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Applied Optoelectronics, Inc. (NASDAQ:AAOI), a semiconductor company based in Sugar Land, Texas, announced on Monday that its Board of Directors has approved a change to its bylaws affecting stockholder meetings. The amendment, effective April 2, 2025, modifies the quorum requirement for special meetings of the stockholders. The announcement comes as the company’s stock trades at $15.09, having experienced significant volatility with a 22.6% decline in the past week. According to InvestingPro data, the stock currently appears overvalued against its Fair Value estimate.
Previously, the presence of a larger percentage of shareholders was necessary to constitute a quorum for such meetings. With the new amendment, the quorum has been reduced to one-third (33.33%) of the company’s voting power of the issued and outstanding shares of capital stock entitled to vote, whether present in person or represented by proxy.
This amendment to the Amended and Restated By-laws aims to facilitate the conduct of special meetings, allowing decisions to be made with the presence of a smaller proportion of stockholders. The company has attached the full text of the amendment, referred to as "Amendment No. 1 to the Amended and Restated By-laws," as an exhibit to its SEC filing.
Applied Optoelectronics specializes in the design, manufacturing, and sale of various fiber-optic networking products, primarily for the internet data center, cable television (CATV), and fiber-to-the-home (FTTH) markets.
Investors and stakeholders of Applied Optoelectronics may find the details of the bylaw amendment in the company’s latest 8-K filing with the SEC. This adjustment to the quorum requirement reflects the company’s ongoing efforts to streamline its governance processes. The information provided in this article is based on a press release statement.
In other recent news, Applied Optoelectronics reported its fourth-quarter 2024 financial results, which aligned with analysts’ expectations. The company posted a non-GAAP loss per share of $0.02 and revenue of $100.3 million, marking a 66% year-over-year increase in revenue. This growth was driven by strong demand in the data center and CATV markets. In a significant development, Applied Optoelectronics announced a warrant agreement with Amazon (NASDAQ:AMZN), allowing the e-commerce giant to acquire up to 7.95 million shares, potentially generating up to $4 billion in discretionary purchases. Analyst Mike Genovese from Rosenblatt maintained a Buy rating, highlighting the strategic nature of the Amazon deal for the company’s market positioning.
Moreover, B.Riley upgraded Applied Optoelectronics from Sell to Neutral, setting a price target of $13.00, while Raymond (NSE:RYMD) James adjusted their price target to $31.00, maintaining an Outperform rating. The company’s datacenter unit’s performance did not meet expectations despite strong CATV sales, but analysts at Raymond James emphasized the potential in the 800G and 1.6T markets. Applied Optoelectronics also initiated a $100 million equity distribution agreement with Raymond James & Associates, allowing for the sale of common stock shares to raise additional capital. These developments reflect the company’s strategic financial planning and its efforts to expand production capacity to meet anticipated demand.
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