May. 7 at 5:37 PM
$AAOI … one lingering concern some analysts have expressed ahead today's Q1 ER concerns the delayed ramp of AAOI's 800G products will have on the company's Q1 results. Which is expected to be somewhat negative given the resulting unfavorable remaining product mix in Q1, with heavier reliance on lower-margin 400G products. And thus, creating a headwind to gross margin despite strength in CATV. Additionally, capacity constraints and supply chain limitations are expected to continue to cap revenue upside, preventing the company from fully meeting strong customer demand. As well as, increasingly stiff competition from Lumentum (
$LITE), Ciena (
$CIEN) and Coherent (
$COHR) in the optical networking market. Especially, now following Coherent and Lumentums partnerships with NVIDIA.
