Applied Optoelectronics reports Q2 EPS (16c), consensus (7c)

Reports Q2 revenue $103M, consensus $105.8M. “We’re pleased to deliver revenue and gross margin in line with our expectations,” said Dr. Thompson Lin, AOI’s Founder, President and Chief Executive Officer. “While EPS came in below our expectations primarily due to elevated operating expenses, the inherent strength of our business fundamentals was apparent with strong year-over-year top line growth and gross margin expansion. The increase in our operating expenses is a direct result of strategic investments in R&D and SG&A expenses driven by increased business activity, including new customer qualification efforts for 800G and 1.6Tb transceivers, which are already translating into higher levels of customer engagement and near-term future revenue opportunities. During the quarter, we saw steady growth in our datacenter business, and we continued to see strong demand in our CATV business. We made positive steps forward in our 800G qualification efforts following the approval of our Taiwan factory for 800G product production from one of our major hyperscale customers. We’re approaching what we believe are the final stages for securing 800G product qualification and continue to believe that we will produce meaningful shipments of 800G products sometime in the second half of 2025.”