CSIMarket
 
Applied Optoelectronics Inc   (AAOI)
Other Ticker:  
 
    Sector  Technology    Industry Semiconductors
   Industry Semiconductors
   Sector  Technology
 
Price: $12.9800 $0.28 2.205%
Day's High: $13.205 Week Perf: -8.98 %
Day's Low: $ 12.38 30 Day Perf: -42.08 %
Volume (M): 1,940 52 Wk High: $ 24.75
Volume (M$): $ 25,180 52 Wk Avg: $10.32
Open: $12.72 52 Wk Low: $1.60



 Market Capitalization (Millions $) 416
 Shares Outstanding (Millions) 32
 Employees 3,054
 Revenues (TTM) (Millions $) 217
 Net Income (TTM) (Millions $) -56
 Cash Flow (TTM) (Millions $) 20
 Capital Exp. (TTM) (Millions $) 10

Applied Optoelectronics Inc

Applied Optoelectronics, Inc. is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television, or CATV, telecommunications, or telecom, fiber-to-the-home, or FTTH. We design and manufacture a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment.

In designing products for our customers, we begin with the fundamental building blocks of lasers and laser components. From these foundational products, we design and manufacture a wide range of products to meet our customers’ needs and specifications, and such products differ from each other by their end market, intended use and level of integration. We are primarily focused on the higher-performance segments within all four of our target markets, which increasingly demand faster connectivity and innovation.

The four end markets we target are all driven by significant bandwidth demand fueled by the growth of network-connected devices, video traffic, cloud computing and online social networking. To address this increased bandwidth demand, CATV and telecommunications service providers are competing directly against each other by providing bundles of voice, video and data services to their subscribers and investing to enhance the capacity, reliability and capability of their networks. The trend of rising bandwidth consumption also impacts the internet data center market, as reflected in the shift to higher speed server connections. As a result of these trends, fiber-optic networking technology is becoming essential in all four of our target markets, as it is often the only economic way to deliver the desired bandwidth.

The internet data center market is our largest and fastest growing market. Our customers in this market are generally large internet-based (“Web 2.0”) data center operators, to whom we supply optical transceivers that plug into switches and servers within the data center and allow these network devices to send and receive data over fiber optic cables. The majority of the data center optical transceivers that we sell utilize our own lasers and subassemblies (we refer to the transceivers subassemblies as “light engines”), and we believe that our in-house technology and manufacturing capability for these lasers and subassemblies gives us an advantage over many of our competitors who often lack either development or manufacturing capabilities for these advanced optical modules.

The CATV market is our most established market, for which we supply a broad array of products, including lasers, transmitters and transceivers, and turn-key equipment. Sales of headend, node and distribution equipment have contributed significantly to our revenue in recent years as a result of our ability to meet the needs of CATV equipment vendors who have continued to outsource both the design and manufacturing of this equipment. While equipment vendors have relied upon third parties to assemble portions of their products, within the past eight years certain of our customers have accelerated the outsourcing of the design and manufacturing of both headend equipment and node equipment to third parties. The shift is due in part to the sophisticated engineering expertise needed to perform this work. We believe that our extensive high-speed optical, mixed-signal semiconductor and mechanical engineering capabilities position us well to benefit from these industry dynamics.

Our vertically integrated manufacturing model provides us several advantages, including rapid product development, fast response times to customer requests and control over product quality and manufacturing costs. We design, manufacture and integrate our own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition, or MOCVD, and our proprietary Molecular Beam Epitaxy, or MBE, fabrication process, which we believe is unique in our industry. We manufacture the majority of the laser chips and optical components that are used in our products. The lasers we manufacture are proven to be reliable over time and highly tolerant of changes in temperature and humidity, making them well-suited to the CATV and FTTH markets where networking equipment is often installed outdoors.


Trends in the Internet Data Center Market. To support the substantial increase in bandwidth consumption, internet data center operators are increasing the scale of their internet data centers and accelerating data transmission rates. As a result, there is an ongoing transition from the use of copper cable, typically at speeds up to 1 gigabit per second (Gbps), to optical fiber as a transport medium, typically providing speeds from 10 Gbps to 100 Gbps. In recent years, a number of leading internet companies have adopted more open internet data center architectures, using a mix of systems and components from a variety of vendors, and in some cases designing their own equipment. For these companies, compatibility of new networking equipment with legacy infrastructure is not as important, and consequently, these companies are more willing to work with non-traditional equipment vendors, which we believe creates an open and growing opportunity for optical device vendors. Moreover, transmission speeds have continued to increase among the companies who have previously transitioned from copper-based to fiber-based infrastructure, resulting in opportunities for optical device vendors to supply new optical transceivers capable of operating at these higher data rates.

