal by current or prospective customers in the European Economic Area (the 'EEA'), the UK, or other regions to use our products, and we may find it necessary or desirable to make further changes to our handling of personal data of residents of the EEA, UK, or other regions.

Global economic and business activities continue to face widespread macroeconomic uncertainties, including the effects of, among other things, inflation, monetary policy shifts, recession risks, potential supply chain disruptions, changes in government administration policy positions, and geopolitical pressures, including escalating international trade measures and tariff uncertainty.

Enhanced U.S. trade restrictions affecting China and other countries, including export controls, import regulations, and foreign investment regulations, as well as countermeasures taken by affected countries may have a negative effect on global economic conditions, financial markets and our business.

Issues in the development and use of artificial intelligence, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.