Fri, Feb 28, 12:40 PM (57 days ago)
**Applied Optoelectronics, Inc. (AAOI) Summary:** In 2024, Applied Optoelectronics, Inc. reported revenues of $249.4 million, a 14.6% increase from $217.6 million in 2023. The company experienced a net loss of $186.7 million, worsening from a $56.0 million loss in 2023. Key revenue drivers included the internet data center market (59.5% of total revenue) and CATV market (35.2%). Major customers included Microsoft (43.7% of revenue) and Digicomm (34.1%). Operating expenses rose to $132.7 million, with significant increases in R&D (52.8%) and sales/marketing (64.0%). Gross margins declined to 24.8% from 27.1%, primarily due to a lack of high-margin non-recurring engineering (NRE) project revenue. The company faces risks including customer concentration, supply chain disruptions, and reliance on a limited number of key customers. Future outlook remains cautiously optimistic, with expectations for continued demand in data centers and CATV markets. Financial condition shows $79.1 million in cash and equivalents, with $24.8 million in unused borrowing capacity. The company is actively remediating identified internal control weaknesses.