Applied Optoelectronics Reports Strong Q1 2025 Performance

Applied Optoelectronics Inc ( (AAOI) ) has released its Q1 earnings. Here is a breakdown of the information Applied Optoelectronics Inc presented to its investors.

Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products used in broadband fiber access networks, serving markets such as internet datacenter, CATV broadband, telecom, and fiber-to-the-home (FTTH). The company operates facilities in the United States, Taiwan, and China.

In the first quarter of 2025, Applied Optoelectronics reported financial results that met or exceeded expectations. The company experienced strong demand in the CATV market, achieving the highest quarterly CATV revenue in its history. Additionally, AOI secured three new design wins with an existing hyperscale customer and saw growing demand for its 400G and 800G products.

Key financial highlights for the quarter include a GAAP revenue of $99.9 million, a significant increase from $40.7 million in the same quarter of 2024. The GAAP gross margin improved to 30.6%, up from 18.7% in the previous year. The company reported a GAAP net loss of $9.2 million, a notable improvement from the $23.2 million loss in Q1 2024. Non-GAAP net loss was reduced to $0.9 million from $12.0 million in the prior year.

Looking forward, AOI expects second-quarter 2025 revenue to be between $100 million and $110 million, with a non-GAAP gross margin ranging from 29.5% to 31.0%. The company plans to expand its manufacturing capacity in both the US and Taiwan to meet the growing demand for its products, positioning itself to benefit from long-term growth in the CATV and datacenter markets.