Applied Optoelectronics, Inc. (NASDAQ:AAOI) Q1 2024 Earnings Call Transcript

Thompson Lin: We would have — the one I addressed would be more than Q1 next year. [Indiscernible] either go through AOI, and it’s special because customer is very concerned about the quality. But with 1.6 to 800G [indiscernible]. And I’m talking about is — at the end of the year I am talking about our next year it will be $500 million to $600 million higher, getting more — or that is like two kilometer higher, it is not as our reach, it is not [indiscernible]; so it’s a pretty ASP, high gross margin product. The 1.6T, I don’t know if next year it’s more like — it will be the multi more [indiscernible] for shorter distance, maybe 500 meter and below; but we have all that producing [ph].

Dave Kang: Got it. And then, sticking with 800 gig, I think you need stuff like — maybe, two customers that will ramp third quarter. Just wondering, if you’ve been qualified or is that peels [ph] already?

Thompson Lin: The royalty model in Q3 or Q4. We are doing on quite occasions. So it’s a 2 kilometer and higher, including the [indiscernible]. So, I would say more than 200. On a hyperscale, I would say maybe 3 customers including — there are some other smaller customers. The one — for sure we don’t want to push in Q3, so we are trying to outpace so pick up the volume. Now with Q4 or Q3, we can’t say — it is a bit higher, maybe September.

Dave Kang: Got it. And then, you — regarding your press release, at the beginning of AOC — about that 800 gig AOC, that you jointly developed with Creta [ph]. Can you just give more color exactly what they provide and what you guys provide? And where are we as far as sampling or even going to production?

Stefan Murry: So to create a mix with DSP [ph] we make an active optical cables around it [ph]. And we haven’t commented on our new production schedules so far.

Dave Kang: Okay. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Dr. Thomas Lin. Please go ahead, sir.

Thompson Lin: Okay. Thank you for joining us today. As always, we want to extend a thank you to our investors, customers and employees for your continued support. As we discuss today, we believe the long-term demand driver we met strong to perform our data center and CATV business. And we believe we are well positioned to capitalize on this opportunity. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.