APPLIED OPTOELECTRONICS, INC.

Applied Optoelectronics, Inc. (AOI) is a vertically integrated provider of fiber-optic networking products. The company primarily serves four networking end-markets: internet data center, cable television (CATV), telecommunications (telecom), and fiber-to-the-home (FTTH). AOI designs and manufactures optical communications products, ranging from components, subassemblies, and modules to complete turn-key equipment. Their product design process starts with lasers and laser components, from which they develop a wide range of products tailored to customer needs and specifications, varying by end market, intended use, and integration level. AOI focuses on higher-performance segments within all four target markets, which require faster connectivity and innovation. These markets are driven by significant bandwidth demand due to the growth of network-connected devices, video traffic, cloud computing, and online social networking. In the internet data center market, AOI benefits from the increasing use of higher-capacity optical networking technology, replacing older, lower-speed optical interconnects, especially at speeds of 800 Gbps and above, as well as the shift to open internet data center architectures and increased in-house equipment design by leading internet companies. In the CATV market, AOI benefits from trends such as the move to higher bandwidth networks among CATV service providers and the desire by CATV multiple system operators (MSOs) to increase return-path bandwidth for their customers. For the FTTH market, AOI benefits from ongoing passive optical network deployments and system updates by telecom service providers. In the telecom market, the company benefits from the deployment of new high-speed fiber-optic networks, including 5G networks, by telecom network operators. The CATV market is AOI's most established business, for which it supplies a broad array of products, including lasers, transmitters, transceivers, and turn-key equipment.