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Applied Optoelectronics(AAOI) - 2024 Q3 - Quarterly Results
AAOIApplied Optoelectronics(AAOI)2024-11-07 21:05

Revenue and Growth - Q3 2024 GAAP revenue was 65.2million,upfrom65.2 million, up from 43.3 million in Q2 2024 and 62.5millioninQ32023[4]−TotalrevenueforQ32024was62.5 million in Q3 2023[4] - Total revenue for Q3 2024 was 65.151 million, compared to 62.547millioninQ32023,representinga4.262.547 million in Q3 2023, representing a 4.2% increase[17] - GAAP revenue for Q3 2024 was 65.151 million, compared to 62.547millioninQ32023[19]−Q42024revenueguidanceisbetween62.547 million in Q3 2023[19] - Q4 2024 revenue guidance is between 94 million and 104million[7]GrossMarginandProfitability−Q32024GAAPgrossmarginwas24.4104 million[7] Gross Margin and Profitability - Q3 2024 GAAP gross margin was 24.4%, compared to 22.1% in Q2 2024 and 32.3% in Q3 2023[4] - Non-GAAP total gross profit for Q3 2024 was 16.264 million, compared to 20.327millioninQ32023[19]−Q42024non−GAAPgrossmarginisexpectedtobebetween27.520.327 million in Q3 2023[19] - Q4 2024 non-GAAP gross margin is expected to be between 27.5% and 29.5%[7] Net Loss and Earnings - Q3 2024 GAAP net loss was 17.8 million, or 0.42perbasicshare,comparedtoanetlossof0.42 per basic share, compared to a net loss of 26.1 million in Q2 2024 and 9.0millioninQ32023[5]−Q32024non−GAAPnetlosswas9.0 million in Q3 2023[5] - Q3 2024 non-GAAP net loss was 8.8 million, or 0.21perbasicshare,comparedtoanon−GAAPnetlossof0.21 per basic share, compared to a non-GAAP net loss of 10.9 million in Q2 2024 and 1.7millioninQ32023[5]−NetlossforQ32024was1.7 million in Q3 2023[5] - Net loss for Q3 2024 was 17.757 million, compared to a net loss of 8.953millioninQ32023[17]−GAAPnetlossforQ32024was8.953 million in Q3 2023[17] - GAAP net loss for Q3 2024 was (17.757) million, compared to (8.953)millioninQ32023[19]−Non−GAAPnetlossforQ32024was(8.953) million in Q3 2023[19] - Non-GAAP net loss for Q3 2024 was (8.782) million, compared to (1.691)millioninQ32023[19]−Q42024non−GAAPnetincomeisprojectedtorangefromalossof(1.691) million in Q3 2023[19] - Q4 2024 non-GAAP net income is projected to range from a loss of 1.9 million to income of 1.7million[7]−GAAPdilutednetlosspershareforQ32024was1.7 million[7] - GAAP diluted net loss per share for Q3 2024 was (0.42), compared to (0.27)inQ32023[19]−Non−GAAPdilutednetlosspershareforQ32024was(0.27) in Q3 2023[19] - Non-GAAP diluted net loss per share for Q3 2024 was (0.21), compared to (0.05)inQ32023[19]BusinessSegmentPerformance−Datacenterbusinesssawdouble−digitsequentialgrowthdrivenbynewwinsfor400Gproducts[3]−CATVbusinessmorethantripledfromQ22024duetocustomertransitiontonewarchitectures[3]−DatacenterrevenueforQ32024was(0.05) in Q3 2023[19] Business Segment Performance - Data center business saw double-digit sequential growth driven by new wins for 400G products[3] - CATV business more than tripled from Q2 2024 due to customer transition to new architectures[3] - Datacenter revenue for Q3 2024 was 40.945 million, a decrease of 16.1% compared to 48.807millioninQ32023[17]−CATVrevenueforQ32024was48.807 million in Q3 2023[17] - CATV revenue for Q3 2024 was 20.947 million, a significant increase of 104.1% compared to 10.268 million in Q3 2023[17] Research and Development - Accelerated R&D spending in Q3 2024 was driven by new customer requests, particularly for 1.6 Terabit transceivers in the data center business[3] - Research and development expenses for Q3 2024 were 13.428 million, a 42.0% increase compared to 9.457millioninQ32023[17]OperatingExpenses−TotaloperatingexpensesforQ32024were9.457 million in Q3 2023[17] Operating Expenses - Total operating expenses for Q3 2024 were 32.464 million, a 20.8% increase compared to 26.860millioninQ32023[17]−Share−basedcompensationexpenseforQ32024was26.860 million in Q3 2023[17] - Share-based compensation expense for Q3 2024 was 2.943 million, compared to 3.235millioninQ32023[19]−ExpensesassociatedwithdiscontinuedproductsforQ32024were3.235 million in Q3 2023[19] - Expenses associated with discontinued products for Q3 2024 were 202 thousand, compared to 29thousandinQ32023[19]FinancialPositionandAssets−TotalassetsasofSeptember30,2024,were29 thousand in Q3 2023[19] Financial Position and Assets - Total assets as of September 30, 2024, were 409.972 million, up from 389.186millionasofDecember31,2023,representinga5.3389.186 million as of December 31, 2023, representing a 5.3% increase[15] - Accounts receivable increased by 56.3% to 75.154 million as of September 30, 2024, compared to 48.071millionasofDecember31,2023[15]−Cash,cashequivalents,andrestrictedcashdecreasedby24.948.071 million as of December 31, 2023[15] - Cash, cash equivalents, and restricted cash decreased by 24.9% to 41.367 million as of September 30, 2024, from 55.097millionasofDecember31,2023[15]−Totalcurrentliabilitiesincreasedby25.455.097 million as of December 31, 2023[15] - Total current liabilities increased by 25.4% to 117.102 million as of September 30, 2024, compared to 93.358millionasofDecember31,2023[15]AdjustedEBITDAandOtherMetrics−AdjustedEBITDAforQ32024was93.358 million as of December 31, 2023[15] Adjusted EBITDA and Other Metrics - Adjusted EBITDA for Q3 2024 was (7.685) million, compared to $2.980 million in Q3 2023[19] - Shares used to compute diluted loss per share for Q3 2024 were 42,312, compared to 32,774 in Q3 2023[19]