The following is a summary of the Applied Optoelectronics, Inc. (AAOI) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 revenue stood at $43.3 million, which was within the company's guidance range.

• Non-GAAP gross margin for Q2 was 22.5%, below the anticipated range of 25.5% to 27.5%, attributed primarily to product mix.

• Non-GAAP loss per share was $0.28, which was better than the guided range of loss of $0.29 to $0.35 per share.

• Notable revenue increase in data center products, with $34.4 million recorded, up 25% year-over-year.

• CATV segment revenue decreased to $5.8 million, down 38% year-over-year, affected by slow sales of DOCSIS 3.1 equipment.

Business Progress:

• Received initial orders for 400G products from a major new hyperscale customer.

• Started ramping up manufacturing for 800G products with multiple hyperscale customers, with expectations for orders to begin in the fourth quarter of this year.

• Finalized the qualification testing for new 1.8 GHz amplifier models in the CATV segment and begun negotiating initial orders.

Opportunities:

• Continued growth and expansion in data center operations driven by new and increased 400G and upcoming 800G product lines.

• Expected improvements and revenue increase in CATV segment from transitioning to DOCSIS 4.0 and sales of new amplifier products.

Risks:

• Slow initial ramp-up of VCSEL-based 400G active optical cables leading to delayed revenue impacts.

• Anticipated near-term gross margin pressures due to ramp costs and product mix shifts, particularly in the CATV segment.

More details: Applied Optoelectronics IR

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