應用光電子公司第二季收入創新高 重返非GAAP盈利 數據中心業務倍增

EX-99.1
2
aaoi_ex9901.htm
PRESS RELEASE

 

Exhibit 99.1

 

 

Applied Optoelectronics
Reports Second Quarter 2026 Results 

 

Sugar Land, Texas, August 6, 2026 – Applied Optoelectronics,
Inc. (NASDAQ: AAOI) (“AOI”), a leading provider of advanced optical and HFC networking products that power AI, today announced
financial results for its second quarter ended June 30, 2026.

 

“Q2 was a pivotal quarter for AOI. We delivered record revenue
for our fifth consecutive quarter and achieved an important milestone as we returned to non-GAAP profitability in the quarter. Further,
we saw a strong volume ramp of our 800G products, which more than doubled sequentially,” said Dr. Thompson Lin, AOI’s Founder,
President and Chief Executive Officer. “Strong demand for high-speed optics alongside high-volume adoption of our 1.8 GHz CATV products
generated powerful results during the quarter. We continue to see robust customer engagement around our 800G transceivers and 1.6 Tb products,
and we forecast that demand will continue to outpace our production capacity through mid-2027. We continue to believe the fundamental
drivers of long-term demand for our business remain robust and we are uniquely positioned as a key supplier to the AI, cloud infrastructure,
and CATV markets.”

 

“We’re pleased to deliver second quarter results that were
in line with or better than our expectations,” said Dr. Stefan Murry, AOI’s Chief Financial Officer and Chief Strategy Officer.
“During Q2, we continued to make solid progress on our production capacity ramp, particularly for our 800G and 1.6Tb products. We
have a total manufacturing capacity approaching 200,000 units per month and continue to expect by the end of this year that we will be
capable of producing around 650,000 pieces of 800G and 1.6 Tb products per month. We’re working hard to expand our capacity, and
we continue to anticipate steady sequential revenue growth this year.”

 

Second Quarter 2026 Financial Summary

 

·GAAP revenue was $191.9 million, compared with $103.0 million in the second
quarter of 2025 and $151.1 million in the first quarter of 2026.

   

·GAAP gross margin was 27.7%, compared with 30.3% in the second quarter of
2025 and 29.1% in the first quarter of 2026. Non-GAAP gross margin was 29.8%, compared with 30.4% in the second quarter of 2025 and 29.2%
in the first quarter of 2026.

   

·GAAP net loss was $22.8 million, or $0.28 per basic share, compared with
net loss of $9.1 million, or $0.16 per basic share in the second quarter of 2025, and a net loss of $14.3 million, or $0.19 per basic
share in the first quarter of 2026.

   

·Non-GAAP net income was $5.5 million, or $0.06 per diluted share, compared
with non-GAAP net loss of $8.8 million, or $0.16 per basic share in the second quarter of 2025, and a non-GAAP net loss of $4.9 million,
or $0.07 per basic share in the first quarter of 2026. 

 

A reconciliation between all GAAP and non-GAAP information referenced
above is contained in the tables below. Please also refer to “Non-GAAP Financial Measures” below for a description of these
non-GAAP financial measures.

 

 

 

  1 

  

 

 

Third Quarter 2026 Business Outlook (+)

 

For third quarter of 2026, the company currently expects:

 

·Revenue in the range of $255 million to $290 million.

·Non-GAAP gross margin in the range of 29% to 30.5%.

·Non-GAAP net income in the range of $10.1 million to $24.0 million, and non-GAAP
income per share in the range of $0.11 to $0.26 using approximately 92.8 million shares. 

 

(+) Please refer to the note below on forward-looking
statements and the risks involved with such statements as well as the note on non-GAAP financial measures.

 

Conference Call Information

 

The company will host a conference call and webcast for analysts and
investors today, August 6, 2026 to discuss its second quarter 2026 financial results and outlook for its third quarter 2026 at 4:30 p.m.
Eastern time / 3:30 p.m. Central time. This call will be open to the public, and investors may access the call by dialing 844-890-1794
(domestic) or 412-717-9586 (international). A live audio webcast of the conference call along with supplemental financial information
will also be accessible on 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 855-669-9658 (domestic) or 412-317-0088 (international)
and entering passcode 6704856.

