Core Viewpoint - Applied Optoelectronics, Inc. (AOI) plans to exchange approximately $80 million principal amount of its 5.25% Convertible Senior Notes due 2026 for a combination of new Convertible Senior Notes due 2030, common stock, and cash for accrued interest and fractional shares [1][5]. Group 1: Exchange Details - The final terms for the exchange of the 2026 Notes for the 2030 Notes and common stock will be determined at the time of pricing [2]. - The 2030 Notes will be senior, unsecured obligations, ranking equally with existing and future senior unsecured indebtedness, and senior to subordinated indebtedness [2]. - Holders of the 2030 Notes will have the option to convert under specified circumstances, with conversions settled in cash, shares, or a combination [3]. Group 2: Additional Transactions - Following the exchange, AOI may engage in further exchanges, repurchases, or conversions of the 2026 Notes, which could impact the trading price of its common stock and the 2030 Notes [4]. - There is no assurance that the exchanges will be completed, and the transactions are exempt from registration under the Securities Act of 1933 [5]. Group 3: Registered Direct Offering - Concurrently, AOI intends to commence a registered direct offering of its common stock, with net proceeds aimed at general corporate purposes, including potential acquisitions [6][7]. - Raymond James & Associates, Inc. is acting as the sole placement agent for the registered direct offering, which is made under an automatic shelf registration statement [8]. Group 4: Closing Timeline - The exchanges and the registered direct offering are expected to close concurrently on or about December 23, 2024, subject to customary closing conditions [9]. Group 5: Company Overview - Applied Optoelectronics Inc. is a leading developer and manufacturer of advanced optical products, serving the CATV broadband, internet datacenter, telecom, and FTTH markets [13].

Core Viewpoint - Applied Optoelectronics, Inc. (AOI) has filed a patent infringement complaint against Accelight Technologies, Inc. (ATI) in the U.S. District Court for the Northern District of California, alleging infringement of its optical transceiver patents [1][2][3]. Group 1: Legal Action - The complaint was filed on December 13, 2024, and includes allegations that specific ATI products infringe AOI's patents [2]. - AOI is seeking monetary damages and a permanent injunction against ATI [4]. Group 2: Company Background - AOI is a leading provider of fiber-optic access network products, serving markets such as internet datacenters, cable broadband, telecom, and fiber-to-the-home (FTTH) [1][5]. - The company has invested significantly in research and development to protect its intellectual property rights [3].

Core Insights - Applied Optoelectronics Inc. (AOI) has appointed Kevin Jones as vice president of sales for its broadband access division, Quantum Bandwidth™ [1][2] - Jones will oversee global sales and is expected to enhance AOI's strategy in selling Quantum Bandwidth products to Cable Multiple System Operators (MSO) [2] - Jones brings extensive experience from previous roles at Ciena, CommScope, Casa Systems, and ScientificAtlanta, where he managed significant cable network transitions [3] Company Overview - AOI is a leading developer and manufacturer of advanced optical products, serving internet datacenter, CATV broadband, telecom, and fiber-to-the-home (FTTH) markets [6] - The company provides optical networking lasers, components, and equipment to tier-1 customers globally, with facilities in Sugar Land, TX, Taipei, Taiwan, and Ningbo, China [6] Product Information - Quantum Bandwidth includes broadband access products like QuantumLink™ and Quantum18, designed to meet increasing bandwidth demands and ensure reliable performance for cable service providers [5]

Core Points - Applied Optoelectronics, Inc. (AOI) will present at the Raymond James 2024 TMT & Consumer Conference on December 10, 2024, at 8:40 a.m. Eastern time [1] - The presentation will be led by Stefan Murry, the Chief Financial Officer and Chief Strategy Officer of AOI [1] Company Overview - Applied Optoelectronics, Inc. is a leading developer and manufacturer of advanced optical products, including components, modules, and equipment [2] - AOI's products serve as the building blocks for broadband fiber access networks globally, utilized in internet datacenters, CATV broadband, telecom, and FTTH markets [2] - The company supplies optical networking lasers, components, and equipment to tier-1 customers across these markets [2] - AOI has its corporate headquarters, wafer fab, and advanced engineering and production facilities located in Sugar Land, Texas, along with engineering and manufacturing facilities in Taipei, Taiwan, and Ningbo, China [2]

Core Viewpoint - Applied Optoelectronics, Inc. has filed a patent infringement complaint against Eoptolink Technology USA Inc. in the U.S. District Court for the Northern District of California, asserting that Eoptolink's products infringe on AOI's optical transceiver patents [1][2][3]. Company Overview - Applied Optoelectronics, Inc. is a leading provider of fiber-optic access network products, serving the internet datacenter, cable broadband, telecom, and fiber-to-the-home (FTTH) markets [1][4]. - The company has made significant investments in technology development and building its intellectual property (IP) portfolio [4]. Legal Action - The complaint, filed on November 19, 2024, specifically names several Eoptolink products, including the 400G QSFP-DD LR4 and 100G QSFP28 LR4, as infringing AOI's patents [2]. - AOI is seeking monetary damages and a permanent injunction against Eoptolink [5]. Leadership Statement - Dr. Thompson Lin, the Founder, President, and CEO of AOI, emphasized the company's commitment to protecting its IP rights through legal action against alleged infringers [3].

