StockSelector.com
  Research, Select, & Monitor Sunday, July 15, 2018 5:12:39 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Applied Optoelectronics, Inc.$47.78($1.02)(2.09%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Applied Optoelectronics Reports Fourth Quarter and Year 2016 Results
   Thursday, February 23, 2017 4:03:14 PM ET

Applied Optoelectronics, Inc. (AAOI ), a leading provider of fiber-optic network products for the internet datacenter, cable broadband, fiber-to-the-home and telecom markets, today announced financial results for its fourth quarter and year ended Dec. 31, 2016.

"AOI achieved another record year driven by strong demand for our market-leading datacenter products and continued execution by the AOI team. We believe our record performance further demonstrates our growing market share in advanced optics and our team’s ability to generate manufacturing efficiencies that lead to margin improvement," said Dr. Thompson Lin, Applied Optoelectronics, Inc. founder, president and CEO. "Our ability to internally manufacture lasers and light engines provides us with cost-leadership advantages, a faster time to market, and the ability to quickly scale to demand. Looking ahead, as the 100G transition accelerates this year, we see the opportunity to build on our momentum and expand our market leadership."

Fourth Quarter 2016 Financial Summary

-- Total revenue increased to $84.9 million, up 60% compared with $53.0 million in the fourth quarter 2015 and up 21% compared with $70.1 million in the third quarter of 2016.

-- GAAP gross margin increased to 38.0%, up from 29.5% in the fourth quarter 2015 and 33.0% in the third quarter of 2016. Non-GAAP gross margin increased to 38.0%, up from 29.5% in the fourth quarter 2015 and 33.1% in the third quarter of 2016.

-- GAAP net income increased to $14.2 million, or $0.77 per diluted share, compared with net income of $2.7 million, or $0.15 per diluted share in the fourth quarter 2015, and net income of $17.7 million, or $0.97 per diluted share in the third quarter of 2016.

-- Non-GAAP net income increased to $15.5 million, or $0.84 per diluted share, compared with non-GAAP net income of $3.9 million, or $0.22 per diluted share in the fourth quarter 2015, and non-GAAP net income of $7.0 million, or $0.38 per diluted share in the third quarter of 2016.

Year 2016 Financial Summary

-- Total revenue grew to $260.7 million, up 37% compared with $189.9 million in 2015.

-- GAAP gross margin increased to 33.4%, up from 31.8% in 2015. Non-GAAP gross margin increased to 33.4% compared with 31.9% in 2015.

-- GAAP net income increased to $31.2 million, or $1.76 per diluted share, compared with net income of $10.8 million, or $0.65 per diluted share in 2015. Non-GAAP net income increased to $24.6 million, or $1.39 per diluted share, compared with non-GAAP net income of $17.0 million, or $1.03 per diluted share in 2015.

-- On December 31, 2016, cash, cash equivalents, short-term investments and restricted cash totaled $52.0 million, compared with the December 31, 2015 balance of $40.7 million.

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.

First Quarter 2017 Business Outlook

For the first quarter of 2017, the company currently expects:

-- Revenue in the range of $87 million to $91 million.

-- Non-GAAP gross margin in the range of 38% to 40%.

-- Non-GAAP net income in the range of $15.5 million to $17.2 million, and non-GAAP fully diluted earnings per share in the range of $0.80 to $0.88 using approximately 19.5 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 on Feb. 23, 2017 to discuss its fourth quarter and year 2016 results and outlook for its first quarter of 2017 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) 317-6789. 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 (412) 317-0088 and entering passcode 10098914.

Forward-Looking Information

This press release contains forward-looking statements. 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, CATV, FTTH or Telecom markets; changes in the world economy (particularly in the United States and China); 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. 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. 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," "believe," "predicts," "think," "objectives," "optimistic," "new," "goal," "strategy," "potential," "is likely," "will," "expect," "plan" "project," "permit" or by other similar expressions that convey uncertainty of future events or outcomes. 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.

