Q2 2024 Applied Optoelectronics Inc Earnings Call Transcript
Key Points
- Applied Optoelectronics Inc (AAOI) reported a 25% year-over-year increase in data center revenue, with a sequential growth of 19%.
- The company has begun receiving initial orders for 400G products from a large hyper-scale customer, expanding its reach to three out of the five largest hyper-scale data center customers in the US.
- Revenue for 100G products increased by 21% year-over-year, and revenue for 400G products more than doubled in the same period.
- The company anticipates significant improvement in its CATV business starting in Q3, with a ramp expected in Q4 and into 2025.
- Applied Optoelectronics Inc (AAOI) expects Q3 revenue to be between $60 million and $66 million, projecting over 45% sequential revenue growth.
- Non-GAAP gross margin for the second quarter was 22.5%, below the guidance range of 25.5% to 27.5%, primarily due to product mix.
- CATV segment revenue was down 38% year-over-year and 33% sequentially, driven by slow sales of DOCSIS 3.1 equipment.
- The company reported a non-GAAP operating loss of $16.2 million for the second quarter, compared to a loss of $8.7 million in the prior year.
- GAAP net loss for Q2 was $26.1 million, or a loss of $0.66 per basic share, compared to a loss of $16.9 million or $0.57 per share in Q2 of 2023.
- The gross margin in Q3 is expected to be lower than anticipated due to additional costs from the rapid ramp of 1.8 gigahertz CATV products.
Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics' Second Quarter 2024 Earnings Conference Call. (Operator Instructions) Please also note, today's call is being recorded.
I would now like to turn the call over to Lindsay Savarese, Investor Relations for AOI. Mrs. Savarese, you may begin.
Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics. I am pleased to welcome you to AOI's second quarter 2024 financial results conference call. After the market closed today, AOI issued a press release announcing its second quarter 2024 financial results and provided its outlook for the third quarter of 2024.
The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for one year.
Joining us on today's call is Dr.
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