Company: AAOI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015518
Chunk: 35

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 the three months ended March 31, 2025 and 2024, our top ten customers represented 97% and 92% 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 March 31, 

      ​ 

      ​ 

      ​ 
      
      2025 

      2024 

      Change 

      ​ 

      % of 

      % of 

      ​ 

      ​ 
      
      Amount 

      Revenue 

      Amount 

      Revenue 

      Amount 

      % 

      ​ 
      
      (in thousands, except percentages) 

      Cost of goods sold 
      
     $
     69,315

     69.4
     %
      
     $
     33,082

     81.3
     %
      
     $
     36,233

     109.5
     %

      Gross profit 

     30,544

     30.6
     %

     7,591

     18.7
     %

     22,953

     302.4
     %

       21

Cost of goods sold increased by $36.2 million or 109.5% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in cost of goods sold was due to increased revenue for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Gross profit increased by $23.0 million or 302.4% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase is primarily due to higher sales on our high gross margin products and ongoing efforts to reduce production costs. 

Operating expenses

      Three months ended March 31, 

      ​ 

      ​ 

      ​ 
      
      2025 

      2024 

      Change 

      ​ 
      
      ​ 

      % of 

      ​ 

      % of