Applied Optoelectronics, Inc.

I will be your conference operator. At this time, I would like to welcome everyone to Applied Opto-Electronics fourth quarter and full year 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remark, there will be a question and answer session. Please note that this call has been recorded. I will now turn the call over to Cassidy Fuller, Investor Relations for AOI. Ms. Fuller, you may begin.

Thank you. I'm Cassidy Fuller, Investor Relations for Applied Optoelectronics, and I am pleased to welcome you to AOI's first quarter 2022 financial results conference call. After the market closed today, AOI issued a press release announcing its first quarter 2022 financial results. and provided its outlook for the second quarter of 2022. The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to the recording can be found on the investor relations section of the AOI website, and we archived for one year. Joining us on today's call is Dr. Thompson Lin, AOI's founder, chairman, and CEO, and Dr. Stephan Murray, AOI's Chief Financial Officer and Chief Strategy Officer. Thompson will give an overview of AOI's Q1 results, and Stephan will provide financial details and the outlook for the second quarter of 2022. A question and answer session will follow our prepared remarks. Before we begin, I would like to remind you to review AOI's Safe Harbor Statement. On today's call, management will make forward-looking statements. 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. In some cases, you can identify forward-looking statements by terminology, such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will, or thinks, and by other similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and our customer responses to our innovations, as well as statements regarding the company's outlook for the second quarter of 2022. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this earnings call to conform these statements to actual results or to changes in the company's expectations. More information about the risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2021. Also, all financials discussed today are on a non-GAAP basis unless specifically noted otherwise. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures, as well as a discussion of why we present non-GAAP financial measures, are included in the earnings press release that is available on our website. I'd like to note the date of our second quarter 2022 earnings call is currently scheduled for August 4th, 2022. Now I'd like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics founder, chairman, and CEO. Thompson?

Thank you, Cassidy, and thank you for joining our call today. Turning to the fourth quarter, we delivered revenue and gross margin in line with our expectations. and non-gate EPS above our expectations. During the quarter, we continued to see strong demand in the CATB market and improving conditions in the telecom market. Total revenue for the fourth quarter increased 5.1% year-over-year to $52.2 million. Total revenue in our CATB segment of $25 million was up 34% year-over-year and was slightly higher compared to Q4. The overall CATB demand environment remains strong as we see increased activity and orders throughout the year and into early 2023. We are working to add additional capacity to meet this elevated demand. Total revenue for our data center products of $21.4 million decreased 17.4% year-over-year and 15% sequentially, as several of our customers continue to reduce their 40G and 100G purchase, while our range of next-generation 400G is still in the early stage. We can notice the strong customer traction on 400G, and I'm very pleased to report that during the quarter, AOI was selected by a major hyperscale data center customer as a vendor for several of our 400G products. We have a long relationship with this customer and have historically been a significant supplier of their early 40G and 100G transceiver needs. Pending the completion of final interoperability testing with the company's other prospective vendors, we expect order to begin In Q3, we delivered that in Q3 or in early Q4. During the fourth quarter, we secured one new design win, which was a 400G transceiver product for hyperscale data center operators. With that, I will turn the call over to Stephen to review the details of our Q1 performance and our Q2, Stephen.