Workflow
Applied Optoelectronics(AAOI) - 2024 Q4 - Earnings Call Transcript
AAOIApplied Optoelectronics(AAOI)2025-02-27 03:00
Filings

Financial Data and Key Metrics Changes - The company reported Q4 revenue of 100million,whichwasinlinewithguidanceof100 million, which was in line with guidance of 94 million to 104million[14][19]−Non−GAAPgrossmarginwas28.9104 million [14][19] - Non-GAAP gross margin was 28.9%, consistent with guidance of 27.5% to 29.5% [14][19] - Non-GAAP loss per share was 0.02, within the guidance range of a loss of 0.04toearningsof0.04 to earnings of 0.04 per share [14][19] - Total revenue increased by 66% year-over-year and 54% sequentially [24] Business Line Data and Key Metrics Changes - Datacenter products generated 44.2millioninrevenue,flatyear−over−yearbutup844.2 million in revenue, flat year-over-year but up 8% sequentially [15][24] - Revenue from 400G products increased by 40% year-over-year and 70% sequentially, driven by increased adoption [15] - CATV segment revenue was 52.2 million, up more than 4x year-over-year and more than doubled sequentially, largely due to 1.8 GHz amplifiers [16][26] - Telecom products revenue was 3.5million,up263.5 million, up 26% year-over-year and 25% sequentially [28] Market Data and Key Metrics Changes - In Q4, 44% of revenue came from datacenter products, 52% from CATV products, and 4% from FTTH, telecom, and other [24] - The top 10 customers represented 97% of revenue, up from 95% in Q4 of the previous year [28] Company Strategy and Development Direction - The company is focused on expanding production capabilities, retrofitting facilities in Texas and leasing additional space in Taiwan [22][23] - Plans to invest between 120 million and 150millionincapitalexpendituresin2025tosupportincreasedproductionof400G,800G,and1.6terabitproducts[36]−Thecompanyaimstoreturnnon−GAAPgrossmargintoaround40150 million in capital expenditures in 2025 to support increased production of 400G, 800G, and 1.6 terabit products [36] - The company aims to return non-GAAP gross margin to around 40% in the long term [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for datacenter and CATV businesses, anticipating a sustained growth period [37][110] - The company expects Q1 revenue to be between 94 million and 104million,withnon−GAAPgrossmarginrangingfrom29104 million, with non-GAAP gross margin ranging from 29% to 30.5% [38] Other Important Information - The company ended Q4 with 79.1 million in total cash and equivalents, up from 41.4millionattheendofQ3[34]−Totaldebt,excludingconvertibledebt,was41.4 million at the end of Q3 [34] - Total debt, excluding convertible debt, was 46 million, compared to 39.4millionattheendofthepreviousquarter[34]−Thecompanyraised39.4 million at the end of the previous quarter [34] - The company raised 53.9 million net from its at-the-market program during the quarter [35] Q&A Session Summary Question: Capacity investments focus - Management indicated that capital expenditures will be primarily for datacenter production, with some for cable TV [40][43] Question: Demand forecasts for 800G products - Demand forecasts from hyperscale customers align with production capacity plans for 800G and 1.6 terabit products [47][60] Question: Quantum Bandwidth order details - The Quantum Bandwidth order is related to the 1.8 GHz amplifiers, part of the same product suite [51][52] Question: Datacenter opportunity and customer expectations - Management confirmed that datacenter growth is in line with expectations, with 400G demand increasing significantly [56][78] Question: Lead times for 800G products - Lead times for 800G products are expected to be around 8 to 10 weeks [91] Question: Top customer details - The top customer is a stocking distributor for cable TV products, supplying major MSOs [82][90]