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    Jeffrey Koche • Raymond James

    Jeffrey Koche's questions to Applied Optoelectronics Inc (AAOI) leadership

    Jeffrey Koche's questions to Applied Optoelectronics Inc (AAOI) leadership • Q4 2024

    Question

    Jeffrey Koche, on behalf of Simon Leopold, asked for a breakdown of 400G revenue related to the Microsoft agreement, the expected trend for front-end vs. back-end 400G demand, and the implied segment mix for datacenter versus CATV in the Q1 guidance.

    Answer

    CFO & CSO Dr. Stefan Murry declined to provide customer-specific or forward-looking product-line breakdowns due to NDAs and company policy. However, he reiterated that the Microsoft program would ramp later in the year and that CATV revenue is expected to plateau due to customer deployment constraints, with future growth primarily coming from datacenter. CEO Dr. Chih-Hsiang Lin added that Q1 guidance is limited by Lunar New Year manpower constraints, not demand, and noted strong demand for 400G single-mode transceivers from multiple U.S. customers.

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    Jeffrey Koche's questions to Applied Optoelectronics Inc (AAOI) leadership • Q3 2024

    Question

    Jeffrey Koche asked for clarification on the Microsoft-related revenue ramp, noting it seemed slower than expected, and questioned the surprising strength in 100G and 400G demand. He also sought more detail on the specific drivers for the anticipated gross margin improvement in the next quarter.

    Answer

    Executive Stefan Murry acknowledged that the Microsoft AOC revenue ramp was slower than expected but affirmed the company's commitment to its long-term revenue targets with that customer. He attributed the strength in 100G and 400G to hyperscalers simultaneously upgrading both legacy and new AI-focused infrastructure. For Q4 gross margin improvement, Murry pointed to manufacturing efficiencies in the recently ramped CATV product line and a better product mix in data center, with growing contributions from 400G and initial 800G sales.

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