SUGAR LAND, Texas, June 11, 2024 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ:AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today announced that it is set to join the broad-market Russell 3000® Index at the conclusion of the 2024 Russell US Indexes annual reconstitution, effective at the open of US equity markets on Monday, July 1st, according to a preliminary list of additions posted ...

SUGAR LAND, Texas, June 11, 2024 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today announced that it is set to join the broad-market Russell 3000® Index at the conclusion of the 2024 Russell US Indexes annual reconstitution, effective at the open of US equity markets on Monday, July 1st, according to a preliminary list of additions posted ...

bopavAs micro and small caps have languished for 2 years now, the pain has grown for those who did not manage positions and position sizing well. For those who can get over the short-term hurt, I have never seen better long-term opportunities in select micro-cap companies. We are a few weeks away from the annual Russell 2000 rebalancing. This is often the biggest trading day of the year as dozens of stocks get added to the index. The Russell 2000 inclusion list has been getting updated each of the past ...

Investing in early bird innovators always presents risks but these types of tech stocks to buy generally offer the biggest upside potential. Sure, you can always bet on Nvidia (NASDAQ:NVDA) like everyone else. However, there may be much more robust rewards to be had betting on lesser-known enterprises.It’s a tradeoff between predictability and profitability. By going after a well-established enterprise, you have reasonable assurances that the investment will rise in value. However, the upside could be limit ...

SUGAR LAND, Texas, June 03, 2024 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today announced the Company will virtually present via a fireside chat format at the following investor conference: Event:Rosenblatt 4th Annual Technology Summit: The Age of AIDate:Wednesday, June 12th, 2024Presentation Time:10:00 a.m. Eastern time / 9:00 a.m. Ce ...

As a rule of thumb, overlooked low-priced stocks are that way for a reason. And usually, that reason isn’t particularly a good one. Still, there are a few “cheap” enterprises that can give you more than you bargained for but in the accretive sense.Simply put, there are thousands of publicly traded opportunities available. While analysts attempt to find the best ideas, they can’t give equal coverage to everyone. Invariably, then, some worthy businesses slip through the cracks.While the below names might not ...

Financial Data and Key Metrics - Revenue for Q1 2024 was $40.7 million, below the guidance range of $41 million to $46 million [8] - Non-GAAP gross margin was 18.9%, below the guidance range of 21% to 23%, primarily due to product mix [8] - Non-GAAP loss per share was $0.31, within the guidance range of a loss of $0.28 to $0.33 [8] - Total cash, cash equivalents, short-term investments, and restricted cash at the end of Q1 was $17.4 million, down from $55.1 million at the end of Q4 2023 [22] Business Line Data and Key Metrics - Data center product revenue was $29 million, up 42% year-over-year but down 35% sequentially [9] - CATV segment revenue was $8.7 million, down 59% year-over-year and 30% sequentially [9] - Telecom product revenue was $2.3 million, down 39% year-over-year and 19% sequentially [19] - 71% of Q1 revenue came from data center products, 22% from CATV, and 7% from FTTH telecom and other [13] Market Data and Key Metrics - Revenue from 100G products increased 33% year-over-year, while 400G product revenue more than doubled [9] - 73% of data center revenue in Q1 was from 100G products, 17% from 200G and 400G transceivers, and 3% from 40G transceivers [14] - The company shipped final qualification units of DOCSIS 4.0 amplifiers last week, with revenue expected to begin by the end of Q2 [18] Company Strategy and Industry Competition - The company is accelerating development of 800G and 1.6 terabit products to meet increased demand for AI infrastructure [11] - AOI is positioning itself as a leader in DOCSIS 4.0 technologies, with products designed for next-generation network deployments [24] - The company expects to achieve non-GAAP profitability in 2024, driven by improvements in the second half of the year [10] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about the second half of 2024, citing constructive customer interactions and strong long-term demand drivers [10] - The transition to DOCSIS 4.0 is expected to begin in Q3, with significant revenue ramp anticipated in the second half of the year [17] - The company expects improving gross margins throughout 2024 as product mix improves and CATV revenue ramps [20] Other Important Information - The company participated in the Needham Technology, Media, and Consumer Conference on May 16th [7] - AOI management will host its Q2 2024 earnings call on August 8, 2024 [7] Q&A Session Summary Question: Full-year revenue target of $300 million - Management believes the $300 million revenue target is still achievable despite a slow start to the year [28] Question: Operating expense expectations - R&D spending has increased due to accelerated product development timelines, with operating expenses expected to range between $24 million and $26 million per quarter [30] Question: Product roadmap and 400G revenue - The company is transitioning to higher-speed products, with 400G revenue representing 17% of data center revenue in Q1 [32][33] Question: Microsoft's order trends and 800G opportunities - Microsoft's 400G product adoption has been slower than expected, but the company expects orders to ramp in Q3 and Q4 [37] - The 800G market opportunity is several times larger than the 400G opportunity, with significant revenue potential from both existing and new customers [46] Question: Data center revenue ramp and CATV contribution - Data center revenue is slightly ahead of plan, while CATV revenue is ramping slower than expected but is expected to contribute meaningfully in the second half of the year [48] Question: 800G product qualification and production - The company is in detailed discussions with multiple customers for 800G products, with production expected to ramp in Q3 2024 [49][52] Question: 800G AOC development with Creta - The company has not provided specific details on production schedules for the 800G AOC developed with Creta [61]

