APPLIED OPTOELECTRONICS, INC. SEC 10-Q Report

Applied Optoelectronics, Inc. (AOI), a leading provider of fiber-optic access network products for the internet data center, cable television (CATV), and fiber-to-the-home (FTTH) markets, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial and operational improvements, driven by increased demand in key market segments and strategic business initiatives.

Financial Highlights

• Total Revenue: $102.95 million for the three months ended June 30, 2025, representing a 137.9% increase from the same period in 2024, driven by increased demand from customers, particularly in the CATV and Data Center markets.
• Gross Profit: $31.16 million for the three months ended June 30, 2025, up 225.9% from the same period in 2024, primarily due to higher sales of high gross margin products and ongoing efforts to reduce production costs.
• Loss from Operations: $(15.98) million for the three months ended June 30, 2025, an improvement from $(26.24) million in the same period in 2024, reflecting increased revenue and gross profit.
• Net Loss: $(9.10) million for the three months ended June 30, 2025, compared to $(26.12) million in the same period in 2024, indicating a significant reduction in net loss due to improved gross profit and other income.
• Net Loss Per Share: $(0.16) for the three months ended June 30, 2025, compared to $(0.66) in the same period in 2024, reflecting the improved net loss position.

Business Highlights

• Revenue Segments: The company reported significant growth in its CATV segment, with revenue increasing by 862.9% for the three months ended June 30, 2025, compared to the same period in 2024. This growth is attributed to a major network upgrade project by a North American MSO customer. The Data Center segment also saw a 30.4% increase in revenue, driven by increased orders for 100G and 400G data center products.
• Geographical Performance: Revenue from China increased significantly, contributing $62.6 million for the three months ended June 30, 2025, compared to $12.4 million in the same period in 2024. This growth is largely due to increased demand for the company's products in the region.
• Sales Units: The company experienced increased orders for its high-capacity optical networking technology, particularly in the data center market, which is driven by the need for higher processing capacity to accommodate applications enabled by generative AI.
• New Product Launches: The company has been focusing on developing new products to meet customer demand, particularly in the data center and CATV markets. This includes efforts to increase processing capacity within data centers.
• New Production Launches: The company has expanded its production capabilities, particularly in its facilities in Sugar Land, Texas, and Taiwan, to meet the increased demand for its products.
• Future Outlook: The company expects continued growth in demand for its data center products through the end of 2025, driven by customer forecasts and new supply agreements, such as the one with Microsoft. The company is also optimistic about the recovery in the CATV market and the ongoing network upgrade projects.

SEC Filing: APPLIED OPTOELECTRONICS, INC. [ AAOI ] - 10-Q - Aug. 07, 2025