 

Forward-Looking Information

 

This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such
as "believe," "may," "estimate," "continue," "anticipate," "intend," "should,"
"could," "would," "target," "seek," "aim," "predicts," "think,"
"objectives," "optimistic," "new," "goal," “priorities,” "strategy," "potential,"
"is likely," "will," "expect," “momentum,” "plan" "project," "permit,"
“positions” or by other similar expressions that convey uncertainty of future events or outcomes. These statements include
management’s beliefs and expectations related to our outlook for the third quarter of 2026, the remainder of the year, and the first
half of 2027. Such forward-looking statements reflect the views of management at the time such statements are made. These forward-looking
statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the company's actual results
to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include but are not limited
to: reduction in the size or quantity of customer orders; change in demand for the company's products due to industry conditions; changes
in manufacturing operations; volatility in manufacturing costs; delays in shipments of products; disruptions in the supply chain; change
in the rate of design wins or the rate of customer acceptance of new products; the company's reliance on a small number of customers for
a substantial portion of its revenues; potential pricing pressure; a decline in demand for our customers' products or their rate of deployment
of their products; general conditions in the internet datacenter, cable television (CATV) broadband, telecom, or fiber-to-the-home (FTTH)
markets; changes in the world economy (particularly in the United States and China); changes in the regulation and taxation of international
trade, including the imposition of tariffs; changes in currency exchange rates; the negative effects of seasonality; and other risks and
uncertainties described more fully in the company's documents filed with or furnished to the Securities and Exchange Commission, including
our Annual Report on Form 10-K for the year ended December 31, 2025 and our Quarterly report on Form
10-Q for the quarter ended June 30, 2026. More information about these and other risks that may impact the company's business are
set forth in the "Risk Factors" section of the company's quarterly and annual reports on file with the Securities and Exchange
Commission. You should not rely on forward-looking statements as predictions of future events. All forward-looking statements in this
press release are based upon information available to us as of the date hereof, and qualified in their entirety by this cautionary statement.
Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this press release
to conform these statements to actual results or to changes in the company's expectations.

 

 

 

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Non-GAAP Financial Measures

 

We provide non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP
earnings (loss) per share, and non-GAAP Adjusted EBITDA to eliminate the impact of items that we do not consider indicative of our overall
operating performance. To arrive at our non-GAAP gross margin, we exclude stock-based compensation and related expenses, expenses associated
with discontinued products, and non-recurring (income) expenses, if any, from our GAAP gross margin. To arrive at our non-GAAP net income
(loss), we exclude all amortization of intangible assets, stock-based compensation expense, non-recurring expenses, unrealized foreign
exchange loss (gain), losses from the disposal of idle assets, if any, and non-GAAP tax benefit (expenses) from our GAAP net income (loss).
Included in our non-recurring expenses in Q2 2026 and Q2 2025 are employee severance expenses
(if any) and legal expenses associated with litigation and certain legal and advisory expenses associated with purchase termination or
patent protection. In computing our non-GAAP income tax benefit (expense), we have applied an estimate of our annual effective income
tax rate and applied it to our net income before income taxes. Our non-GAAP Adjusted EBITDA is calculated by excluding depreciation expense,
non-GAAP tax benefit (expense), and interest (income) expense, as well as the items excluded from non-GAAP net income (loss), from our
GAAP net income (loss). Our non-GAAP diluted net earnings (loss) per share is calculated by dividing our non-GAAP net gain (loss) by the
fully diluted share count (for periods in which non-GAAP net income is positive) or basic share count (for periods in which our non-GAAP
net income is negative).

