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 ...

As the saying goes, the trend is your friend. High-momentum stocks can be profitable, often with higher short- and medium-term win rates. These momentum stocks will follow the broader market in the longer term, but if you are looking for juicy gains soon, these stocks can be very good bets.Momentum stocks already have a well-established trend, and their bullish sentiment can drive these stocks higher and higher. And if the broader market is bullish, expect these stocks to supercharge your entire portfolio i ...

Company Overview - Applied Optoelectronics, Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules, and equipment [3] - AOI's products serve as the building blocks for broadband fiber access networks globally, utilized in internet datacenters, CATV broadband, telecom, and FTTH markets [3] - The company supplies optical networking lasers, components, and equipment to tier-1 customers across all four markets [3] Recent Developments - AOI announced its participation in an upcoming investor conference, indicating ongoing engagement with the investment community [1] - A recording of the presentation will be accessible on the investor relations section of the company's website, enhancing transparency and communication with investors [2] Facilities and Operations - AOI's corporate headquarters, wafer fab, and advanced engineering and production facilities are located in Sugar Land, Texas [3] - The company also has engineering and manufacturing facilities in Taipei, Taiwan, and Ningbo, China, indicating a strong international presence [3]

SUGAR LAND, Texas, April 29, 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 14,190 shares of common stock to 5 new employees, with a grant date of April 29, 2024, pursuant to the Applied Optoelectronics, Inc. 2023 Equity Inducement Pl ...

eAlisaMicro cap stocks are those typically defined at around $300 million in market cap or less. Companies of this size are often duds, but, others are super high growth with the potential to fulfill Peter Lynch's thoughts on small companies... Big companies have small moves, small companies have big moves... Peter Lynch from One Up On Wall Street Microcap Warning Microcap growth stocks are highly volatile. Short attacks are frequent. Timelines are often missed. Goals are often missed. You must be a ...

SUGAR LAND, Texas, April 18, 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 first quarter ended March 31, 2024 on Thursday, May 9, 2024. Applied Optoelectronics will host a conference call and webcast for analysts and investors to discuss its first quarter 2024 financial resu ...

It may sound counterintuitive but if you want big gains, you have to think small, as in small-cap stocks. Here, the idea is to trade predictability for maximum profit potential.To be sure, the aforementioned elements generally feature a counterbalancing framework. For example, the companies that feature the greatest magnitude of predictability are the established, large-capitalization businesses. However, you’re not going to get much profit potential because everybody expects them to perform consistently.On ...

When you think about tech disruptor stocks, it’s hard not to mention Uber Technologies (NYSE:UBER). By making use of the “dead” space found in millions of cars in the U.S. – and increasingly across the world – Uber not only provided a convenient service but also forged an entirely new sharing economy.That’s really the spirit behind tech disruptor stocks. We’re looking for enterprises that can potentially catapult their offerings into high ground, weeding out competitors and less efficient and effective busi ...