Applied Optoelectronics reports Q1 EPS (2c), consensus (4c)

Reports Q1 revenue $99.9M, consensus $99.7M. “We’re pleased to deliver results that were in line with or better than our expectations,” said Dr. Thompson Lin, CEO. “We continue to see strong demand in the CATV market and achieved the highest quarterly CATV revenue in AOI’s history during the first quarter. In our datacenter business, we continued to engage in meaningful dialogue with our customers and secured three new design wins with an existing hyperscale customer. We have seen and expect to continue to see a growing demand for our 400G and 800G products and we are actively working to build out our capacity to address this demand. Lastly, we began several new qualification efforts while supporting existing qualification efforts on 800G products with multiple large hyperscale customers and based on forecasts we are seeing, we have increased confidence in a second half of 2025 ramp in 800G sales.” “We started the year with considerable momentum in the first quarter,” said Dr. Stefan Murry, AOI’s Chief Financial Officer and Chief Strategy Officer. “We more than doubled our revenue and expanded our gross margins considerably compared to Q1 of last year. Given the uncertainty in the macro environment, we believe our proprietary, largely in-house developed, automated manufacturing capabilities give us a unique advantage as we plan to scale our manufacturing in the US, with the expectation of exiting this year with a production capacity of over 100,000 units of 800G transceivers per month, with 40% of this production being done in the US. In addition to this anticipated US expansion, we have added and plan to continue to add capacity in our Taiwan manufacturing site to further diversify our manufacturing capabilities and to add additional resilience to our business model. Looking ahead, we believe we are well positioned to benefit from the long-term growth drivers for both our CATV and datacenter businesses.”