What were the key takeaways from Applied Optoelectronics's earnings call?

What were the key takeaways from Applied Optoelectronics’s earnings call?

What does Applied Optoelectronics do and what are its main business segments?

What guidance did Applied Optoelectronics's management provide for the next earnings period?

What is Applied Optoelectronics's latest dividend and current dividend yield?

Did Applied Optoelectronics beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Applied Optoelectronics year over year?

What is the market's earnings forecast for Applied Optoelectronics next quarter?

- **Record Revenue**: Q3 $118.6M (82% YoY), driven by CATV ($70.6M, +26% QoQ) and delayed 400G shipments ($6.6M to Q4).
- **800G Momentum**: Expect 10,000-20,000 units shipped in Q4, ramping to 150,000/month by mid-2026; 1.6T production begins mid-2026.
- **CATV Growth**: 2026 target of $300M+ via new MSO wins and QuantumLink software adoption.
- **U.S. Expansion**: 200,000/month transceiver capacity in Texas by mid-2026; in-house laser manufacturing (3" wafer, <10% China dependency).
- **Customer Commitments**: Major hyperscale customers provide $200M+ in potential orders; government incentives for U.S. production under discussion.

**【CEO Summary Section】**
- Recorded highest quarterly revenue of $118.6 million, driven by CATV segment growth (up 26% sequentially) and 400G transceiver shipments delayed to Q4. 
- CATV revenue reached $70.6 million, triple year-over-year, due to 1.8GHz amplifier demand from Charter and 6+ new MSO customers.
- Datacenter revenue ($43.9M) down 2% sequentially but 7% YoY growth; 100G products up 32% YoY, 400G down 65% YoY due to timing delays.
- Gross margin 31% (in line with guidance); expect gradual improvement as datacenter mix stabilizes.
- 800G qualifications nearing completion; expect meaningful shipments in Q4 and 1.6T production ramping mid-2026.

**【CFO Financial Commentary】**
- Q3 non-GAAP net loss $0.09 (vs. guidance of -$0.10 to -$0.13); gross margin 31% (vs. 29.5-31% guidance).
- Sequential revenue growth 15% ($103.1M to $118.6M); YoY growth 82%.
- Direct tariffs impacted Q3 income by $1.1M; <10% of 800G/1.6T components sourced from China.
- Q4 outlook: $125M-$140M revenue (10-20% sequential growth), gross margin 29-31%, non-GAAP loss $0.13 to -$0.04.
- 2025 CapEx $124.9M (vs. $120-150M guidance); 2026 expansion plans include 35,000/month 800G/1.6T capacity in Texas.

**【Q&A Highlights】**
- **CATV Outlook**: Q4 CATV revenue expected to moderate to $50-55M, but 2026 target of $300M+ achievable via new products (QuantumLink software, node solutions).
- **800G Progress**: Customer qualifications complete; expect 10,000-20,000 units shipped in Q4, ramping to 150,000/month by mid-2026.
- **Laser Supply Chain**: In-house 3" laser wafer production (4" in 2026); <10% of 800G/1.6T components from China.
- **Texas Expansion**: New 200,000/month transceiver facility under construction; 35,000/month 800G/1.6T capacity online late 2025.
- **Customer Commitments**: Major hyperscale customers provide $200M+ in potential orders; government incentives for U.S. production under discussion.

Applied Optoelectronics, Inc. (AAOI) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue of $103M (+112% YoY), with CATV up 8x and datacenter +30% YoY.
- **800G Momentum**: First 800G shipments expected late Q3/Q4 2025; 1.6Tb production ramping Q2 2026.
- **CATV Expansion**: $56M CATV revenue (+8x YoY), with 1.8 GHz amplifier certifications from 7 MSOs.
- **Gross Margin Path**: 30.4% Q2 margin; targeting 40%+ via 3"/4" wafer transitions and high-margin 800G/1.6Tb products.
- **Customer Engagement**: 3 Tier-1 customers qualified for 800G; 10+ MSOs engaged on CATV products.

**【CEO Summary Section】**
- Q2 revenue of $103 million, up 112% year-over-year, driven by 8x growth in CATV segment and 30% growth in datacenter products.
- 400G transceivers saw first volume shipments to a major hyperscale customer, with sequential demand increasing 40%.
- 800G qualification nearing completion; expects shipments in late Q3/Q4 2025, with 1.6Tb production ramping Q2 2026.
- CATV business achieved $56 million revenue, up 8x YoY, with 1.8 GHz amplifier certifications from Charter and 6 other MSOs.
- Gross margin improved to 30.4% (vs. 22.5% Q2 2024), targeting 40%+ long-term through vertical integration and scale.

**【CFO Financial Commentary】**
- Non-GAAP loss of $0.16 vs. guidance of -$0.03 to -$0.09 due to $5.1M higher-than-expected R&D/SG&A expenses.
- R&D up $2.6M/QoQ for 800G/1.6Tb qualification; SG&A up $2.5M/QoQ for OFC trade show and tariff mitigation.
- Q3 outlook: $115-127M revenue (12-23% QoQ growth), 29.5-31% gross margin, -$0.10 to -$0.03 EPS.
- CapEx of $38.8M in Q2 for 800G/1.6Tb production; full-year $120-150M CapEx target.
- Cash balance of $87.2M; $98M raised via ATM for production expansion.

