Applied Optoelectronics Marginally Beats On Q1 Revenue, Issues Cautious Q2 Guidance

  • Applied Optoelectronics Inc AAOI reported first-quarter FY21 revenue growth of 22.8% year-on-year to $49.7 million, marginally beating the analyst consensus of $49.35 million.
  • Datacenter revenue reduced 22% Y/Y to $25.9 million, CATV rose 341.3% Y/Y to $18.6 million, Telecom revenue rose 75% Y/Y to $4.5 million, FTTH was $0.42 million, and Other revenue declined 47.1% Y/Y to $0.22 million.
  • Non-GAAP gross margin expanded 510 basis points to $24.6%.
  • Non-GAAP net loss declined 37.5% Y/Y to $5.5 million with an adjusted EPS loss of ($0.21), beating the analyst consensus of ($0.27) loss.
  • The company held $49.3 million in cash and equivalents.
  • Guidance: Applied Optoelectronics sees a Q2 revenue outlook of $51 million - $56 million, short of the analyst consensus of $57.39 million, and Non-GAAP gross margin outlook of 25.5% - 27.5%. 
  • It expects Non-GAAP net loss guidance of $3.8 million - $5.6 million, and adjusted EPS loss of ($0.14) - ($0.21), versus analyst consensus of ($0.18) loss.
  • The company continues to see softness in the datacenter business and is encouraged by the telecom market recovery and the continued strength in CATV business, CEO Dr. Thompson Lin said.
  • The company delivered a record Q1 for CATV business and ended with a strong backlog of CATV products which is expected to continue to drive growth in this segment going forward, Lin said.
  • Price action: AAOI shares traded higher by 4.70% at $7.56 on the last check Friday.


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