Applied Optoelectronics (AAOI) expects Q1 revenue in the range of $30 to $30.3 million, below its prior guidance of $35 to $36.5 million and south of the analyst consensus of $35.5 million on Capital IQ.
“We are very disappointed to report preliminary revenue results below our expectations. Our first quarter revenue was impacted by continued supply constraints for an externally sourced optical sub-assembly for a 40 Gbps data center transceiver,” said Dr. Thompson Lin, Applied Optoelectronics, Inc. (AOI) founder and CEO. “While our supplier did increase production for this sub-assembly in the quarter, they remained behind schedule and delivered only slightly more than 50% of the quantity they committed to earlier in the quarter.
“As we said in February, in order to help alleviate supply shortages we have been preparing to ramp internal production of this component. We made good progress on this front in March and are on schedule to begin internal production of this supply constrained component in the second quarter.”
For Q2, the company is forecasting revenue above $42 million, based on sizeable backlog. The Street consensus is $37.6 million.
