Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 137

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 137
---
 %
      
     $
     155,622

     438.4
     %

      Data Center 

     120,775

     37.5
     %

     104,283

     69.9
     %

     16,492

     15.8
     %

      Telecom 

     8,618

     2.7
     %

     7,445

     5.0
     %

     1,173

     15.8
     %

      Other 

     925

     0.3
     %

     1,865

     1.3
     %

     (940
     )

     (50.4
     )%

      Total Revenue 
      
     $
     321,441

     100.0
     %
      
     $
     149,094

     100.0
     %
      
     $
     172,347

     115.6
     %

The changes in revenue during both the three months and the nine months ended September 30, 2025 and 2024 were primarily due to increased demand from customers. 

               We continue to see increased orders for our 100G and 400G data center products from several large customers. Based on forecasts from our customers, we expect increased demand for these products through the end of 2025. We entered into a supply agreement with Microsoft to design certain data center goods and to build a supply chain to manufacture, assemble, sell and ship the goods to them or an authorized purchasing entity. The initial term of the agreement is five years with automatic renewal unless terminated earlier. We continue to expect revenue from this contract to increase in 2025 compared to 2024.

In addition to our existing data center customers, we have also begun to receive orders from a hyperscale data center customer from which we have not received significant orders in several 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 third quarter of 2025, CATV revenue increased $49.7 million, or 237.1%, compared to the third quarter of 2024. For the