Applied Optoelectronics slashes Q3 revenue guidance from $82-92m to $55-58m

Applied Optoelectronics Inc (AOI) of Sugar Land, TX, USA – a designer and manufacturer of optical components, modules and equipment for fiber access networks in the Internet data-center, cable TV broadband, fiber-to-the-home (FTTH) and telecom markets – has lowered its third-quarter 2018 revenue guidance from $82-92m (given on 7 August) to $55-58m.

“During the third quarter, we identified an issue with a small percentage of 25G lasers within a specific customer environment,” says founder, president & CEO Dr Thompson Lin. “Consistent with AOI’s commitment to supreme product quality and customer support, we mutually agreed with the customer to temporarily suspend shipments of certain transceivers utilizing these lasers while we worked to gain a deeper understanding of the scope of the issue and implement a solution. We have since determined that less than one percent of these lasers were subject to this issue; we have enacted a solution and with the agreement of the customer, resumed shipments,” he adds.

“Our customers appreciate our willingness to thoroughly resolve any issues, even at the expense of a delay in our revenue, and we believe that we continue to have strong relationships with our customers,” Lin believes. “Outside of the temporary delay in shipments that impacted our third quarter revenue, sales and shipments as well as the pricing environment were consistent with our prior expectations.”

AOI will report detailed third-quarter financial results on 7 November.

Tags: Optical transceivers

Visit: www.ao-inc.com