Alliance Fiber Optic Products (NASDAQ: AFOP) reported Q3 EPS of $0.20, $0.15 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $18.6 million versus the consensus estimate of $24.69 million.

Peter Chang, President and Chief Executive Officer, commented, "During the third quarter, we experienced the effect of inventory control by our largest Web 2.0 customer, which resulted in a sequential decrease in our third quarter revenue. Despite that, our revenue from other customers grew on a year over year basis to help us achieve a similar level of revenues compared with the year ago quarter. We believe we adjusted to this temporary shortfall well and continued to deliver strong financial performance within our industry peer group. Most importantly, we made good progress meeting our customers' needs, extending our product technology and improving our operations during the quarter."

"Regarding forward guidance, we expect revenues in the remaining quarter of 2015 to be higher sequentially. Data bandwidth demands continue to increase and the conversion from copper technology to fiber technology in data center applications continues accelerating. We are encouraged by growing demands for our products and the prospect of delivering record sales and profits in the coming years." concluded Mr. Chang.

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