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Applied Optoelectronics | 10-K: Annual report

SEC announcement ·  Feb 23 16:05
Summary by Moomoo AI
Applied Optoelectronics, a leading provider of fiber-optic networking products, reported a decrease in annual revenue from $222.8 million in 2022 to $217.6 million in 2023. Despite this, the company saw an improvement in gross margin, rising from 15.1% in 2022 to 27.1% in 2023. The net loss also improved, decreasing from $66.4 million in 2022 to $56.0 million in 2023. The company attributes the revenue decline primarily to decreased demand in the CATV market, offset by increased demand for internet datacenter products. Applied Optoelectronics is focused on the higher-performance segments of the internet data center, CATV, telecom, and FTTH markets, leveraging its vertically integrated manufacturing model. The company expects to release DOCSIS 4.0 products in 2024 and anticipates increased sales in the CATV market. Sales of 400 Gbps products are also expected to...Show More
Applied Optoelectronics, a leading provider of fiber-optic networking products, reported a decrease in annual revenue from $222.8 million in 2022 to $217.6 million in 2023. Despite this, the company saw an improvement in gross margin, rising from 15.1% in 2022 to 27.1% in 2023. The net loss also improved, decreasing from $66.4 million in 2022 to $56.0 million in 2023. The company attributes the revenue decline primarily to decreased demand in the CATV market, offset by increased demand for internet datacenter products. Applied Optoelectronics is focused on the higher-performance segments of the internet data center, CATV, telecom, and FTTH markets, leveraging its vertically integrated manufacturing model. The company expects to release DOCSIS 4.0 products in 2024 and anticipates increased sales in the CATV market. Sales of 400 Gbps products are also expected to exceed those of 100 Gbps products later in 2024. The company's future plans include continued sales of its existing products and a strategic focus on direct sales to major OEM customers and internet data center operators. Applied Optoelectronics terminated a divestiture agreement with Yuhan Optoelectronic Technology (Shanghai) Co., Ltd. due to the latter's failure to meet obligations, leading to an ongoing arbitration process. The company's financial performance is influenced by increasing consumer demand for bandwidth, pricing pressures, and customer concentration within end markets. Applied Optoelectronics has not declared or paid cash dividends and does not anticipate doing so in the foreseeable future, intending to retain all available funds for business operation and expansion.
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