 

We believe that our non-GAAP measures are useful to investors in evaluating
our operating performance for the following reasons:

 

•We
believe that elimination of items such as amortization of intangible assets, stock-based compensation expense, non-recurring revenue
and expenses, losses from the disposal of idle assets, unrealized foreign exchange gain or loss, and depreciation on certain equipment
undergoing reconfiguration is appropriate because treatment of these items may vary for reasons unrelated to our overall operating performance;

•We
believe that elimination of expenses associated with discontinued products, including depreciation and inventory obsolescence is appropriate
because these expenses are not indicative of our ongoing operations;

•We
believe that estimating non-GAAP income taxes allows comparison with prior periods and provides additional information regarding the
generation of potential future deferred tax assets;

•We
believe that non-GAAP measures provide better comparability with our past financial performance, period-to-period results and with our
peer companies, many of which also use similar non-GAAP financial measures; and

•We
anticipate that investors and securities analysts will utilize non-GAAP measures as a supplement to GAAP measures to evaluate our overall
operating performance.

 

A reconciliation of our GAAP net income (loss), GAAP total gross profit,
GAAP earnings (loss), and GAAP earnings (loss) per share for Q2 2026 to our non-GAAP net income (loss), non-GAAP total gross profit, Adjusted
EBITDA, and earnings (loss) per share, respectively, is provided below, together with corresponding reconciliations for Q2 2025.

 

Non-GAAP measures should not be considered as an alternative to gross
profit, net income (loss), earnings (loss) per share, or any other measure of financial performance calculated and presented in accordance
with GAAP. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations
may not calculate such other non-GAAP measures in the same manner. We have not reconciled the non-GAAP measures included in our guidance
to the appropriate GAAP financial measures because the GAAP measures are not readily determinable on a forward-looking basis. GAAP measures
that impact our non-GAAP financial measures may include stock-based compensation expense, non-recurring expenses, amortization of intangible
assets, unrealized exchange loss (gain), asset impairment charges, loss (gain) from disposal of idle assets, and changes in the fair value
of our convertible notes. These GAAP measures cannot be reasonably predicted and may directly impact our non-GAAP gross margin, our non-GAAP
net income and our non-GAAP fully-diluted earnings per share, although changes with respect to certain of these measures may offset other
changes. In addition, certain of these measures are out of our control. Accordingly, a reconciliation of the non-GAAP financial measure
guidance to the corresponding GAAP measures is not available without unreasonable effort.

 

 

 

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About Applied Optoelectronics

 

Applied Optoelectronics,
Inc. (AOI) is a leading developer and manufacturer of advanced optical and HFC networking products that are the building blocks for AI
datacenters, CATV and broadband fiber access networks around the world. AOI supplies this critical infrastructure to tier-one customers
across cloud computing, CATV broadband, telecom, and FTTH markets. The company has R&D facilities in Atlanta, GA, and engineering
and manufacturing facilities at its corporate headquarters in Sugar Land, TX, as well as in Taipei, Taiwan and Ningbo, China. For
additional information, visit www.ao-inc.com.

 

# # #

 

Investor Relations Contacts:

 

The Blueshirt Group, Investor Relations

Lindsay Savarese

+1-212-331-8417

[email protected]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Applied Optoelectronics, Inc.

Preliminary Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 
   
 June 30, 2026  
 December 31, 2025 

 
 ASSETS 
     
    

 
 CURRENT ASSETS 
     
    

 
 Cash, Cash Equivalents and Restricted Cash 
 $508,758  
 $216,035 

 
 Accounts Receivable, Net 
  314,009  
  244,404 

 
 Inventories 
  278,791  
  183,105 

 
 Prepaid Expenses and Other Current Assets 
  88,316  
  32,183 

 
 Total Current Assets 
  1,189,874  
  675,727 

 
   
     
    

 
 Property, Plant And Equipment, Net 
  697,086  
  376,050 

 
 Land Use Rights, Net 
  4,917  
  4,825 

 
 Operating Right of Use Asset 
  75,168  
  49,697 

 
 Intangible Assets, Net 
  3,633  
  3,623 

 
 Other Assets 
  330,514  
  58,501 

 
 TOTAL ASSETS 
 $2,301,192  
 $1,168,423 

 
   
     
    

 
 LIABILITIES AND STOCKHOLDERS' EQUITY 
     
    

 
 CURRENT LIABILITIES 
     
    

