Applied Optoelectronics Reports Third Quarter 2024 Results

　　SUGAR LAND, Texas, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today announced financial results for its third quarter ended September 30, 2024.

　　“We had a solid third quarter performance as we ramped up production capacity to meet our customers’ rollout schedules,” said Dr. Thompson Lin, Applied Optoelectronics Inc. Founder, President and Chief executive Officer. “We recorded double digit sequential growth in our data center business, driven by new wins for our 400G products, while our CATV business more than tripled from the second quarter as our customers actively transition to new architectures. Looking ahead, we are optimistic about the long-term demand drivers for both our datacenter and CATV businesses and believe we have the right team, product portfolio, and strategy in place to meet our customers’ needs.”

　　“Our revenue and gross margin for the third quarter were in-line with our expectations, but our non-GAAP loss per share was larger than we expected, which was primarily due to accelerated R&D spending due to greater than anticipated new customer requests, especially in our data center business where we saw notable interest in our 1.6 Terabit transceivers,” said Dr. Stefan Murry, Applied Optoelectronics Chief Financial Officer and Chief Strategy Officer. “We are carefully managing our balance sheet as we execute on our plans which anticipate a sustained period of growth in both our datacenter and CATV businesses.”

　　Third Quarter 2024 Financial Summary

　　GAAP revenue was $65.2 million, compared with $62.5 million in the third quarter of 2023 and $43.3 million in the second quarter of 2024.

　　GAAP gross margin was 24.4%, compared with 32.3% in the third quarter of 2023 and 22.1% in the second quarter of 2024. Non-GAAP gross margin was 25.0%, compared with 32.5% in the third quarter of 2023 and 22.5% in the second quarter of 2024.

　　GAAP net loss was $17.8 million, or $0.42 per basic share, compared with net loss of $9.0 million, or $0.27 per basic share in the third quarter of 2023, and a net loss of $26.1 million, or $0.66 per basic share in the second quarter of 2024.

　　Non-GAAP net loss was $8.8 million, or $ 0.21 per basic share, compared with non-GAAP net loss of $1.7 million, or $0.05 per basic share in the third quarter of 2023, and a non-GAAP net loss of $10.9 million, or $0.28 per basic share in the second quarter of 2024.

　　A reconciliation between all GAAP and non-GAAP information referenced above is contained in the tables below. Please also refer to “Non-GAAP Financial Measures” below for a description of these non-GAAP financial measures.

　　Fourth Quarter 2024 Business Outlook (+)

　　For fourth quarter of 2024, the company currently expects:

　　Revenue in the range of $94 million to $104 million.

　　Non-GAAP gross margin in the range of 27.5% to 29.5%.

　　Non-GAAP net income in the range of a loss of $1.9 million to income of $1.7 million, and non-GAAP income per share in the range of a loss of $0.04 to earnings of $0.04 using approximately 46 million shares.

　　(+) Please refer to the note below on forward-looking statements and the risks involved with such statements as well as the note on non-GAAP financial measures.