Non-GAAP Financial Measures

We provide non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP earnings per share to eliminate the impact of items that we do not consider indicative of our overall operating performance. To arrive at our non-GAAP gross profit, we exclude stock-based compensation expense and non-recurring expenses, if any, from our GAAP gross profit. To arrive at our non-GAAP income (loss) from operations, we exclude all amortization of intangible assets, stock-based compensation expense and non-recurring expenses, if any, from our GAAP net income (loss) from operations. Included in our non-recurring expenses for the periods from 1Q16 to 4Q16 are certain consulting fees, items related to the relocation of our plant in Texas, realized loss on the maturity of certain foreign currency investments, and a tax benefit arising from the removal of our valuation allowance. Our non-GAAP earnings per share is calculated by dividing our non-GAAP net income by the fully diluted share count. 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 stock-based compensation expense and non-recurring expenses is appropriate because treatment of these items may vary for reasons unrelated to our overall operating performance;

-- 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 to evaluate our overall operating performance.

Non-GAAP measures should not be considered as an alternative to gross profit, income (loss) from operations, net income (loss) 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 were not accessible 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, and loss (gain) from disposal of idle assets. 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.

About Applied Optoelectronics

Applied Optoelectronics, Inc. (AOI) 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 corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China. For additional information, visit www.ao-inc.com.

