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Discontinued — last reported Q3 '19

Gross margin at other companies

Intel logo
IntelINTC
35.4%+3.8pp
Coherent logo
CoherentCOHR
36.8%+2.3pp
Lumentum Holdings Inc. logo
Lumentum Holdings Inc.LITE
40.8%+11.2pp
Fabrinet logo
FabrinetFN
12%-0.1pp
MACOM Technology Solutions logo
MACOM Technology SolutionsMTSI
55.7%+1.4pp
GLW
CorningGLW
36.4%+3.3pp

Other financials

Income statement

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Revenue$151.1M+51.4%
Gross profit$15.9M-21.1%
Operating income-$16.5M-147%
Net income-$14.3M-55.7%
EPS (diluted)-$0.42-55.6%

Balance sheet

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Cash & equivalents$439.7M+760%
Total debt$115.1M+280%
Total equity$1.1B+258%
Total assets$1.6B+143%

Cash flow

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Operating cash flow-$85.4M-67.6%
CapEx$58.2M+105%
Free cash flow-$143.6M-81.0%

Valuation

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Market cap$12.99B+752%
Enterprise value$12.66B+732%
P/S25.6×+20.7×

Profitability

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Operating margin-24.5%
Net margin-8.5%-3.9pp
FCF margin-82.4%+129pp

Returns & leverage

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Return on equity-6.1%-2.9pp
Debt / equity0.1×0.0×
Current ratio3.8×+1.9×

Where this comes from

Calculated from Applied Optoelectronics’s reported figures.

Based on trailing twelve months.

The official record: Applied Optoelectronics’s 10-Q, filed November 7, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.