Applied Optoelectronics Announces Preliminary First Quarter 2016 Results
"We expect first quarter revenue to be within our guided range, representing at least 65% year-over-year growth, however our bottom line results were impacted by higher than expected cost of goods sold and research and development costs. These additional costs were incurred due to lower than anticipated yields on certain longer-reach 40G light engines and redesign activities associated with manufacturing cost reduction efforts," said Dr.
Total revenue in the first quarter 2016 is expected to be between
The company expects to report GAAP and non-GAAP gross margin in the first quarter 2016 in the range of 28.0% to 28.5%, compared with prior non-GAAP guidance of 31.0% to 32.5%.
The company expects to report a GAAP net loss in the first quarter 2016 between
These are preliminary results and remain subject to the completion of the company's customary quarterly close and review procedures. Material adjustments may arise between the date of this press release and the dates on which
First Quarter 2016 Conference Call
The company will host a conference call and webcast for analysts and investors to discuss its first quarter results and outlook for its second quarter of 2016 at
A live webcast of the conference call and supplemental financials will be accessible from 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 Following the webcast, an archived version will be available on the website for one year.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 two hours after the call and will run for five business days and may be accessed by dialing (412) 317-0088 and entering passcode 10083549.
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 or FTTH markets; changes in the world economy (particularly in
Non-GAAP Financial Measures
We provide non-GAAP gross margin, non-GAAP net income (loss), non-GAAP earnings per share, and other non-GAAP measures 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 Q1 of 2016 are items related to the relocation of our
- We believe that elimination of items such as stock-based compensation expense, non-recurring expenses, amortization and tax 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 in conjunction with comparable 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.
|Reconciliation of GAAP and Non-GAAP net loss
|(In thousands, except per share data)|
|Three months ended
|Low end of range||High end of range|
|GAAP net loss||$||(1,800||)||$||(1,500||)|
|Amortization of intangible assets||110||110|
|Share-based compensation expense||808||808|
|Non recurring expense||173||173|
|Unrealized exchange loss||(335||)||(335||)|
|Non-GAAP net loss||$||(1,044||)||$||(744||)|
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