AOI Sales Up 127%, Gross Margin Stuck at 28%: Rapid Earnings Reaction

Applied Optoelectronics reported 127% revenue growth to $269.9M driven by datacenter demand, with datacenter sales tripling year-over-year. However, gross margin remained flat at 28%, operating losses persisted, and GAAP net income relied on $10.1M in other income rather than core operations. The company guided for 49% revenue growth next quarter but delayed US capacity expansion due to electrical power and construction issues.