Applied Optoelectronics (AAOI) Cuts Q3 Guidance
Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today updated its revenue guidance for its third quarter ended Sept. 30, 2018.
Applied Optoelectronics currently expects revenue for its third quarter 2018 to be between $55 million and $58 million, below the company's previous guidance of $82 million to $92 million. The company will report detailed third quarter financial results and host a conference call on Nov. 7, 2018.
(**Street sees Q3 revenue of $88.5 million)
"During the third quarter, we identified an issue with a small percentage of 25G lasers within a specific customer environment. Consistent with AOI's commitment to supreme product quality and customer support, we mutually agreed with the customer to temporarily suspend shipments of certain transceivers utilizing these lasers while we worked to gain a deeper understanding of the scope of the issue and implement a solution. We have since determined that less than one percent of these lasers were subject to this issue, we have enacted a solution and with the agreement of the customer, resumed shipments," said Dr. Thompson Lin, Applied Optoelectronics, Inc. founder, president and CEO.
"We hold ourselves to a very high standard at AOI and the measures we took this quarter reflect our strong commitment to our customers. We believe that our customers appreciate our willingness to thoroughly resolve any issues, even at the expense of a delay in our revenue, and we believe that we continue to have strong relationships with our customers. Outside of the temporary delay in shipments that impacted our third quarter revenue, sales and shipments as well as the pricing environment were consistent with our prior expectations," continued Lin.
Conference Call Information
Applied Optoelectronics intends to release its full financial results for the third quarter 2018 after U.S. markets close on Wednesday, Nov. 7, 2018. The company will host a conference call and webcast for analysts and investors to discuss its third quarter 2018 financial results and outlook for its fourth quarter 2018 on Nov. 7, 2018 at 4:30 p.m. Eastern time / 3:30 p.m. Central time. Open to the public, investors may access the call by dialing (412) 717-9586.
A live webcast of the conference call and supplemental financials will be accessible from the company's website at investors.ao-inc.com. Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing (412) 317-0088 and entering passcode 10124366.