Applied Opto's revenue 24 percent down on Q2
Q3 results impacted by lower demand from one large customer, but company says solid demand from large data centre customers is driving sales
Applied Optoelectronics, a US-based provider of fibre-optic access network products, has announced financial results for its third quarter ended September 30, 2017.
"While our third quarter results were negatively impacted by lower demand from a large customer, we continued to experience solid demand from our other large data centre customers, especially for our 100G CWDM transceivers, and revenue for our CATV products reached a new record," said Thompson Lin, Applied Optoelectronics, founder, president and CEO.
He added: "We remain confident in our leadership position in advanced optics. We are working diligently to diversify our customer base and are encouraged with the customer response so far, which led to nine design wins in the quarter, including three for our 100G products.
"We also continue to make progress on developing new innovative products and expanding our vertical integration to further extend the gap between AOI and the competition."
Total revenue was $88.9 million, up 27 percent compared with $70.1 million in Q3 2016, and down 24 percent compared with $117.4 million in Q2 2017.
GAAP gross margin was 44.3 percent, compared with 33.0 percent in Q3 2016 and 45.4 percent in Q2 2017. Non-GAAP gross margin was 44.4 percent, compared with 33.1 percent in Q3 2016 and 45.5 percent in Q2 2017.
GAAP net income was $19.4 million, or $0.95 per diluted share, compared with net income of $17.7 million, or $0.97 per diluted share in Q3 2016, and net income of $29.1 million, or $1.43 per diluted share in Q2 2017.
Non-GAAP net income was $22.0 million, or $1.08 per diluted share, compared with non-GAAP net income of $7.0 million, or $0.38 per diluted share in Q3 2016, and non-GAAP net income of $31.3 million, or $1.54 per diluted share in Q2 2017.
Q4 Outlook
For the fourth quarter of 2017, the company currently expects: revenue in the range of $81 million to $90 million; non-GAAP gross margin in the range of 41 percent to 43 percent; non-GAAP net income in the range of $16.6 million to $19.5 million, and non-GAAP fully diluted earnings per share in the range of $0.82 to $0.96 using approximately 20.3 million shares.
