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Draft:Applied Optoelectronics

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  • Comment: Removed press releases. Patricejew (talk) 15:06, 16 September 2026 (UTC)
  • Comment: Press releases are not reliable independent sources. Theroadislong (talk) 14:49, 16 September 2026 (UTC)
Applied Optoelectronics, Inc.
TypePublic
Industry
FoundedFebruary 1997; 29 years ago (1997-02) in Houston, Texas, U.S.
FounderChih-Hsiang (Thompson) Lin
Headquarters
Sugar Land, Texas
,
U.S.
Key peopleChih-Hsiang (Thompson) Lin (chairman, president and CEO)
Products
  • Optical transceivers
  • Lasers and laser components
  • Cable television (HFC) networking equipment
RevenueIncrease US$455.7 million (2025)
Decrease US$-38.2 million (2025)
Number of employees
4,691[1] (2025)
Websiteao-inc.com

Applied Optoelectronics, Inc. (AOI) is an American company that designs and manufactures fiber-optic networking products and optical semiconductor components. It is headquartered in Sugar Land, Texas, and its common stock trades on the NASDAQ under the symbol AAOI.[2] The company was founded in 1997 by Chih-Hsiang (Thompson) Lin and completed its initial public offering in 2013.[3]

The company's products include optical transceivers for data centers, equipment for cable television (CATV) broadband networks, and lasers and components for telecommunications and fiber-to-the-home (FTTH) applications.[4] As of December 31, 2025, the company had 4,691 employees.[1]

History

[edit]

Applied Optoelectronics was incorporated in Texas on February 28, 1997, by Chih-Hsiang (Thompson) Lin, who had worked as a research scientist and research associate professor at the University of Houston.[3] The company reincorporated in Delaware in March 2013.[4]

In 2000, AOI opened its headquarters and manufacturing facility in Sugar Land, Texas.[5] Its early operations focused on semiconductor lasers and optical components.[3]

AOI began trading on the Nasdaq on September 26, 2013, under the symbol AAOI.[2] Its initial public offering was priced at $10 per share, below the proposed range of $13 to $15. The company sold 3.6 million shares and received approximately $33.5 million in net proceeds.[6][7][8]

In 2016, the company's two largest customers accounted for approximately three-quarters of its revenue, while its ten largest customers accounted for more than 95%.[9]

In August 2017, AOI disclosed a slowdown in demand from a large data center customer, after which its stock price declined.[10] The company subsequently disclosed quality issues involving certain lasers and transceivers. Shareholders filed securities class-action lawsuits against AOI and two of its officers.[11] One consolidated action was settled for $15.5 million, with the settlement funded by the company's directors' and officers' insurance.[11]

In December 2022, AOI entered a supply agreement with a technology customer to manufacture certain lasers, and in June 2023 it signed a further agreement covering design and assembly services.[12]

In March 2025, AOI entered into a transaction agreement with a customer that included a warrant to purchase up to 7,945,399 shares at an exercise price of $23.6954 per share, exercisable until March 13, 2035.[13]

Products

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Optical transceivers

[edit]

AOI manufactures optical transceivers for data center and networking applications. Its products include transceivers with data rates ranging from 40G to 1.6T and use form factors including SFP, QSFP, QSFP-DD and OSFP.[14]

In the first quarter of 2026, the company reported its first volume shipment of 800G products.[15] In March 2026, AOI announced a volume order for 1.6T data center transceivers.[16]

Semiconductor components

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AOI manufactures semiconductor laser chips and optical components used in its products. It fabricates lasers using a combination of molecular beam epitaxy (MBE) and metal-organic chemical vapor deposition (MOCVD), and supplies lasers and laser subassemblies to other equipment and transceiver manufacturers.[4]

Cable broadband

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AOI supplies equipment for hybrid fiber-coaxial cable television networks. In September 2022 it introduced HFC products under the Quantum Bandwidth brand, including amplifiers and remote-management software.[17][18]

In July 2025 Charter Communications certified AOI's 1.8 GHz amplifiers and QuantumLink software for deployment in its network.[19][20] In 2026 AOI announced that it was supporting Mediacom's with Quantum Bandwidth amplifiers and software for a DOCSIS 4.0 network upgrade.[21]

Manufacturing and operations

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AOI has manufacturing and research-and-development facilities in the United States, Taiwan and China. Its Sugar Land, Texas headquarters houses laser and laser-component fabrication, data center transceiver production, and research and development. Through subsidiaries, the company operates facilities in Taipei, Taiwan and Ningbo, China, and maintains a research-and-development facility in Atlanta, Georgia.[22]

AOI is developing a 210,000-square-foot manufacturing facility adjacent to its Sugar Land headquarters. The Office of the Governor of Texas said the project represented more than $279 million in capital investment and was expected to create about 500 jobs.[23] In April 2026 the company was awarded a $20,852,518 grant from the Texas Semiconductor Innovation Fund to support the expansion.[24]

In 2026, AOI added three buildings between Pearland and Missouri City, Texas, to its Houston-area operations and reported plans to increase its combined 800G and 1.6T transceiver production capacity.[25][26]

Finances

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AOI reported 2025 revenue of $455.7 million, compared with $249.4 million in 2024. Its 2025 GAAP gross margin was 30%, and its net loss was $38.2 million, compared with a $186.7 million net loss in 2024.[4][27]