 
 Accounts Payable 
 $286,088  
 $143,932 

 
 Bank Acceptance Payable 
  33,940  
  33,363 

 
 Accrued Expenses 
  46,939  
  42,491 

 
 Current Lease Liability-Operating 
  4,223  
  3,522 

 
 Current Portion of Notes Payable and Long Term Debt 
  57,258  
  33,975 

 
 Total Current Liabilities 
  428,448  
  257,283 

 
 Convertible Senior Notes 
  129,142  
  129,829 

 
 Other Long-Term Liabilities 
  75,577  
  47,393 

 
 TOTAL LIABILITIES 
  633,167  
  434,505 

 
   
     
    

 
 STOCKHOLDERS' EQUITY 
     
    

 
 Common Stock 
  84  
  75 

 
 Additional Paid-in Capital 
  2,192,682  
  1,224,538 

 
 Cumulative Translation Adjustment 
  2,399  
  (617)

 
 Retained Earnings 
  (527,140) 
  (490,078)

 
 TOTAL STOCKHOLDERS' EQUITY 
  1,668,025  
  733,918 

 
   
     
    

 
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 
 $2,301,192  
 $1,168,423 

 

 

 

 

  5 

  

 

 

Applied Optoelectronics, Inc.

Preliminary Condensed Consolidated Statements of Operations

(In thousands)

(Unaudited)

 

 

 
   
 Three Months Ended June 30,  
 Six Months Ended June 30, 

 
   
 2026  
 2025  
 2026  
 2025 

 
 Revenue 
     
     
     
    

 
 CATV 
 $80,578  
 $56,019  
 $147,419  
 $120,520 

 
 Datacenter 
  107,662  
  44,791  
  189,066  
  76,841 

 
 Telecom 
  3,411  
  1,940  
  5,971  
  4,876 

 
 Other 
  271  
  202  
  610  
  574 

 
 Total Revenue 
  191,922  
  102,952  
  343,066  
  202,811 

 
   
     
     
     
    

 
 Total Cost of Goods Sold 
  138,715  
  71,790  
  245,943  
  141,105 

 
   
     
     
     
    

 
 Total Gross Profit 
  53,207  
  31,162  
  97,123  
  61,706 

 
   
     
     
     
    

 
 Operating Expenses: 
     
     
     
    

 
 Research and Development 
  34,871  
  20,612  
  60,527  
  38,422 

 
 Sales and Marketing 
  11,490  
  8,135  
  17,837  
  13,492 

 
 General and Administrative 
  31,573  
  18,391  
  56,477  
  34,706 

 
 Total Operating Expenses 
  77,934  
  47,138  
  134,841  
  86,620 

 
   
     
     
     
    

 
 Operating Loss 
  (24,727) 
  (15,976) 
  (37,718) 
  (24,914)

 
   
     
     
     
    

 
 Other Income (Expense): 
     
     
     
    

 
 Interest Income 
  3,248  
  286  
  4,985  
  511 

 
 Interest Expense 
  (927) 
  (818) 
  (1,790) 
  (1,752)

 
 Other Income (Expense), net 
  914  
  7,410  
  (201) 
  7,885 

 
 Total Other Income (Expense): 
  3,235  
  6,878  
  2,994  
  6,644 

 
   
     
     
     
    

 
 Net loss before Income Taxes 
  (21,492) 
  (9,098) 
  (34,724) 
  (18,270)

 
 Income Tax Expense 
  (1,289) 
  –  
  (2,338) 
  – 

 
 Net loss 
 $(22,781) 
 $(9,098) 
 $(37,062) 
 $(18,270)

 
   
     
     
     
    

 
 Net loss per share attributable to common stockholders 
     
     
     
    

 
 basic 
 $(0.28) 
 $(0.16) 
 $(0.47) 
 $(0.34)

 
 diluted 
 $(0.28) 
 $(0.16) 
 $(0.47) 
 $(0.34)

 
   
     
     
     
    

 
 Weighted-average shares used to compute net loss per share attributable to common stockholders 
     
     
     
    

 
 basic 
  81,568  
  56,772  
  78,789  
  53,426 

 
 diluted 
  81,568  
  56,772  
  78,789  
  53,426 

 

 

 

 

  6 

  

 

 

Applied Optoelectronics, Inc.

