Applied Optoelectronics, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Applied Optoelectronics, Inc. filed its 2023 10-K, detailing financial performance, executive compensation, and stock information.</b>

AI Summary

APPLIED OPTOELECTRONICS, INC. (AAOI) filed a Annual Report (10-K) with the SEC on February 23, 2024. The company reported financial results for the fiscal year ended December 31, 2023. Key executives include Chih-Hsiang (Thompson) Lin (CEO), Stefan Murry (CFO), Hung-Lun (Fred) Chang (SVP & North America GM), and David Kuo (SVP & Chief Legal Officer). The filing details stock-based compensation plans with various grant dates and expiration dates. Information on preferred and common stock, additional paid-in capital, and retained earnings is provided for fiscal years 2020-2023. The report includes financial data such as total assets and total debt for the fiscal years 2021 and 2022.

Why It Matters

For investors and stakeholders tracking APPLIED OPTOELECTRONICS, INC., this filing contains several important signals. This 10-K provides a comprehensive overview of AOI's financial health and operational structure for the fiscal year 2023, crucial for investors assessing the company's current standing. The detailed breakdown of stock compensation and equity components offers insights into the company's capital structure and its strategies for employee incentives.

Risk Assessment

Risk Level: medium — APPLIED OPTOELECTRONICS, INC. shows moderate risk based on this filing. The filing is a standard 10-K, which typically contains a broad range of information, but specific financial performance or significant risk factors requiring immediate attention are not highlighted in the provided snippet.

Analyst Insight

Investors should review the full 10-K filing to understand the company's detailed financial performance, strategic initiatives, and any identified risks for the fiscal year 2023.

Executive Compensation

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-23 — Filing Date (Date of submission)
• 60,000 — Stock Options (CEO grant amount)
• 12,000 — Stock Options (CFO grant amount)
• 18,195 — Stock Options (SVP North America GM grant amount)
• 40,000 — Stock Options (SVP Chief Legal Officer grant amount)
• 38,148 — Total Assets (As of 2022-12-31)
• 28,622 — Total Debt (As of 2022-12-31)

Key Players & Entities

• APPLIED OPTOELECTRONICS, INC. (company) — Filer name
• Chih-Hsiang (Thompson) Lin (person) — CEO
• Stefan Murry (person) — CFO
• Hung-Lun (Fred) Chang (person) — Senior Vice President and North America General Manager
• David Kuo (person) — Senior Vice President and Chief Legal Officer
• 20231231 (date) — Fiscal year end
• 20240223 (date) — Filing date
• SEMICONDUCTORS & RELATED DEVICES (industry) — Standard Industrial Classification

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, Par value $0.001 AAOI NASDAQ Global Market Securit
• $5.96 — SDAQ Global Markets on June 30, 2023 of $5.96 per share. Shares of common stock held
• $217.6 m — n 2023, 2022 and 2021 , our revenue was $217.6 million, $222.8 million, and $211.6 milli
• $222.8 m — 2021 , our revenue was $217.6 million, $222.8 million, and $211.6 million and our gross
• $211.6 million — was $217.6 million, $222.8 million, and $211.6 million and our gross margin was 27.1%, 15.1%,
• $56 m — 023, 2022 and 2021 , we had net loss of $56 million, $66.4 million, and $54.2 million
• $66.4 m — 2021 , we had net loss of $56 million, $66.4 million, and $54.2 million , respectively
• $54.2 million — loss of $56 million, $66.4 million, and $54.2 million , respectively. At December 31, 2023 an
• $265.1 million — nd 2022 , our accumulated deficits were $265.1 million and $209.1 million, respectively. In 20
• $209.1 m — ulated deficits were $265.1 million and $209.1 million, respectively. In 2023 , we earne

Filing Documents

• aaoi20231231_10k.htm (10-K) — 2539KB
• ex_625903.htm (EX-4.7) — 20KB
• ex_597548.htm (EX-23.1) — 3KB
• ex_597549.htm (EX-31.1) — 9KB
• ex_597550.htm (EX-31.2) — 9KB
• ex_597551.htm (EX-32.1) — 6KB
• ex_625810.htm (EX-97) — 33KB
• 0001437749-24-005367.txt (&nbsp;) — 11419KB
• aaoi-20231231.xsd (EX-101.SCH) — 96KB
• aaoi-20231231_cal.xml (EX-101.CAL) — 93KB
• aaoi-20231231_def.xml (EX-101.DEF) — 619KB
• aaoi-20231231_lab.xml (EX-101.LAB) — 552KB
• aaoi-20231231_pre.xml (EX-101.PRE) — 686KB
• aaoi20231231_10k_htm.xml (XML) — 2008KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 13 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 27 Item 2.

Properties

Properties 27 Item 3.

Legal Proceedings

Legal Proceedings 27 Item 4. Mine Safety Disclosure 27 Part II 28 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28 Item 6. [Reserved] 28 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 41 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 42 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 42 Item 9A.

Controls and Procedures

Controls and Procedures 42 Item 9B. Other Information 45 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 45 Part III 46 Item 10. Directors, Executive Officers and Corporate Governance 46 Item 11.

Executive Compensation

Executive Compensation 46 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 46 Item 13. Certain Relationships and Related Transactions, and Director Independence 46 Item 14. Principal Accounting Fees and Services 46 Part IV 47 Item 15. Exhibits, Financial Statements Schedules 47 Item 16. Form 10-K Summary 47

Signatures

Signatures 52 2 Table of Contents Forward-Looking Information This Annual Report on Form 10-K ("Form 10-K") contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management, including statements appearing under the heading, "Management's Discussion and Analysis of Financial Condition and Results of Operations". The statements contained in this Form 10-K that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as may,'' will,'' should,'' expects,'' plans,'' anticipates,'' believes,'' estimates," "strategy," "future," "likely," or "would" or by other similar expressions that convey uncertainty of future events or outcomes. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the Company's actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include but are not limited to: statements about reduction in the size or quantity of customer orders; change in demand for the Company's products due to industry conditions; our ability to maintain sufficient liquidity; changes in manufacturing operations; volatility in manufacturing costs; delays in shipments of products; disruptions in the supply chain; change in the rate of design wins or the rate of customer acceptance of new products; the Company's reliance on a small number of customers for a substantial portion of its revenues; pricing pressure; a decline in demand for our customers' products or their rate of deployment of their products; general conditions in

Business

Item 1. Business Overview Applied Optoelectronics, Inc. (the "Company" or "AOI") is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television, ("CATV"), telecommunications, ("telecom"), and fiber-to-the-home ("FTTH"). We design and manufacture a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. In designing products for our customers, we generally begin with the fundamental building blocks of lasers and laser components. From these foundational products, we design and manufacture a wide range of products to meet our customers' needs and specifications, and such products differ from each other by their end market, intended use and level of integration. We are primarily focused on the higher-performance segments within all four of our target markets, which increasingly demand faster connectivity and innovation. The four end markets we target are all driven by significant bandwidth demand fueled by the growth of network-connected devices, video traffic, cloud computing and online social networking. To address this increased bandwidth demand, CATV and telecom service providers are competing directly against each other by providing bundles of voice, video and data services to their subscribers and investing to enhance the capacity, reliability and capability of their networks. Our internet data center market is also experiencing substantial growth as hyperscale data center operators build and upgrade their infrastructure to support artificial intelligence ("AI") applications which are compute and bandwidth intensive. As a result of these trends, fiber-optic networking technology is becoming essential in all four of our target markets, as it is often the only economical way to deliver the desired bandwidth. The internet data center market is currently our largest

View Full Filing

View this 10-K filing on SEC EDGAR