Group 1 - The article highlights the challenging situation faced by Applied Optoelectronics, Inc. (AOI) just before summer last year, indicating a period of struggle for the company [1] - The mission of Grassroots Trading is to provide objective and unbiased research focused on small- to mid-cap companies, while also identifying opportunities in larger companies [1]

Why is Applied Optoelectronics soaring despite a modest earnings report? Uncover the AI-fueled strategy boosting its stock to multiyear highs.Shares of Applied Optoelectronics (AAOI 49.08%) skyrocketed on Friday. A mixed earnings report sent the stock soaring, reaching a 51.4% gain as of 2:15 p.m. ET. The maker of fiber-optic networking equipment and components hasn't seen stock prices this high since the fall of 2018.A mixed report, modest guidance...The actual report wasn't terribly impressive. Third-quar ...

Financial Data and Key Metrics - Q3 2024 revenue was $65.2 million, at the high end of the guidance range of $60 million to $66 million [13] - Non-GAAP gross margin was 25%, within the guidance range of 24% to 26% [14] - Non-GAAP loss per share was $0.21, above the guidance range of $0.14 to $0.20 due to accelerated R&D spending [14] - Total cash, cash equivalents, short-term investments, and restricted cash stood at $41.4 million at the end of Q3 [41] - Total debt, excluding convertible debt, was $39.4 million, up from $27.5 million in Q2 [42] Business Line Performance - Data center revenue was $40.9 million, down 16% YoY but up 90% sequentially, driven by 400G product growth [15] - CATV revenue was $20.9 million, up 104% YoY and 260% sequentially, driven by 1.8 GHz amplifier shipments [16] - Telecom revenue was $2.8 million, down 9% YoY but up 18% sequentially [33] - 67% of data center revenue came from 100G products, 27% from 200G and 400G, and 4% from 40G [23] Market Performance - Data center business saw strong double-digit sequential growth, driven by new 400G product wins [13] - CATV business more than tripled sequentially due to customer transitions to new architectures [13] - Initial orders for 400G products were received from a new hyperscale customer, with shipments already underway [15] Strategic Direction and Industry Competition - The company is focusing on 400G and 800G products for data centers, with significant interest in 1.6 terabit transceivers [17] - CATV customers are transitioning to DOCSIS 4.0, with initial orders already being delivered [30] - The company is investing in US-based production and automated manufacturing to meet future demand [48] Management Commentary on Operating Environment and Future Outlook - Management expects Q4 revenue to be between $94 million and $104 million, with non-GAAP gross margin in the range of 27.5% to 29.5% [46] - Long-term demand drivers for data center and CATV businesses remain strong, with generative AI adoption expected to drive further growth [47] - The company is optimistic about the ramp-up of 800G products in 2025 and expects CATV margins to improve [55][56] Other Important Information - The company raised $59.9 million net of commissions and fees under its at-the-market offering program [45] - Capital investments in Q3 totaled $11.4 million, primarily for production and R&D equipment [43] - The company expects to make sizable CapEx investments over the next several quarters to prepare for increased production of 400G, 800G, and 1.6 terabit products [43] Q&A Session Summary Question: What is driving the increased demand for 400G products? - The demand is driven by data center customers' need for interconnections, particularly for AI networks, and is expected to continue growing [50] Question: What types of transceivers will the company focus on for 800G? - The company will primarily focus on edge-emitting technology (EMLs) and silicon photonics-based solutions, with some interest in VCSEL-based solutions [52] Question: How many of the top hyperscalers are currently customers? - The company has three out of the top five hyperscalers as customers, with ongoing discussions with a fourth [53] Question: What is the outlook for margins as the company transitions to 800G and 1.6 terabit products? - CATV margins are currently higher than data center margins and are expected to improve further, while the transition to 800G and 1.6 terabit products should also boost data center margins [55][56] Question: What is driving the sharp revenue uptick in Q4? - The growth is driven by continued strength in 400G products, some contribution from 800G, and improving CATV margins [59] Question: What is the status of the new hyperscale customer? - The new hyperscale customer is a re-engaging customer and is expected to grow in Q4, potentially becoming a 10% customer in the next few quarters [61] Question: What is the outlook for Microsoft-related revenue? - Microsoft-related revenue was below $5 million in Q3 and is ramping slower than expected, but the company remains committed to reaching a $25 million per quarter run rate [65] Question: What is driving the strength in 100G products? - Hyperscale customers are growing both their existing infrastructure and new AI-focused infrastructure, leading to continued demand for 100G products [67]

Applied Optoelectronics (AAOI) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.17. This compares to loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -23.53%. 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 $0.28, delivering a surprise of 3. ...

Table of Contents Title of each class Trading Symbol(s) Trading Name of each exchange on which registered UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: ...