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Sep 30, 2020
Applied Optoelectronics Q3 2020 Earnings Report
Reported good growth in each of the three major business segments and exceeded gross margin expectations.
Key Takeaways
Applied Optoelectronics reported third quarter 2020 results with good growth in its three major business segments and exceeded gross margin expectations. They secured a second qualification for a 400G product with a major datacenter operator.
Recorded good growth in each of the three major business segments.
Exceeded gross margin expectations.
Secured second qualification for a 400G product with a major datacenter operator.
Customer interest continues to increase for the 400G product.
Forward Guidance
The company expects headwinds in the fourth quarter as hyperscale data center customers adjust their inventory levels downward, and they see effects of what they believe to be a temporary pause in 5G deployments in China. However, they believe their customer relationships and market share position remains strong, while the continued demand for higher bandwidth will drive long-term growth.
Challenges Ahead
- Expect headwinds in the fourth quarter as hyperscale data center customers adjust their inventory levels downward.
- See effects of what they believe to be a temporary pause in 5G deployments in China.
- Impact of the COVID-19 pandemic on business and financial results
- Reduction in the size or quantity of customer orders
- Potential pricing pressure
Historical Earnings Impact
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Avg. Return Before/After Earnings
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