For the first quarter of 2026, AOI reported revenue of $151.1 million and a GAAP net loss of $14.3 million, and it completed a public equity offering that raised approximately $382.4 million.[28][29]

References

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  1. 1 2 "Applied Optoelectronics: Number of Employees 2012-2025". MacroTrends. Retrieved 2026-08-16. 4,691 employees as of December 31, 2025, citing AOI Form 10-K
  2. 1 2 "Applied Optoelectronics, Inc. Common Stock (AAOI)". Nasdaq. Retrieved 2026-08-16.
  3. 1 2 3 Form DEF 14A (proxy statement) (Report). Applied Optoelectronics, Inc. / SEC. 2023. Retrieved 2026-08-16.
  4. 1 2 3 4 Form 10-K for the fiscal year ended December 31, 2025 (Report). Applied Optoelectronics, Inc. / U.S. Securities and Exchange Commission. Retrieved 2026-08-16.
  5. ↑ "AOI Opens New Manufacturing Facility, Moves Operations". Compound Semiconductor. Retrieved 2026-08-16.
  6. ↑ Dorbian, Iris (2013-09-26). "Applied Optoelectronics sets pricing for IPO". PE Hub. Retrieved 2026-08-16.
  7. ↑ "Applied Optoelectronics shares fall after $36M IPO". www.ksl.com. Retrieved 2026-08-27.
  8. ↑ "Applied Optoelectronics - 10-Q quarterly report FY2013 Q3". companiesmarketcap.com. Retrieved 2026-08-27.
  9. ↑ "Microsoft is a big customer of Hortonworks and Applied Optoelectronics". CNBC. 2017-12-26. Retrieved 2026-08-16.
  10. ↑ "Mad About Your Loss in Applied Optoelectronics (AAOI) Stock? Don't Sue!". Nasdaq. 2017-10-02. Retrieved 2026-08-16.
  11. 1 2 In re Applied Optoelectronics, Inc. Securities Litigation — Stipulation and Agreement of Settlement (S.D. Tex.) (Report). SEC filing / official settlement site. Retrieved 2026-08-16.
  12. ↑ "Applied Optoelectronics (AAOI) enters supply agreement with Microsoft Corporation". StreetInsider. Retrieved 2026-08-16.
  13. ↑ Form 8-K (Amazon transaction agreement and warrant) (Report). Applied Optoelectronics, Inc. / SEC. 2025. Retrieved 2026-08-16.
  14. ↑ "Applied Optoelectronics demonstrating new transceiver product portfolio at OFC". www.semiconductor-today.com. Retrieved 2026-08-27.
  15. ↑ "1AAOI - Applied Optoelectronics Inc". Morningstar. 2026-08-26. Retrieved 2026-08-27.
  16. ↑ "AOI receives first volume order of 1.6T data center transceivers". Light Reading. Retrieved 2026-08-27.
  17. ↑ "Applied Optoelectronics Showcases New Family of HFC Products Under Its 'Quantum Bandwidth' Brand Name". www.gophotonics.com. Retrieved 2026-08-27.
  18. ↑ "AOI adds smarts to cable amps with 'QuantumLink'". Light Reading. Retrieved 2026-08-27.
  19. ↑ "Charter certifies AOI's 1.8 GHz amplifiers for cable upgrades including extended Docsis". Telecompaper. Retrieved 2026-08-27.
  20. ↑ Carroll, Jim (2025-07-22). "AOI Certified by Charter Communications". Converge Digest. Retrieved 2026-08-27.
  21. ↑ "Mediacom advances DOCSIS 4.0 network upgrades with AOI Quantum Bandwidth". Fierce Network. 2026-05-12. Retrieved 2026-08-16.
  22. ↑ "1.8GHz Cable Plant Signal Generator" (PDF). Digicomm. 2019. Retrieved 2026-08-27.
  23. ↑ Taylor, Brittany (2026-04-29). "$20M state grant to fuel semiconductor expansion in Sugar Land, create 500 jobs". KPRC. Retrieved 2026-08-27.
  24. ↑ "Applied Optoelectronics Gets $21M Grant to Help Build $280M Plant in Texas". Industrial Equipment News. 2026-04-30. Retrieved 2026-08-27.
  25. ↑ "Applied Optoelectronics Q1 2026 Earnings Report". Marketbeat.com. Retrieved 2026-08-17.
  26. ↑ "AOI Expands Its Houston-Area Footprint to 900,000 Square Feet to Increase Capacity and Support Future Growth". investors.ao-inc.com. Retrieved 2026-08-17.
  27. ↑ Carroll, Jim (2026-02-26). "AOI Reports Record Q4 2025 Revenue, Expands Datacenter Capacity for 2026". Converge Digest. Retrieved 2026-08-27.
  28. ↑ "Applied Optoelectronics (AAOI) Financials 2026 - Income Statement and Balance Sheet $AAOI". www.marketbeat.com. Retrieved 2026-08-27.
  29. ↑ Form 8-K (First Quarter 2026 results) (Report). Applied Optoelectronics, Inc. / SEC. 2026-05-07. Retrieved 2026-08-16.
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