Revenue Performance - Revenue for the three months ended March 31, 2024, was $40,673,000, a decrease of 23.3% compared to $53,030,000 for the same period in 2023[118]. - Data center revenue increased by 42.4% to $28,986,000, representing 71.3% of total revenue, while CATV revenue decreased by 68.6% to $8,736,000, representing 21.5% of total revenue[121]. - The company’s top ten customers accounted for 92% of revenue in the three months ended March 31, 2024, highlighting the need for diversification in the customer base[122]. Profitability and Loss - Gross profit for the three months ended March 31, 2024, was $7,591,000, with a gross margin of 18.7%, compared to a gross profit of $9,244,000 and a margin of 17.4% in the same period of 2023[118]. - The net loss for the three months ended March 31, 2024, was $23,170,000, or 57.0% of revenue, compared to a net loss of $16,292,000, or 30.8% of revenue, in the same period of 2023[118]. - Comprehensive loss increased by $10.2 million, or 69.5%, for the three months ended March 31, 2024, primarily due to the increase in net loss and foreign currency translation adjustments[134]. Operating Expenses - Operating expenses totaled $29,237,000, representing 71.9% of revenue, with research and development expenses increasing to $11,712,000, or 28.8% of revenue[118]. - Research and development expenses increased by $3.2 million, or 37.2%, for the three months ended March 31, 2024, primarily due to increased personnel-related expenses and project costs[126]. - Sales and marketing expenses increased by $1.5 million, or 63.2%, for the three months ended March 31, 2024, driven by business development efforts on quantum bandwidth products[127]. - General and administrative expenses increased by $1.2 million, or 9.4%, for the three months ended March 31, 2024, mainly due to higher legal fees and share-based compensation[128]. Cash Flow and Financing - For the three months ended March 31, 2024, net cash used in operating activities was $28.5 million, compared to $9.4 million for the same period in 2023, reflecting a significant increase in cash outflow[143][144]. - Net cash used in investing activities for the three months ended March 31, 2024, was $8.1 million, up from $0.8 million in the same period of 2023, primarily due to the purchase of additional plant, machinery, and equipment[145]. - Net cash used in financing activities for the three months ended March 31, 2024, was $1.4 million, a decrease from a cash inflow of $1.1 million in the same period of 2023, attributed to net repayment of bank acceptance[146]. - The company sold approximately 270,000 shares of common stock with gross proceeds of approximately $4.0 million under the current ATM Offering[139]. Strategic Initiatives - The company has entered into a five-year supply agreement with Microsoft to design and manufacture data center products, indicating a strategic focus on expanding partnerships[122]. - The company anticipates increased demand for 400G data center products through the end of 2024 based on customer forecasts[122]. - The company operates three manufacturing sites in Sugar Land, Texas, Ningbo, China, and Taipei, Taiwan, with a focus on maintaining domestic production capacity for competitive advantage[110]. - The company is experiencing a transition in the CATV market due to the shift from DOCSIS 3.1 to DOCSIS 4.0, impacting order volumes for older products[121]. Financial Position - As of March 31, 2024, the company had $29.4 million of unused borrowing capacity from all loan agreements and cash, cash equivalents, and restricted cash totaling $17.4 million[135]. - As of March 31, 2024, the company had $29.4 million of unused borrowing capacity and a total loan balance of $24.1 million from various lenders in China[147][152]. - The company anticipates future capital requirements will depend on growth rate, R&D spending, and expansion of sales and marketing activities, with cash and cash equivalents decreasing by approximately $37.7 million compared to December 31, 2023[151]. - The construction of a new factory in Ningbo, China, is estimated to cost approximately $27.5 million, with $27.4 million already paid as of March 31, 2024[150]. - The company issued $80.2 million of 5.25% convertible senior notes due in 2026 on December 5, 2023, following the payoff of $80.5 million of 5% convertible senior notes due in 2024[148]. Economic Environment - The annual inflation rate in the US was 3.4% in 2023, which has not materially impacted the company's sales or operating results during the three months ended March 31, 2024[154]. - The net loss for the three months ended March 31, 2024, was $23.2 million, which included non-cash items of $10.2 million, while the net loss for the same period in 2023 was $16.3 million[143][144]. - Interest income increased by $0.2 million, or 688.3%, for the three months ended March 31, 2024, due to higher saving balances and interest rates[130].

