Applied Optoelectronics (AAOI) Stock | Leading the Way in Fiber-Optics


Applied Optoelectronics (NASDAQ: AAOI)

Texas based Applied Optoelectronics is one of the chief providers of fiber-optic network providers. The three major markets they serve are fiber to the home, Cable Television Broadband and internet data centers. Early today they announced their overwhelmingly favorable second quarter results, which ended on June 30, 2015.


AAOI Earnings & Outlook

Applied Optoelectronics announced their second quarter non-GAAP earnings exceeded the expectations of the initial prior outlook. Initially, the outlook was thought to be $0.25 to $0.30 per share. After the second quarter earnings were announced, they are now thought to be closer to $0.36 to $0.38 per share.  The second quarter revenues of $49.6 million vs. $43.15 million Capital IQ Consensus and above the prior outlook of $43.0 to $45.0 million.  GAAP and non-GAAP net income in the range from $5.8 million to $6 million, above the prior non-GAAP outlook of $3.8 million to $4.5 million   NASDAQ

The June 22nd addition of the new Distributed Feedback lasers stated that this revolutionary new technology will reduce power consumption and enable high data throughput. Looking forward with this new technology, the overall outlook of Applied Optoelectronics is looking to reinvigorate the fiber-optic playing field. Yahoo Finance

Applied Optoelectronics’ CEO Comments

Dr. Thompson Lin, the CEO & Founder of AAOI has said

“Our better than expected results were driven by strong demand for our CATV and data center products as well as our ability to manufacture and ship 40Gbs transceivers ahead of plan.We are pleased with our overall progress and would like to thank the AOI team for their diligence and hard work in delivering these results. I look forward to sharing our detailed second quarter financial results on our previously scheduled conference call in August.” Yahoo Finance


Technical Analysis

AAOI gapped up $2.35 today to open up trading at $19.46 which is a 13% increase, which puts us near the $20 resistance level. It previously reached the $20 resistance level on June 24, 2015 after an announcement on June 22nd stating the introduction of laser diodes operating at a rate of up to 25 gigabits per second. Last time it reached the resistance level of $20 the stock dropped to $15.54, which was last week on July 9. If the stock can break the resistance level it has room to run as the yearly high is $24.10.  Maintaining the gap level is key moving forward to build up some consolidation at these levels for a breakthrough of the resistance price, otherwise the stock could fade and fill in the gap.                                                                               


Company Profile

“Applied Optoelectronics, Inc. designs and manufactures optical communications products for Internet data center, cable television (CATV), and fiber-to-the-home markets. It offers optical modules, optical transceivers, lasers, transmitters, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to CATV and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels worldwide. Applied Optoelectronics, Inc. was founded in 1997 and is headquartered in Sugar Land, Texas.” Yahoo Finance