AAOI
Applied Optoelectronics, Inc.28.96
-0.94-3.14%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Demand vastly exceeds capacity
Q&A amplified booming hyperscale demand outpacing capacity, with Thompson flagging >$100M in 800G orders and >$200M in 1.6T imminent within months. Firmware tweaks wrap mid-March, unleashing Q2 800G ramp to $25-30M—largest data center slice—while 400G stays strong in Q1. Laser shortages spur tripling Texas output by mid-2027; tariff recoup could yield $7-8M. New CATV MSOs bolster growth despite softer operator CapEx. Demand swamps capacity. Management exuded confidence on execution, though supply chain bites.
Key Stats
Market Cap
1.98BP/E (TTM)
-Basic EPS (TTM)
-3.46Dividend Yield
0%Recent Filings
8-K
Doubles ATM offering to $500M
Applied Optoelectronics doubled its at-the-market equity offering capacity to $500 million via an amendment on March 12, 2026, with Raymond James and Needham, after selling nearly $250 million in 2.5 million shares. Sales continue through Nasdaq 'at the market' transactions, agents earning 2% commissions. Doubles fundraising firepower. Termination possible anytime by either party.
8-K
AAOI inks $30.9M cleanroom deal
Applied Optoelectronics signed a $30.9M design-build contract with LCC3 Solution for a 92,674 sq ft ISO 6 cleanroom in its Sugar Land warehouse, effective February 13 but executed February 27, targeting substantial completion by September 30. Delays trigger up to $1.6M in liquidated damages; early milestones and validation earn up to $5.1M in incentives. Cleanroom expansion bolsters manufacturing capacity.
8-K
Signs 11-year Houston facility lease
Applied Optoelectronics locked in a 130-month lease for 153,928 sq ft in Houston's Building #3, effective February 10, 2026, with five months' base rent abated and $3.08M tenant improvement allowance. Rent escalates from $5.16/RSF annualized (months 6-10) to $14.56/RSF (final 10 months) at 3.5% average annual hikes; upfront prepaid rent $163K, security deposit $2M (reducible). Early termination after 82 months or purchase option at $30.3M by December 15, 2026—big flexibility baked in.
8-K
ATM equity shelf launched
Applied Optoelectronics entered an Equity Distribution Agreement on February 26, 2026, with Raymond James and Needham to sell up to $250 million in common stock via at-the-market offerings. Sales agents earn 2% commissions; the deal terminates after full issuance or at will. Company controls timing and pricing. No sales obligation exists.
10-K
FY2025 results
Applied Optoelectronics crushed FY2025 with revenue soaring 82.8% to $455.7M, fueled by CATV exploding 179.5% to $245.1M on DOCSIS 4.0 ramps while data center grew 31.7% to $195.7M amid AI-driven upgrades; gross margins leaped to 30.0% from 24.8% via scale. Q4 accelerated the momentum, powering through China seasonality as U.S./Taiwan production kicked in. Cash burned on $210M capex for capacity, yet $216M liquidity holds with $125M 2030 Notes. Key customers Digicomm (53%) and Microsoft (29%) dominate. Customer concentration risks quarterly swings.
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