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SUGAR LAND, Texas - Applied Optoelectronics, Inc. (NASDAQ:AAOI), a fiber-optic product manufacturer with a market capitalization of $921 million and impressive revenue growth of 50.3% over the last twelve months, has completed its first volume shipment of high-speed data center transceivers to a recently re-engaged major hyperscale data center customer, the company announced Wednesday. According to InvestingPro data, analysts anticipate continued sales growth for the company this year.
This marks the first significant quantity shipment to this customer in several years, according to the fiber-optic product manufacturer.
"Throughout the year, we have been expecting growth in data center transceiver sales, particularly in the second half of the year," said Dr. Thompson Lin, AOI’s Founder, Chairman, and CEO.
The company indicated this shipment represents a milestone in what it expects to be significant business opportunities with this customer. Applied Optoelectronics is currently executing a previously announced U.S.-based capacity expansion plan. Based on InvestingPro’s Fair Value analysis, the stock appears to be overvalued at current levels. Subscribers can access 10 additional ProTips and comprehensive financial metrics in the Pro Research Report.
Applied Optoelectronics develops and manufactures optical products for broadband fiber access networks, serving internet datacenter, cable television broadband, telecom, and fiber-to-the-home markets. The company maintains facilities in Sugar Land, Texas, as well as in Taipei, Taiwan and Ningbo, China.
The company had previously projected increased shipments in the second half of 2025, with this delivery aligning with that forecast, according to information provided in the press release statement.
The optical components manufacturer supplies products to tier-1 customers across all four of its target markets.
In other recent news, Applied Optoelectronics reported its first-quarter 2025 earnings, highlighting a narrower-than-expected net loss of $0.02 per share, surpassing the forecasted loss of $0.04. The company achieved a revenue of $99.9 million, slightly exceeding expectations and more than doubling year-over-year. Despite these positive earnings surprises, the stock experienced a decline of 11.25% in after-hours trading, indicating investor concerns about future growth. The company is expanding its production capacity in the U.S. and Taiwan to meet anticipated demand in the CATV and data center markets. Looking ahead, Applied Optoelectronics projects second-quarter revenue between $100 million and $110 million, with a non-GAAP gross margin of 29.5% to 31%. Analysts from firms like Raymond James have inquired about inventory management and the expected revenue from 800G transceivers, to which executives expressed confidence in their strategy. The company is actively working on expanding production capabilities, with plans to increase production of advanced optical transceivers in Texas. Applied Optoelectronics continues to engage with major customers, including Amazon, and expects a material revenue contribution from its 800G products by the third quarter.
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