Applied Optoelectronics Cuts Q4 Revenue Outlook

(RTTNews) - Applied Optoelectronics, Inc. (AAOI) said Tuesday that it now expects fourth quarter 2014 revenue to be in the range of $36.0 million to $36.4 million, compared to its prior outlook of $39.5 million to $41.5 million.

Analysts polled by Thomson Reuters currently expect the company to post revenue of $40.37 million for the fourth quarter.

The company also said it currently expects its fourth quarter adjusted gross margin to exceed its prior guidance of 33.5% to 34.5%.

Dr. Thompson Lin, Applied Optoelectronics founder and CEO, said, "Customer demand remained very strong in the fourth quarter, generating a book-to-bill ratio over 1.7 for the period. However, we identified a quality issue with certain optical receiver sub-assembly components sourced from an external supplier and therefore we were unable to ramp production levels for our new 40G data center transceivers as planned, and this temporary supply problem impacted our revenue results for the quarter. Our team identified this issue quickly during production and is working closely with the supplier to increase yields of this newly developed technology."