Applied Optoelectronics, Inc.

Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Please note that this call is being recorded. I will now turn the call over to Lindsay Savarese, Investor Relations for AOI. Ms. Savarese, you may begin.

Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics. I am pleased to welcome you to AOI's first quarter 2026 financial results conference call. After the market closed today, AOI issued a press release announcing its first quarter of 2026 financial results and provided its outlook for the second quarter of 2026. 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 will be 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 2026. 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, levels of activity, performance, or achievements of the company or its industry to differ materially from those expressed or implied in such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as believes, forecasts, anticipates, estimates, suggests, intends, predicts, expects, plans, may, should, could, would, will, potential, or thinks, or by the negative of those terms or other similar expressions that convey uncertainty of future events or outcomes. The company has based these forward-looking statements on its current expectations, assumptions, estimates, and projections. While the company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the company's control. Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of its products into new markets and customer responses to its innovations, as well as statements regarding the company's outlook for the second quarter of 2026 and for the full year of 2026. Except, as required by law, AOI assumes no obligation to update these 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 other risks that may impact the company's business are set forth in the Risk Factors section of AOI's reports on file with SEC, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. Also, all financial results and other financial measures 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 company's earnings press release that is available on AOI's website. Before moving to the financial results, I'd like to note that AOI Management is attending the 21st Annual Needham Technology, Media, and Consumer Conference on Wednesday, May 13th. This discussion will be webcast live, and a link to the webcast will be available on the Investor Relations section of the AOI website. Lastly, I'd like to note that the date of AOI's second quarter 2026 earnings call is currently scheduled for August 6, 2026. Now, I would like to turn the call over to Dr. Thompson Lin, AOI's founder, chairman, and CEO. Thompson?

Thank you, Lindsay, and thank you for joining our call today. We are pleased to deliver a solid first quarter result, zero in line with our expectations, driven by robust demand in both our data center and CATV business. We generated our fourth consecutive quarter of regular revenue as we executed well to expand our manufacturing capacity. We continue to see accelerating customer demands needed to support the next wave of AI infrastructure deployment. And we anticipate starting sequential revenue growth throughout these years, with a significantly larger range expected starting in Q3 as additional capacity comes online. During the first quarter, we delivered revenue of $151.1 million non-GAAP gross margin of 29.2% and non-gate loss per share of $0.07, all in line with our expected guidance range. Importantly, during the quarter, we saw and continue to see strong customer engagement around our 800G and 1.6G products, particularly as AI-driven data center investment is led. We completed our fourth volume shipment of our 800G single-mode transceiver to one of our large hyperscale customers in Q1. And we continue to anticipate a strong volume range of our 800G product starting in Q2. During the fourth quarter, we announced that we'd received our fourth volume order for our 1.6T transceiver from another long-term major hyperscale customer along with two new volume orders from this customer for our 800Z single-mode transceivers. Looking ahead, forecast demand continues to outpace our production capacity throughout mid-2027. We are working hard to add additional capacity to meet this demand. Based on new demand and our anticipated capacity range, we now believe our 2026 revenue will exceed $1.1 billion, and we now expect it to generate more than $140 million in long-term operating income in these years. With that, I will turn the call over to Stephen to review the details of our Q1 performance and our look for Q2. Stephen. Thank you, Thompson.