Applied Optoelectronics Inc AAOI shares are trading higher by 42.8% to $3.57 during Friday's trading session after the company announced the sale of its Chinese manufacturing facilities to Yuhan Optoelectronic Technology for $150 million.
The company anticipates that the transaction will be completed in 2023 and is subject to customary closing conditions and regulatory approvals.
"The significant proceeds from this transaction will enable us to make strategic investments in higher margin and higher growth opportunities," said Dr. Thompson Lin, Applied Optoelectronics Inc Founder, President and Chief Executive Officer.
"After careful consideration, we concluded that it is in the best interest of the company and our shareholders for AOI to exit the transceiver market and focus our resources on our CATV business and manufacturing lasers and laser components for the datacenter, CATV, telecom, and FTTH markets. Further, we believe that this transaction opens up new opportunities for customer expansion with our existing datacenter laser business, which has a large addressable market."
According to data from Benzinga Pro, Applied Optoelectronics Inc has a 52-week high of $8.86 and a 52-week low of $1.48.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.