Trends in the CATV Market. In recent years, CATV service providers have invested extensively to support high speed, two-way communications and we expect that they will continue to do so. In North America, in particular, CATV service providers have begun to upgrade their networks with new technologies like DOCSIS 3.1, which enables them to offer higher speed connections to their customers. In order to increase available bandwidth for their customers beyond the bandwidth possible with the introduction of DOCSIS 3.1, cable MSOs have been reducing the number of customers that are connected to a single node. By reducing the number of “homes per node,” the average bandwidth available to each customer is increased. Other new technologies, such as Converged Cable Access Platform (CCAP) and “Remote PHY” are under development by cable equipment suppliers. These technologies are being developed to be a cost-effective solution to provide higher available bandwidth to CATV customers.

While equipment vendors have historically relied upon third parties to assemble portions of their products, within the past eight years, certain of our customers have accelerated the outsourcing of both the design and manufacturing of both headend equipment and node equipment to third parties. The shift is due in part to the sophisticated engineering expertise needed to perform this work, along with the proliferation of new equipment designs needed to support DOCSIS 3.1.

Trends in the Telecom Market. The telecom market is composed of customers who deploy wireline optical networks, other than Passive Optical Networks, or PONs, for telecommunications access networks, including for backhaul of cellular telephone signals. As demand for mobile internet connectivity has increased in recent years, reliable and high-speed optical networks have become increasingly important. In particular, the use of wavelength division multiplexing (WDM) to expand the capacity of mobile networks has led to increased demand for WDM components (including lasers and transceivers) by telecom equipment manufacturers. In coming years, we believe that the deployment of advanced 5G networks will result in increased demand for optical components, especially those used in connecting between antennas and base stations, as well as for backhaul as mentioned above.

Trends in the FTTH Market. The FTTH market generally refers to the PONs that telecommunications service providers deploy. The most commonly deployed PON technology is Gigabit PON, or GPON, which delivers up to 2.5 Gbps of data, but due to the splitting of the bandwidth among multiple users, the actual bandwidth delivered to an individual subscriber is far less than 2.5 Gbps. One approach that does support true 1 Gbps service to the home is wavelength division multiplexing PON, or WDM-PON, a technology that enables the transmission of multiple wavelengths of data over a single fiber-optic strand.

We experience certain challenges within our target markets, including continuous pressure to innovate and deliver highly integrated products that perform reliably in harsh, demanding environments and to produce high-quality devices in large volumes at competitive prices.

Our Solutions

By addressing the challenges in our target markets, we provide the following benefits to our customers:

Enable customers to deliver innovative products. We leverage our extensive expertise in high-speed optical, mixed-signal semiconductor and mechanical engineering, and MOCVD and our proprietary MBE laser fabrication process to deliver technologically advanced products to our customers.

Enhance efficiency and cost effectiveness of our customers’ supply chains. We design and sell products at the level of integration desired by a customer, from components to turn-key equipment, providing our customers a dependable, cost-effective and simplified supply chain.

Deliver high quality, reliable products in high volume. As a vertically integrated supplier, we are able to monitor and maintain quality control throughout the production process, using our internally produced components where possible for our final products. With manufacturing facilities in the U.S., Taiwan and China, we can support high volume production and timely delivery for our customers around the world.

Provide sophisticated design solutions to our customers. We believe our in-house expertise in both analog and digital optical engineering enables us to design comprehensive solutions that meet many of the different network architectures and protocols used by our customers.

Our Strengths

Our key competitive strengths include the following:

Proprietary technological expertise and track record of innovation. We continue to develop innovative products by leveraging our technological expertise, including our proprietary MBE and MOCVD laser fabrication process.

Innovative light engine design and manufacturing. High-speed data center interconnect transceivers increasingly rely on multiple parallel optical signals. Our expertise in designing and manufacturing light engines, which combine lasers and photodiodes with channel multiplexing and de-multiplexing elements, gives us the ability to quickly develop new products for our data center customers.

Proven system design capabilities. We have extensive expertise and proven design capabilities in high-speed optical, mixed-signal semiconductor and mechanical engineering, which we believe position us to take advantage of the continuing shift to outsourced design and manufacturing among CATV equipment vendors.

Highly customized products. Many of our products have some level of customization, making it more difficult for our customers to switch rapidly to another supplier. We believe this element of customization contributes to longer product lifecycles and more stable product pricing.

Industry-leading position in the CATV market. We have continued to be awarded new design and manufacturing opportunities for CATV components and equipment. We serve a majority of the largest CATV equipment manufacturers in the world and our knowledge of both their requirements and the needs of their customers (the CATV network operators) allows us to access these new opportunities.

Vertically integrated, geographically distributed manufacturing model. Our vertically integrated design and manufacturing process encompasses various steps from laser design and fabrication to complete optical system design and assembly. Furthermore, we have geographically distributed our manufacturing by strategically locating our operations in the U.S., China and Taiwan to reduce development time and production costs, to better support our customers and to help protect our intellectual property.

