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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