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Applied Opto Surges 6%; They’re Gonna Keep Cleaning Up, Says Street

Shares of fiber-optic component supplier Applied Optoelectronics (AAOI) are up $4.17, or almost 6%, at $76.81, after the company this morning pre-announced its revenue and profit will be higher for Q2 than it originally thought, as the Street sees the company continuing to clean up on the craze for “100G,” or 100-gigabit-per-second fiber links in and between cloud computing data centers.

The company now sees revenue this quarter of “approximately $117.3 million,” well above the range of $106 million to $112 million it forecast at the time of its Q1 report on May 4th.

For profit, the company now sees ESP of $1.31 to $1.36, on a non-GAAP basis, versus the prior forecast of $1.09 to $1.19. Applied also said its margins are turning out higher than thought. Gross profit may be 45% to 45.4% of sales, versus what had been expected to be 41% to 42.5%.

Said CEO Dr. Thompson Lin, "I'm pleased to announce that we expect to deliver another record quarter with our top and bottom-line results expected to exceed our guidance."

Added Lin, "Again this quarter, our results were driven by improvement in our manufacturing costs...