Applied Optoelectronics, Inc.
Preliminary Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
                                                   December 31, 2016    December 31, 2015
ASSETS
CURRENT ASSETS
Cash, Cash Equivalents and Short term investments  $     52,000       $ 40,679
Accounts Receivable, Net                                 49,766         38,775
Inventories                                              51,817         66,238
Other Receivables                                        1,501          4,121
Prepaid Expenses and Other Current Assets                2,468          4,115
Total Current Assets                                     157,552        153,928
Cash restricted for Construction in Progress             8              -
Property, Plant And Equipment, Net                       144,098        109,699
Land Use Rights, Net                                     778            854
Intangible Assets, Net                                   3,993          3,900
Deferred Income Tax Assets                               11,421         -
Other Assets                                             4,468          5,094
TOTAL ASSETS                                       $     322,318      $ 273,475
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts Payable                                   $     36,375       $ 28,668
Accrued Expenses                                         15,426         11,506
Bank Acceptance Payable                                  307            2,998
Bank Loan-Short Term                                     -              27,316
Current Portion of Long Term Debt                        7,865          3,592
Total Current Liabilities                                59,973         74,080
Notes Payable and Long Term Debt                         34,961         33,997
TOTAL LIABILITIES                                        94,934         108,077
STOCKHOLDERS’ EQUITY
Total Preferred Stock                                    -              -
Common Stock                                             18             17
Additional Paid-in Capital                               265,264        233,336
Cumulative Translation Adjustment                        (885    )      292
Accumulated Deficit                                      (37,013 )      (68,247           )
TOTAL STOCKHOLDERS’ EQUITY                               227,384        165,398
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY         $     322,318      $ 273,475
Applied Optoelectronics, Inc.
Preliminary Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                Three Months Ended                 Twelve Months Ended
                                Dec 31,                            Dec 31,
Revenue                              2016             2015             2016            2015
CATV                            $    13,424      $    11,000       $   43,567      $   53,675
Datacenter                           68,105           38,769           201,314         123,286
FTTH                                 234              87               1,567           2,458
Other                                3,137            3,096            14,265          10,484
Total Revenue                        84,900           52,952           260,713         189,903
Total Cost of Goods Sold             52,662           37,334           173,759         129,450
Total Gross Profit                   32,238           15,618           86,954          60,453
Operating Expenses:
Research and Development             7,208            5,960            31,780          20,852
Sales and Marketing                  1,743            1,633            6,627           6,381
General and Administrative           7,443            5,271            25,527          19,771
Total Operating Expenses             16,394           12,864           63,934          47,004
Operating Income                     15,844           2,754            23,020          13,449
Other Income (Expense):
Interest Income                      41               92               247             328
Interest Expense                     (404   )         (242   )         (1,717  )       (1,018  )
Other Income (Expense)               (12    )         39               70              257
Foreign Exchange Gain (Loss)         (3     )         (130   )         (617    )       (1,848  )
Total Other Income (Expense):        (378   )         (241   )         (2,017  )       (2,281  )
Net Income before Income Taxes       15,466           2,513            21,003          11,168
Income Tax Benefit (Expense)         (1,241 )         166              10,231          (375    )
Net Income                           14,225           2,679            31,234          10,793
Net income per share attributable to common stockholders
basic                           $    0.81        $    0.16         $   1.82        $   0.69
diluted                         $    0.77        $    0.15         $   1.76        $   0.65
Weighted-average shares used to compute
net income per share attributable to
common stockholders
basic                                17,631           16,833           17,202          15,627
diluted                              18,513           17,691           17,713          16,533
Applied Optoelectronics, Inc.
Reconciliation of Statements of Operations under GAAP and Non-GAAP
(In thousands)
(Unaudited)
                                             Three Months Ended      Twelve Months Ended
                                             Dec 31,                 Dec 31,
                                                    2016     2015           2016     2015
GAAP total gross profit                      $      32,238 $ 15,618  $      86,954 $ 60,453
Share-based compensation expense                    51       18             190      70
Non-recurring expense                               0        0              0        45
Non-GAAP income from gross profit                   32,289   15,636         87,144   60,568
GAAP research and development expense               7,208    5,960          31,780   20,852
Share-based compensation expense                    154      65             591      231
Non-GAAP research and development expense           7,054    5,895          31,189   20,621
GAAP sales and marketing expense                    1,743    1,633          6,627    6,381
Share-based compensation expense                    93       55             358      217
Non-GAAP sales and marketing expense                1,650    1,578          6,269    6,164
GAAP general and administrative expense             7,443    5,271          25,527   19,771
Share-based compensation expense                    705      415            2,693    1,602
Amortization expense                                117      106            454      412
Non-recurring expense                               53       235            775      807
Non-GAAP general and administrative expense         6,568    4,515          21,605   16,950
GAAP total operating expense                        16,394   12,864         63,934   47,004
Share-based compensation expense                    952      535            3,642    2,050
Amortization expense                                117      106            454      412
Non-recurring expense                               53       235            775      807
Non-GAAP total operating expense                    15,272   11,988         59,063   43,735
GAAP operating income                               15,844   2,754          23,020   13,449
Share-based compensation expense                    1,003    553            3,832    2,120
Amortization expense                                117      106            454      412
Non-recurring expense                               53       235            775      852
Non-GAAP operating income                           17,017   3,648          28,081   16,833
Applied Optoelectronics, Inc.
Reconciliation of Statements of Operations under GAAP and Non-GAAP
(In thousands)
(Unaudited)
                                            Three Months Ended                Twelve Months Ended
                                            Dec 31,                           Dec 31,
                                                 2016             2015             2016              2015
GAAP other income (loss)                         (378   )         (241  )          (2,017  )         (2,281 )
Loss from disposal of idle assets                37               54               81                54
Unrealized exchange loss (gain)                  46               299              (3,639  )         2,567
Non-recurring expense                            0                0                3,736             153
Non-GAAP other income (loss)                     (295   )         112              (1,839  )         493
GAAP net income                                  14,225           2,679            31,234            10,793
Amortization of intangible assets                117              106              454               412
Share-based compensation expense                 1,003            553              3,832             2,120
Non-recurring charges                            53               235              4,511             1,005
Loss from disposal of idle assets                37               54               81                54
Unrealized exchange loss (gain)                  46               299              (3,639  )         2,567
Non-recurring tax benefit                        0                0                (11,856 )         0
Non-GAAP net income                              15,481           3,926            24,617            16,951
GAAP net income                                  14,225           2,679            31,234            10,793
Amortization of intangible assets                117              106              454               412
Share-based compensation expense                 1,003            553              3,832             2,120
Depreciation expense                             4,146            2,584            13,734            9,012
Non-recurring charges                            53               235              4,511             1,005
Loss from disposal of idle assets                37               54               81                54
Unrealized exchange loss (gain)                  46               299              (3,639  )         2,567
Interest expense, net                            363              150              1,470             690
Tax (benefit) expense related to the above       1,241            (166  )          (10,231 )         375
Adjusted EBITDA                             $    21,231      $    6,494       $    41,446       $    27,028
Investor Relations Contacts:

The Blueshirt Group, Investor Relations
Maria Riley & Chelsea Lish
+1-415-217-7722
ir@ao-inc.com

https://resource.globenewswire.com/Resource/Download/f7e2c663-a037-4ef5-ba36-2a4ff3dd7d03?size=1

<img src="http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzY3MDMzODU=" alt="" width="1" height="1"/>



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.