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Applied Optoelectronics Reports First Quarter 2025 Results
AAOIApplied Optoelectronics(AAOI) Globenewswire·2025-05-08 20:10

Core Insights - Applied Optoelectronics, Inc. (AOI) reported strong financial results for Q1 2025, with significant revenue growth and improved gross margins compared to the previous year [2][5][20] - The company achieved its highest quarterly revenue in the CATV market and secured new design wins in the datacenter segment, indicating robust demand for its products [2][5] - AOI is expanding its manufacturing capacity, particularly for 800G transceivers, with plans to produce over 100,000 units per month by the end of 2025 [2][5] Financial Performance - Q1 2025 revenue reached $99.9 million, a substantial increase from $40.7 million in Q1 2024 [5][20] - Gross margin improved to 30.6% in Q1 2025, up from 18.7% in Q1 2024 [5][20] - The net loss for Q1 2025 was $9.2 million, or $0.18 per share, a significant reduction from a net loss of $23.2 million, or $0.60 per share in Q1 2024 [5][20] Business Outlook - For Q2 2025, AOI expects revenue between $100 million and $110 million, with a non-GAAP gross margin projected between 29.5% and 31.0% [6] - The company anticipates a non-GAAP net loss ranging from $4.8 million to $1.7 million for Q2 2025 [6] - AOI's management expresses confidence in the long-term growth drivers for both its CATV and datacenter businesses, supported by ongoing demand for 400G and 800G products [2][5] Manufacturing and Capacity Expansion - AOI plans to scale its manufacturing capabilities in the US, with 40% of the anticipated production of 800G transceivers to be conducted domestically [2][5] - The company is also enhancing its manufacturing capacity in Taiwan to diversify operations and increase resilience [2][5] Market Position - AOI is positioned as a leading provider of fiber-optic access network products, serving key markets including internet datacenters, cable broadband, telecom, and fiber-to-the-home [1][14] - The company supplies optical networking components to tier-1 customers, indicating a strong market presence and customer base [14]