Revenue Performance - Q1 2024 GAAP revenue was $40.7 million, a decrease from $53.0 million in Q1 2023 and $60.5 million in Q4 2023[2] - Total revenue for Q1 2024 was $40.673 million, a decrease from $53.030 million in Q1 2023[16] - Q2 2024 revenue is expected to be in the range of $41.5 million to $46.5 million[3] Gross Margin - Q1 2024 GAAP gross margin was 18.7%, compared to 17.4% in Q1 2023 and 35.7% in Q4 2023[2] - Q2 2024 non-GAAP gross margin is expected to be in the range of 25.5% to 27.5%[3] Net Loss - Q1 2024 GAAP net loss was $23.2 million, or $0.60 per basic share, compared to a net loss of $16.3 million in Q1 2023 and $13.9 million in Q4 2023[2] - Q1 2024 non-GAAP net loss was $12.0 million, or $0.31 per basic share, compared to a non-GAAP net loss of $7.1 million in Q1 2023 and a non-GAAP net income of $1.6 million in Q4 2023[2] - Net loss for Q1 2024 was $23.170 million, compared to $16.292 million in Q1 2023[16] - Non-GAAP net loss for Q1 2024 was $12.032 million, compared to $7.143 million in Q1 2023[18] - Q2 2024 non-GAAP net loss is expected to be in the range of $11.6 million to $13.5 million, with a non-GAAP loss per share of $0.29 to $0.34[3] Revenue by Segment - Datacenter revenue increased to $28.986 million in Q1 2024, up from $20.353 million in Q1 2023[16] - CATV revenue declined to $8.736 million in Q1 2024, down from $27.779 million in Q1 2023[16] Financial Position - Total assets decreased to $350.916 million as of March 31, 2024, from $389.186 million as of December 31, 2023[14] - Cash, cash equivalents, and restricted cash decreased to $17.405 million as of March 31, 2024, from $55.097 million as of December 31, 2023[14] Operating Expenses - Research and Development expenses increased to $11.712 million in Q1 2024, up from $8.536 million in Q1 2023[16] - Total operating expenses rose to $29.237 million in Q1 2024, compared to $23.411 million in Q1 2023[16] Adjusted EBITDA - Adjusted EBITDA for Q1 2024 was $(13.015) million, compared to $(4.358) million in Q1 2023[18] Non-GAAP Measures - Non-GAAP measures exclude items such as stock-based compensation, discontinued product expenses, and non-recurring expenses to better reflect operating performance[7] Market Risks - The company faces risks including changes in customer demand, supply chain disruptions, and market conditions in the internet datacenter, CATV broadband, telecom, and FTTH markets[5] Future Outlook - The company anticipates a recovery in Q2 2024 and a significantly improved second half of the year[1]

SUGAR LAND, Texas, May 09, 2024 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ:AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today announced financial results for its first quarter ended March 31, 2024. "Our first quarter revenue and gross margin came in below our expectations, largely driven by product mix, and our non-GAAP EPS was in-line with our guidance range," said Dr. Thompson Lin ...