Applied Optoelectronics Inc (NASDAQ: AAOI) got pummeled on Friday markets, after the company offered a warning related to its upcoming third-quarter results Thursday afternoon.
Applied Optoelectronics reduced its third-quarter sales guidance from a prior $107 million-$115 million to a new range of $88 million-$89 million. Earnings per share are expected to come in between $1.04 and $1.09, well below the previous guidance figures in the range of $1.30-$1.43.
Said CEO Thompson Lin, “our preliminary results for the third quarter fell short of prior estimates and were negatively impacted by lower than expected sales to one of our large datacenter customers.
"Despite this shortfall, we maintained a strong gross margin profile in the quarter, and continued to experience solid demand with our other top datacenter customers."
The actual third-quarter figures are due to come out November 7.
Applied Optoelectronics, originating out of Sugarland, Texas, is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, fiber-to-the-home and telecom markets.
AOI supplies optical networking lasers, components and equipment to tier-1 customers in all four of these markets. In addition to its Sugarland corporate headquarters, wafer fab and advanced engineering and production facilities, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China.
AAOI shares approached the closing bell Friday down sharply, $12.04, or 20.5%, to $46.80, within a 52-week trading range of $18.85 to $103.41.
