“Although first quarter revenue was below our initial expectations as a result of the previously announced 40G supply shortages, we delivered 22 percent year over year growth and maintained gross margin above 33 percent,” said Dr. Thompson Lin, Applied Optoelectronics Inc. (AOI) founder and CEO. “With steady shipments of 40G components from our external supplier and with internal production of 40G light engines ramping according to plan, we are working through our backlog and increasing our 40G transceiver shipments to our customers.”
FIRST QUARTER 2015 FINANCIAL SUMMARY
Total revenue grew to $30.2 million, up 22% compared with $24.9 million in the first quarter 2014 and represents a 17% decrease compared with $36.4 million in the fourth quarter 2014.
GAAP gross margin was 33.2%, compared with 34.8% in the first quarter 2014 and 33.7% in the fourth quarter 2014. Non-GAAP gross margin was 33.3%, compared with 34.9% in the first quarter 2014 and 36.0% in the fourth quarter 2014.
GAAP net loss was $0.7 million or a $0.05 loss per basic share, compared with net income of $0.1 million or $0.01 per diluted share in the first quarter 2014 and net income of $0.7 million or $0.05 per diluted share in the fourth quarter 2014.
Non-GAAP net income was $0.3 million or $0.02 per diluted share, compared with a non-GAAP net income of $0.8 million or $0.06 per diluted share in the first quarter 2014 and non-GAAP net income of $4.0 million or $0.27 per diluted share in the fourth quarter 2014.
On March 31, 2015, cash, cash equivalents, short-term investments and restricted cash totaled $28.1 million, a decrease from the December 31, 2014 balance of $40.9 million. As of March 31, 2015, the company had $32.1 million of unused borrowing capacity on its various credit facilities.
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.
SECOND QUARTER 2015 BUSINESS OUTLOOK(+)
For the second quarter of 2015, the company currently expects:
Revenue in the range of $43.0 million to $45.0 million
Non-GAAP gross margin in the range of 34.0% to 35.0%
Non-GAAP net income in the range of $3.8 million to $4.5 million, and non-GAAP fully diluted earnings per share in the range of $0.25 to $0.30 using approximately 15.3 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.