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Discontinued — last reported Q3 '19

Operating margin at other companies

Intel logo
IntelINTC
-5.2%-2.2pp
Lumentum Holdings Inc. logo
Lumentum Holdings Inc.LITE
9.5%+5.7pp
Fabrinet logo
FabrinetFN
9.9%+0.4pp
MACOM Technology Solutions logo
MACOM Technology SolutionsMTSI
16%+4.2pp
GLW
CorningGLW
15.2%+5.4pp
Ciena logo
CienaCIEN
9.2%+4.5pp

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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Gross margin22.7%
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 operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.