Applied Optoelectronics, Inc.

Good afternoon. I will be your conference operator, and at this time I would like to welcome everyone to Applied Optoelectronics' second 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. If you require operator assistance at any point, please press star, then zero, and then also please note that this call is being recorded. I would now like to turn the conference over to Lindsay Savarese, Investor Relations for ALI. 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 second quarter, 2026, financial results conference call. After the market closed today, AOI issued a press release announcing its second quarter, 2026, financial results and provided its outlook for the third 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. Stefan Murry, AOI's chief financial officer and chief strategy officer. Thompson will give an overview of AOI's Q2 results, and Stefan will provide details Financial Details, and the Outlook for the third 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 think. 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 third 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 the SEC, including the company's annual report on Forms 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 Rosenblatt's sixth annual Technology Summit virtually on August 18th. 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 third quarter 2026 earnings call currently scheduled for November 5th, 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 second quarter result that was in line with or better than our expectations, driven by robust demand in both our data center and CATB business. We generated our fifth consecutive quarter of record revenue, and we achieved an important milestone as we returned to Long Gate. Profitability Demand to support next-generation AI infrastructure remains so robust that our near-term revenue is bounded almost entirely by production capacity and key component availability. Because of this, we continue to anticipate steady sequential revenue growth this year and continue non-GAAP profitability. During the second quarter, we delivered revenue of $191.9 million and non-gate gross margin of 29.8%. In line with our expected guidance range and our non-gate income per share of $0.06 came in above our expectations. Importantly, during the quarter, we saw continued robust customer engagement around our 800G and 1.6G In line with our expectations, we saw a strong volume of our A100G product in Q2, which more than doubled sequentially. Looking ahead, forecast demand continues to outpace our production capacity through mid-2027. We are working hard to add additional capacity to meet this demand. We continue to believe our 2026 revenue will be around $1.1 billion this year. With that, I will turn the call over to Stefan to review the detail of our Q2 performance and our for Q3. Stefan. Thank you, Thompson.