Optical transceiver, subsystem, and component vendor Applied Optoelectronics, Inc. (NASDAQ: AAOI) says it has received first orders from a new large-scale data center operator customer. The customer, whom AOI declined to further identify, has ordered both 40-Gbps QSFP+ and 100-Gbps QSFP28 optical modules (see "Applied Optoelectronics intros long-range 40G data center transceivers" and "MACOM, Applied Optoelectronics partner on 100G QSFP28 optical transceiver designs").
"After an extensive period of product testing and qualification, we are pleased to have the opportunity to provide our industry-leading products to a new large data center customer. The initial orders we have received, totaling more than 10,000 transceivers of various product types, are for delivery over the next couple of quarters, and represent a compelling opportunity to develop a long-term relationship with this new customer," said Dr. Thompson Lin, founder, president, and CEO of AOI. "We believe we are the market leader within our current data center customers and we are excited to have the opportunity to demonstrate our capabilities to this new customer as the relationship deepens over time."
In a note to investors issued this morning, Simon M. Leopold, communications equipment analyst and managing director at financial analysts Raymond James, expressed his belief that AOI's new customer is Facebook. Leopold suggests the company already ships products to Microsoft and Amazon. He rates the company's stock at "Strong Buy 1."
AOI says it has invested more than $70 million in the last four quarters on production and R&D facilities to meet demand for its data center and CATV broadband product lines. This includes in-house production of laser diodes and light engines.
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