The market wasn't in a forgiving mood when it disseminated the company's latest set of quarterly figures.Applied Optoelectronics (AAOI -5.76%), a company that manufactures fiber optics networking components, probably wishes it had called in sick on Wednesday. Its stock price fell by nearly 6% on the day, no thanks to a quarterly earnings report that displeased investors. That decline was far steeper than the almost 0.8% slide of the S&P 500 index.Revenue improvement, bottom-line erosionFor its second quarte ...

Applied Optoelectronics, Inc. (NASDAQ:AAOI) Q2 2024 Earnings Conference Call August 6, 2024 4:30 PM ET Company Participants Lindsay Savarese - IR Thompson Lin - Founder, Chairman and CEO Stefan Murry - CFO and Chief Strategy Officer Conference Call Participants Simon Leopold - Raymond James Timothy Savageaux - Northland Capital Markets Dave Kang - B. Riley FBR Operator Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics' Second Quarte ...

Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.29. This compares to loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.45%. A quarter ago, it was expected that this maker of fiber optic products used by cable TV providers would post a loss of $0.29 per share when it actually produced a loss of $0.31, delivering a surprise of -6.9 ...

Financial Performance - Revenue for Q2 2024 was $43.27 million, a 4.0% increase from $41.62 million in Q2 2023[120] - Net loss for Q2 2024 was $26.12 million, or 60.4% of revenue, compared to a net loss of $16.94 million, or 40.7% of revenue in Q2 2023[120] - Total revenue for the three months ended June 30, 2024, was $43,270 million, a 4.0% increase from $41,615 million in the same period of 2023[124] - Comprehensive loss increased by $4.7 million, or 21.2%, for the three months ended June 30, 2024 compared to the same period in 2023, primarily due to an increase in net loss of $9.2 million[144] Profitability and Margins - Gross profit margin decreased to 22.1% in Q2 2024 from 19.0% in Q2 2023, reflecting increased cost of goods sold[120] - Gross margin for the three months ended June 30, 2024, was $9,562 million, representing 22.1% of revenue, compared to 19.0% in the same period of 2023[129] Expenses - Research and development expenses rose to $13.08 million, accounting for 30.2% of revenue in Q2 2024, compared to 20.8% in Q2 2023[120] - Total operating expenses increased to $35.81 million, representing 82.8% of revenue in Q2 2024, up from 57.3% in Q2 2023[120] - Sales and marketing expenses increased by $3,641 million, or 160.5%, for the three months ended June 30, 2024, compared to the same period in 2023[133] - Research and development expenses increased by $4,438 million, or 51.4%, for the three months ended June 30, 2024, compared to the same period in 2023[132] Customer Base and Revenue Sources - The company anticipates continued revenue generation from its top ten customers, which significantly contribute to overall sales[123] - The top ten customers represented 94% of revenue for the three months ended June 30, 2024, highlighting the need for customer base diversification[127] Manufacturing and Operations - The company operates three manufacturing sites in Sugar Land, Texas, Ningbo, China, and Taipei, Taiwan, with a focus on maintaining domestic production capacity[113][115] - The company has a vertically integrated manufacturing model that enhances product development speed and quality control[113] - The company is involved in an arbitration dispute regarding the termination of a divestiture agreement, which may impact future operations[119] - The company has begun to see increased orders for 400G data center products, expecting demand to rise through the end of 2024[125] - Construction costs for the new factory in Ningbo, China, are estimated at approximately $27.5 million, with $27.4 million paid as of June 30, 2024[160] - The company anticipates placing the new factory in service in 2024 after completing the building interior work[160] Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2024 was $30.5 million, with a net loss of $49.3 million after excluding non-cash items[154] - For the six months ended June 30, 2024, net cash used in investing activities was $12.2 million, mainly for the purchase of additional plant, machinery, and equipment[156] - The company issued $80.2 million of 5.25% convertible senior notes due 2026, generating net proceeds of $76.2 million after expenses[153] - Net cash provided by financing activities for the six months ended June 30, 2024 was $3.1 million, primarily due to proceeds from the ATM program[157] - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $16.1 million, a decrease of approximately $39.0 million compared to December 31, 2023[161] - The total loan balance (excluding convertible notes) was $22.5 million, with an available borrowing capacity of $29.4 million on existing credit lines as of June 30, 2024[162] - The company raised $20.5 million under the authorized ATM Offering, with $4.5 million still available for future liquidity needs[162] Market Conditions and Future Outlook - The company is focused on high-performance segments within the internet data center, CATV, telecom, and FTTH markets, driven by increasing bandwidth demand[112] - The company intends to evaluate future investments for applicability to the tax credit provisions of the CHIPS Act[141] - Future capital requirements will depend on growth rate, R&D spending, and market acceptance of products[161] - The company is exploring additional sources of liquidity, including issuing equity or debt securities and selling assets if needed[162] - The company’s exposure to market risk has not changed materially since December 31, 2023[166] - The effective tax rate for the three months ended June 30, 2024 and 2023 was 0%, differing from the federal statutory rate of 21% due to changes in valuation allowances on deferred tax assets[140] Inflation Impact - The annual inflation rate in the US was 3.4% in 2023, while Taiwan's rate decreased to 2.7%[164] - The company does not believe inflation had a material impact on its business or financial condition during the three months ended June 30, 2024[164]

Exhibit 99.1 Applied Optoelectronics Reports Second Quarter 2024 Results Sugar Land, Texas, August 6, 2024 – 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 second quarter ended June 30, 2024. "Our revenue for the second quarter was in line with our expectations. While our non-GAAP gross margin came in below our expectat ...

SUGAR LAND, Texas, Aug. 06, 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 second quarter ended June 30, 2024. “Our revenue for the second quarter was in line with our expectations. While our non-GAAP gross margin came in below our expectations, primarily due to product mix, our non-GAAP loss pe ...

SUGAR LAND, Texas, July 30, 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 the Compensation Committee of its Board of Directors granted inducement awards for 16,145 shares of common stock to 3 new employees, with a grant date of July 29, 2024, pursuant to the Applied Optoelectronics, Inc. 2023 Equity Inducement Plan ...

SUGAR LAND, Texas and TAIPEI, Taiwan, July 25, 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 confirmed that its facilities suffered no known damage from Typhoon Gaemi. In the early morning hours of Thursday, Jul. 25, 2024, local time in Taiwan, Typhoon Gaemi came ashore in northeastern Taiwan. AOI operates an R&D, manufacturing, a ...

Fundamentally, the case for innovative tech stocks to buy is quite straightforward: rational societies seek to advance in knowledge and productivity. Therefore, an incentive exists for government agencies to bolster their nations’ technological ecosystems. In doing so, collective productivity may rise, leading to an increase in overall wealth.Still, that doesn’t answer the main question: which of the individual innovative tech stocks should investors consider? For that, I’m going to turn to a compelling tec ...

SUGAR LAND, Texas, July 16, 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 will release financial results for its second quarter ended June 30, 2024 on Tuesday, August 6, 2024. Applied Optoelectronics will host a conference call and webcast for analysts and investors to discuss its second quarter 2024 financial r ...