On August 7, Applied Optoelectronics reported Q2 2019 revenue of $43.4 million, compared with $87.8 million in the second quarter of 2018 and $52.7 million in the first quarter of 2019. There was a GAAP net loss of $11.4 million, or $0.57 per basic share, compared with net income of $8.0 million, or $0.40 per diluted share in the second quarter of 2018, and a net loss of $10.5 million, or $0.53 per basic share in the first quarter of 2019. Non-GAAP net loss was $5.2 million, or $0.26 per basic share, compared with non-GAAP net income of $12.9 million, or $0.64 per diluted share in the second quarter of 2018, and a non-GAAP net loss of $5.4 million, or $0.27 per basic share in the first quarter of 2019.
“We are pleased with our execution in the quarter as we delivered revenue within our guidance range and achieved better than expected bottom-line results,” said Dr. Thompson Lin, Applied Optoelectronics Inc. founder and CEO. “The datacenter demand environment remained consistent with our expectations and we secured five new datacenter design wins. We continue to have good technical engagement with both existing and new customers and are encouraged by the positive response to our innovations.”
Some notes from the Q2 investor conference call:
- 73% of revenue was for data center products, 23% for CATV products, and 4% for FTTH, telecom and other.
- 72% of data-center revenue was from 40G and 23% was from 100G.
- Telecom products revenue was $1.6 million compared with $4.2 million in Q2 2018 due to lower sales in China given geopolitical trade tensions.
- There were three customers who constituted 10% or more of overall revenue. Two of these customers are hyperscale data center companies and they represented 30% and 29% of overall revenue. The third customer is in the CATV business and represented 14% of revenue.
- During the quarter, AOI secured a total of five new design wins among two US-based data-center customers.
- AOI said it is starting to see early signs of recovery among two of its hyperscale data-center customers.
- AOI recently showcased the ability of its 400G QSFP transceivers to break out into four individual 100G FR transceivers and interoperate with a leading 12.8 Tbps switch fabric ASIC.
- Revenue from CATV products decreased 31% year-over-year to $9.8 million compared with $14.2 million in Q2 of last year due to weaker demand from North American MSOs and in China.
- Regarding tariffs and global trade tensions, AOI execs said the company is able to adjust some of its manufacturing operations between its Taiwan and China factories