Reconciliation of Statements of Operations under GAAP and Non-GAAP

(In thousands)

(Unaudited)

 

 

 
   
 Three Months Ended June 30,  
 Six Months Ended June 30, 

 
   
 2026  
 2025  
 2026  
 2025 

 
 GAAP total gross profit (a) 
 $53,207  
 $31,162  
 $97,123  
 $61,706 

 
 Share-based compensation expense 
  170  
  94  
  326  
  177 

 
 Non-recurring expense 
  282  
  41  
  298  
  41 

 
 Expenses associated with discontinued products 
  3,594  
  –  
  3,594  
  – 

 
 Non-GAAP total gross profit (a) 
 $57,253  
 $31,297  
 $101,341  
 $61,924 

 
   
     
     
     
    

 
 GAAP net loss 
 $(22,781) 
 $(9,098) 
 $(37,062) 
 $(18,270)

 
 Share-based compensation expense 
  4,863  
  3,164  
  9,254  
  5,726 

 
 Expenses associated with discontinued products 
  3,594  
  –  
  3,594  
  – 

 
 Non-cash expenses associated with discontinued products 
  1,102  
  1,073  
  2,017  
  2,118 

 
 Amortization of intangible assets 
  123  
  110  
  244  
  218 

 
 Non-recurring (income) expense 
  4,744  
  862  
  5,021  
  1,255 

 
 Unrealized exchange loss (gain) 
  (432) 
  (5,278) 
  745  
  (5,061)

 
 Tax (benefit) expense related to the above 
  14,262  
  337  
  16,722  
  4,325 

 
 Non-GAAP net Gain (loss) 
 $5,475  
 $(8,830) 
 $535  
 $(9,689)

 
   
     
     
     
    

 
 GAAP net loss 
 $(22,781) 
 $(9,098) 
 $(37,062) 
 $(18,270)

 
 Share-based compensation expense 
  4,863  
  3,164  
  9,254  
  5,726 

 
 Expenses associated with discontinued products 
  3,594  
  –  
  3,594  
  – 

 
 Non-cash expenses associated with discontinued products 
  1,102  
  1,073  
  2,017  
  2,118 

 
 Amortization of intangible assets 
  123  
  110  
  244  
  218 

 
 Non-recurring expense (income) 
  4,744  
  862  
  5,021  
  1,255 

 
 Unrealized exchange loss (gain) 
  (432) 
  (5,278) 
  745  
  (5,061)

 
 Depreciation expense 
  9,276  
  5,217  
  17,467  
  9,790 

 
 Interest (income) expense, net 
  (2,321) 
  532  
  (3,195) 
  1,241 

 
 Income tax expenses (credit) 
  1,289  
  –  
  2,338  
  – 

 
 Adjusted EBITDA 
 $(543) 
 $(3,418) 
 $423  
 $(2,983)

 
   
     
     
     
    

 
 GAAP diluted net loss per share 
 $(0.28) 
 $(0.16) 
 $(0.47) 
 $(0.34)

 
 Share-based compensation expense 
  0.06  
  0.06  
  0.11  
  0.11 

 
 Expenses associated with discontinued products 
  0.04  
  –  
  0.04  
  – 

 
 Non-cash expenses associated with discontinued products 
  0.01  
  0.02  
  0.02  
  0.04 

 
 Non-recurring (income) expense 
  0.05  
  0.01  
  0.06  
  0.02 

 
 Unrealized exchange loss (gain) 
  –  
  (0.10) 
  0.01  
  (0.09)

 
 Non-GAAP tax benefit 
  0.18  
  0.01  
  0.24  
  0.08 

 
 Non-GAAP diluted net earnings (loss) per share 
 $0.06  
 $(0.16) 
 $0.01  
 $(0.18)

 
   
     
     
     
    

 
 Shares used to compute diluted loss per share 
  81,568  
  56,772  
  78,789  
  53,426 

 
 Shares used to compute diluted earnings per share 
  88,152  
  62,037  
  85,373  
  58,690 

 

 

(a) Provided for the purpose of calculating gross profit as a percentage of revenue (gross margin).

 

 

  7