Applied Optoelectronics Marginally Beats On Q1 Revenue, Issues Cautious Q2 Guidance

Applied Optoelectronics Inc AAOI reported first-quarter FY21 revenue growth of 22.8% year-on-year to $49.7 million, marginally beating the analyst consensus of $49.35 million.
Datacenter revenue reduced 22% Y/Y to $25.9 million, CATV rose 341.3% Y/Y to $18.6 million, Telecom revenue rose 75% Y/Y to $4.5 million, FTTH was $0.42 million, and Other revenue declined 47.1% Y/Y to $0.22 million.
Non-GAAP gross margin expanded 510 basis points to $24.6%.
Non-GAAP net loss declined 37.5% Y/Y to $5.5 million with an adjusted EPS loss of ($0.21), beating the analyst consensus of ($0.27) loss.
The company held $49.3 million in cash and equivalents.
Guidance: Applied Optoelectronics sees a Q2 revenue outlook of $51 million - $56 million, short of the analyst consensus of $57.39 million, and Non-GAAP gross margin outlook of 25.5% - 27.5%.
It expects Non-GAAP net loss guidance of $3.8 million - $5.6 million, and adjusted EPS loss of ($0.14) - ($0.21), versus analyst consensus of ($0.18) loss.
The company continues to see softness in the datacenter business and is encouraged by the telecom market recovery and the continued strength in CATV business, CEO Dr. Thompson Lin said.
The company delivered a record Q1 for CATV business and ended with a strong backlog of CATV products which is expected to continue to drive growth in this segment going forward, Lin said.
Price action: AAOI shares traded higher by 4.70% at $7.56 on the last check Friday.

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