Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 130

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 years. While the new customer interaction is not material within the quarter, we believe that both this new customer interaction and much of the growth in our existing data center business is related to efforts by these customers to increase processing capacity within their data centers, largely to accommodate applications enabled by generative artificial intelligence ("AI").

For the second quarter of 2025, CATV revenue increased $50.2 million, or 862.9%, compared to the second quarter of 2024. For the six months ended June 30, 2025 and 2024, CATV increased $106.0 million, or 728.1%. The increases were due to the recovery in market demand for our products, which is being driven by the beginning of a major network upgrade project by a major North American MSO customer. 

For the three months ended June 30, 2025 and 2024, our top ten customers represented 98% and 94% of our revenue, respectively. For the six months ended June 30, 2025 and 2024, our top ten customers represented 97% and 93% of our revenue, respectively. We believe that diversifying our customer base is critical for our future success, since reliance on a small number of key customers makes our ability to forecast future results dependent upon the accuracy of the forecasts we receive from those key customers. We continue to prioritize new customer acquisition and growth of diverse revenue streams.

Cost of goods sold and gross margin

​

      Three months ended June 30, 

      ​ 

      ​ 

      ​ 
      
      2025 

      2024 

      Change 

      ​ 

      % of 

      % of 

      ​ 

      ​ 
      
      Amount 

      Revenue 

      Amount 

      Revenue 

      Amount 

      % 

      ​ 
      
      (in thousands, except percentages) 

      Cost of goods sold 
      
     $
     71,790

     69.7
     %
      
     $
     33,708

     77.9
     %
      
     $
     38,082

     113.0
     %

      Gross profit 

     31,162

     30.3
     %

     9,562

     22.1
     %

     21,600

     225.9
     %

      Six months ended June 30,