**【Q&A Highlights】**
- CATV node product launch expected Q4 2025; Charter demand for 1.8 GHz amps could reach $300-350M in 2026.
- 3 Tier-1 customers qualified for 800G; 1.6Tb production ramping Q2 2026 with 200,000+ units/month capacity.
- Gross margin expansion driven by:
  - 3"/4" wafer transitions reducing laser costs 50-60%
  - 800G/1.6Tb ASPs 2x+ higher than 400G
  - Software revenue (QuantumLink) margins >50%
- 800G factory in Taiwan qualified by major customer; U.S. production capacity to reach 40,000/month by end-2025.

Applied Optoelectronics, Inc. (AAOI) Q2 2025 Earnings Call Transcript

- **Record CATV Growth**: Q1 CATV revenue up 6x YoY to $64M, driven by 1.8 GHz amplifier shipments.
- **800G Production Ramp**: Targeting 100,000/month by end-2025, with Amazon potentially accounting for >40% of shipments.
- **Amazon Partnership**: On track for $400M+ annual revenue with U.S.-based production for AI/DOCSIS 4.0.
- **Gross Margin Expansion**: Non-GAAP gross margin 30.7%, up 1.8pts YoY, with 40%+ long-term target.
- **Tariff Mitigation**: <10% China-sourced components in 800G designs, full U.S. production automation for 800G by Q3 2025.


**【CEO Opening Remarks】**
- Q1 2025 revenue of $99.9 million, in line with guidance, driven by record CATV revenue ($64 million, +6x YoY) and 11% YoY growth in data center products.
- Highlighted 3 new design wins with hyperscale customers and 800G production ramping in Texas (targeting 40,000/month by end-2025).
- Amazon partnership: on track to meet $400M+ annual revenue threshold for warrant exercise, with U.S.-based production prioritized for AI/DOCSIS 4.0 compatibility.

**【CFO Financial Breakdown】**
- Non-GAAP gross margin 30.7% (vs. 28.9% Q4 2024), driven by CATV mix and cost efficiencies.
- Operating expenses $35.5M (36% of revenue), up 43% YoY due to R&D and G&A expansion.
- Q2 2025 outlook: $100-110M revenue, 29.5%-31% gross margin, and sequential data center recovery.
- CapEx $120-150M for 2025, focused on 800G/1.6T production capacity expansion.

**【Q&A Key Takeaways】**
- **800G Ramp**: 800G revenue expected in Q3 2025, targeting 100,000/month by end-2025. Amazon could account for >40% of 800G shipments.
- **Manufacturing Strategy**: U.S. production costs 10-15% premium but prioritized for tariff mitigation and PAA compliance. Texas facility to handle 80% of 800G capacity.
- **CATV Inventory**: 64% of Q1 revenue from CATV, with sequential pullback in Q2 due to Motorola-style amplifier retooling. No material tariff impact to date.
- **Competitive Position**: 90%+ AI transceiver market share with Amazon; <10% China-sourced components in 800G designs, with path to near-zero China content.


Applied Optoelectronics, Inc. (AAOI) Q1 2025 Earnings Call Transcript

- **Revenue Growth Surges**: Q4 revenue up 66% YoY to $100M, driven by 4x growth in CATV and steady datacenter demand.
- **CATV Dominance**: CATV revenue ($52.2M) accounts for 52% of total, fueled by 1.8 GHz amplifier orders from a major MSO.
- **800G Expansion**: Targeting 120,000-140,000 800G units/month by mid-2025, with $120M-$150M CapEx for Texas/Taiwan facilities.
- **Gross Margin Recovery**: Non-GAAP gross margin improved to 28.9%, with long-term goal of 40% via CATV efficiency gains.
- **Hyperscale Momentum**: Multiple hyperscale customers provide 800G demand forecasts, supporting H2 2025 ramp.

**【CEO Summary Section】**
- Q4 revenue reached $100 million, up 66% YoY, driven by datacenter and CATV segments.
- Datacenter revenue ($44.2M) remained flat YoY but up 8% sequentially, with 32% from 200G/400G products.
- CATV revenue surged to $52.2M (4x YoY), driven by 1.8 GHz amplifier orders from a major MSO.
- Received a substantial order for Quantum Bandwidth products from a top North American cable operator, beginning shipments in Q4.

**【CFO Financial Commentary】**
- Non-GAAP gross margin improved to 28.9% (vs. 25% in Q3), benefiting from CATV product mix.
- Q4 non-GAAP loss per share was $0.02, in line with guidance.
- 2025 CapEx projected at $120M-$150M, focused on expanding 400G/800G production in Texas and Taiwan.
- Expect 800G demand to ramp in H2 2025, with 1.6T products targeting 2026.

**【Q&A Key Takeaways】**
- 800G capacity expansion in Texas aims for 120,000-140,000 units/month by mid-2025.
- CATV revenue growth constrained by MSO deployment rates, expected to plateau in 2025.
- 400G production capacity is near demand levels, with limited bottlenecks.
- Strategic investments in automation to reduce production costs by 80%-90%.
- Multiple hyperscale customers providing 800G demand forecasts, aligning with 2025 ramp expectations.

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