 



   Company Address: 13139 Jess Pirtle Blvd. Sugar Land 77478 TX
   Company Phone Number: 295-1800   Stock Exchange / Ticker: NASDAQ AAOI
   


Customers Net Income grew by AAOI's Customers Net Profit Margin grew to

55.14 %

13.93 %

• Customers Performance • Customers Expend. • Customers Efficiency • List of Customers


   

Stock Performances by Major Competitors

5 Days Decrease / Increase
     
IPGP   -4%    
KE   -6.91%    
MXL   -10.79%    
OSIS        0.57% 
PLXS   -2.71%    
WOLF   -13.5%    
• View Complete Report
   



Applied Optoelectronics Inc

2. Struggling to Stay Afloat: A Closer Look at Applied Optoelectronics Inc's Financial Troubles



Applied Optoelectronics Inc, a leading semiconductor company, recently released its financial report for the period ending December 31, 2023. Unfortunately, the company's performance demonstrated concerning trends, warranting a bearish outlook for investors. This article will delve into the financial figures indicating a steep decline in profitability, revenue erosion, lower inventories, reduced accounts receivable, and an alarming shortfall. Additionally, we will examine the impact of non-GAAP net losses on the company's outlook, recent stock performance, and its implications for future investments.
Deteriorating Financial Performance
Applied Optoelectronics Inc reported a loss of $-0.33 per share for the financial period ending December 31, 2023. While this represents an improvement compared to a loss of $-0.69 per share in the previous year, it is worth highlighting that the company's loss expanded from $-0.27 per share in the prior quarter. This indicates a concerning trend of increasing losses, which cannot be easily overlooked.

Applied Optoelectronics Inc

AAOI Achieves Remarkable Top-Line Growth, Sets New Records in Fiscal Year 2023



The performance of Applied Optoelectronics Inc (AOI) has caught the attention of investors and industry experts alike. Over the last five trading days, AOI stock witnessed a decline of -3.35%. However, this slight drop should not overshadow the remarkable year-to-date performance of 398.14%. Moreover, AOI is currently trading on the NASDAQ at a significant premium of 79.8% above its 52-week average. Understanding AOI's recent financial results and analyzing their potential impact will shed light on the company's future prospects.
Revenue Growth:
In comparison to the prior year's financial reporting period, AOI reported a revenue increase of 9.668% to reach $62.17 million. This growth is particularly noteworthy, as the rest of the semiconductor industry experienced a contraction of -9.17% over the same period. The strong revenue gain showcases AOI's ability to navigate market challenges effectively. Investors will be eagerly watching to see if this momentum continues in the next financial reporting period.

Applied Optoelectronics Inc

Semiconductor Giant Applied Optoelectronics Inc Rocked by a Shocking 21.8% Revenue Plunge in Q2 2023 ? A Dire Warning for the Tech World?



Applied Optoelectronics Inc, a leading Semiconductors company, recently released its financial results for the most recent fiscal period. The report highlighted weak demand, which led to an increase in losses. Additionally, revenue saw a significant decline compared to the previous year. These figures, combined with other factors such as a growing net loss per share and a larger-than-expected shortfall, indicate potential challenges for the company going forward.
1. Decrease in Revenue:
The financial report indicates that Applied Optoelectronics Inc experienced a substantial decrease in revenue. Year-on-year, revenue fell by a significant 21.8% from $52.30 million to $40.90 million. Additionally, in the first quarter of the current fiscal year, revenue declined by 22.878% from $53.03 million. This decline in revenue raises concerns about the company's ability to generate sufficient income in the future.

Applied Optoelectronics Inc

Applied Optoelectronics Inc's Loss Per Share Narrows in Q1 2023, but Revenue Growth Remains Marginal

Investors in Applied Optoelectronics Inc. (AAOI) may feel somewhat relieved after the company reported a reduction in its loss per share for the financial period ending March 31, 2023. The company reported a loss of $-0.56 per share, compared to a loss of $-0.58 per share the previous year.
Furthermore, EPS improved from $-0.69 per share in the preceding financial reporting period. However, the company's revenue growth barely increased by 1.508% to $53.03 million from $52.24 million in the previous year's similar financial reporting period. Sequentially, revenue declined by -13.89% from $61.58 million.






 

Applied Optoelectronics Inc's Segments
 
 
• View Complete Report
  Company Estimates  
  Revenue Outlook
Applied Optoelectronics Inc does not provide revenue guidance.

Earnings Outlook
Applied Optoelectronics Inc does not provide earnings estimates.

 
Geographic Revenue Dispersion




Help

About us

Advertise

CSIMarket Company, Sector, Industry, Market Analysis, Stock Quotes, Earnings, Economy, News and Research. 
   Copyright © 2024 CSIMarket, Inc. All rights reserved. This site uses cookies to make your browsing experince better. By using this site, you agree to the Terms of Service and Privacy Policy - UPDATED (Read about our Privacy Policy)

Intraday data delayed per exchange requirements. All quotes are in local exchange time. Intraday data delayed 15 minutes for Nasdaq, and other exchanges. Fundamental and financial data for Stocks, Sector, Industry, and Economic Indicators provided by CSIMarket.com