With sequential growth in all of the end markets that we track, total revenue was $479.3 million.
Non-GAAP operating margins of 9.5% were at the highest level in two years and helped produce record non-GAAP earnings of $1.21 per share.
Revenue of $479.3 million was above our guidance range, and non-GAAP earnings of $1.21 also exceeded our guidance.
Optical communications was $361.7 million or 75% of total revenue, up 4% from Q2.
Non-optical communications revenue was $117.6 million or 25% of total revenue and increased 11% from Q2.
Within optical communications, telecom revenue was $283.5 million, up 4% from last quarter.
Datacom revenue was $78.3 million, up 5% sequentially.
Silicon photonics remains an important revenue driver at 22% of total revenue or $105.4 million, up 4% from Q2.
Revenue from 100G products increased 8% sequentially to $138.6 million but remains below peak levels as growth from faster data rate products continues to accelerate.
Revenue from 400G and faster was $105.1 million, up 1% from last quarter and more than tripled from a year ago.
Automotive has grown to become the largest category for the third quarter in a row with record revenue of $52.5 million in the third quarter, up 12% sequentially, driven primarily by growth from new automotive programs.
Industrial laser revenue was $36.1 million, up 7% from Q2.
Sensor revenue was $4.1 million and other non-optical communications revenue was up 10% to $24.8 million.
Gross margin was 12.2%, up from 12.1% in Q2 and in line with our target range of 12% to 12.5%.
Operating expenses in the quarter were $12.7 million or 2.6% of revenue, reflecting our ability to grow revenue without meaningful increases in operating expenses.
This produced record operating income of $45.6 million or 9.5% of revenue, the highest level in two years.
Taxes in the third quarter were $1.6 million and our normalized effective tax rate was 4%.
We continue to anticipate an effective tax rate of about 4% for the year.
Non-GAAP net income was a record at $45.4 million or $1.21 per diluted share.
On a GAAP basis, net income was also a record at $27.5 million or $1 per diluted share.
At the end of the third quarter, cash, restricted cash and investments were $508.9 million.
Operating cash flow was a strong $23.8 million.
With capex of $6.4 million, free cash flow was $27.5 million in the third quarter.
During the quarter, we repurchased approximately 15,000 shares at an average price of $80.64 for a total cash outlay of $1.2 million.
We expect total revenue in the fourth quarter to be between $475 million and $495 million and earnings per share to be in the range of $1.18 to $1.25 per diluted share.

Summary:
With sequential growth in all of the end markets that we track, total revenue was $479.3 million.
Non-GAAP operating margins of 9.5% were at the highest level in two years and helped produce record non-GAAP earnings of $1.21 per share.
Revenue of $479.3 million was above our guidance range, and non-GAAP earnings of $1.21 also exceeded our guidance.
Non-GAAP net income was a record at $45.4 million or $1.21 per diluted share.
We expect total revenue in the fourth quarter to be between $475 million and $495 million and earnings per share to be in the range of $1.18 to $1.25 per diluted share.