Applied Optoelectronics reported Q3 2024 revenue of $65.2 million, up 4.2% from $62.5 million in Q3 2023, driven by strong CATV demand which surged 104% to $20.9 million. However, data center revenue declined 16.1% to $40.9 million due to pricing reductions. Gross margin contracted to 24.4% from 32.3% year-over-year, while net loss widened to $17.8 million from $9.0 million.Research and development expenses increased 42% to $13.4 million as the company accelerated product development to meet customer demands, particularly for AI-related data center applications. Sales and marketing costs rose 58% to $4.8 million due to increased business development efforts in CATV and data center segments. The company maintained $41.4 million in cash and equivalents as of September 30.Looking ahead, the company expects increased demand for 400G data center products through year-end, supported by new hyperscale customer wins and growing AI-driven requirements. The company raised $59.9 million through an ATM offering which was terminated on November 6, 2024. Management continues to invest in manufacturing capacity expansion, including completion of a new factory in Ningbo, China expected in 2024.

Applied Optoelectronics reported Q3 2024 revenue of $65.2 million, up 4.2% from $62.5 million in Q3 2023, driven by strong CATV demand which surged 104% to $20.9 million. However, data center revenue declined 16.1% to $40.9 million due to pricing reductions. Gross margin contracted to 24.4% from 32.3% year-over-year, while net loss widened to $17.8 million from $9.0 million.Research and development expenses increased 42% to $13.4 million as the company accelerated product development to meet customer demands, particularly for AI-related data center applications. Sales and marketing costs rose 58% to $4.8 million due to increased business development efforts in CATV and data center segments. The company maintained $41.4 million in cash and equivalents as of September 30.Looking ahead, the company expects increased demand for 400G data center products through year-end, supported by new hyperscale customer wins and growing AI-driven requirements. The company raised $59.9 million through an ATM offering which was terminated on November 6, 2024. Management continues to invest in manufacturing capacity expansion, including completion of a new factory in Ningbo, China expected in 2024.