Applied Optoelectronics
31 named things its latest annual report says its results depend on, each in the company's own words. 13 of them are also named by other companies we've read.
Customers
Microsoft
earns from · 28.8% of our revenuenamed as a riskIn 2025, Digicomm represented 53.1% of our revenue and Microsoft represented 28.8% of our revenue.Risk factors (Item 1A)
Also named by AAON, AES, AJG, AMD, BLK, CDW, CEG, CG and 13 more
Digicomm
earns from · 53.1% of our revenuenamed as a riskIn 2025, Digicomm represented 53.1% of our revenue and Microsoft represented 28.8% of our revenue.Risk factors (Item 1A)
Oracle
earns from · 12.4% of our revenueIn 2025, 2024 and 2023, Microsoft accounted for 28.8%, 43.7% and 46.6% of our revenue, respectively, and in 2024, Oracle accounted for 12.4% of our revenue.Business (Item 1)
ATX Networks
earns from · 15.6% of our revenueIn 2025, 2024, and 2023, Digicomm accounted for 53.1%, 34.1% and 11.3% of our revenue, respectively, and in 2023, ATX Networks accounted for 15.6% of our revenue.Business (Item 1)
Comcast
earns fromMSOs like Comcast and Charter have announced plans to spend billions of dollars over the next few years to upgrade to DOCSIS 4.0 network equipment.Business (Item 1)
Charter Communications
earns fromMSOs like Comcast and Charter have announced plans to spend billions of dollars over the next few years to upgrade to DOCSIS 4.0 network equipment.Business (Item 1)
Also named by CMCSA
Suppliers
Sole-source raw materials and components
depends onnamed as a riskSome of the raw materials and components we use in our products are available only from a sole source or have been qualified only from a single supplier.Risk factors (Item 1A)
Partners and platforms
BOK Financial
depends onnamed as a riskWe have lending arrangements with several financial institutions, including credit facilities with several lending institutions in Asia, and BOK Financial in the U.S.Risk factors (Item 1A)
Competitors
Coherent Corporation
competes withOur major competitors in one or more of our markets include Coherent Corporation, Eoptolink Technology Inc., Ltd., Foxconn Interconnect Technology Ltd., InnoLight Technology (Suzhou) Ltd., Intel Corporation, Lumentum Holdings, Inc., Mitsubishi, Molex, LLC, Source Photonics, Inc. and Sumitomo Electric Industries, Ltd.Business (Item 1)
InnoLight Technology (Suzhou) Ltd.
competes withOur major competitors in one or more of our markets include Coherent Corporation, Eoptolink Technology Inc., Ltd., Foxconn Interconnect Technology Ltd., InnoLight Technology (Suzhou) Ltd., Intel Corporation, Lumentum Holdings, Inc., Mitsubishi, Molex, LLC, Source Photonics, Inc. and Sumitomo Electric Industries, Ltd.Business (Item 1)
Places
China
concentrated in · 42.8%named as a riskAdditionally, a substantial portion of our property, plant and equipment, 42.8%, 46.9% and 43.0%, as of December 31, 2025, 2024 and 2023, was located in China, respectively.Risk factors (Item 1A)
Also named by A, AA, AAP, AAPL, AB, ADI, AEHR, ALAB and 261 more
Ningbo, China
concentrated in · 57.5%named as a riskA total of $262.1 million, $111.8 million and $43.3 million or 57.5%, 44.8% and 19.9% of our revenue in the years ended December 31, 2025, 2024 and 2023 was attributable to our product manufactured at our plant in China, respectively.Risk factors (Item 1A)
Taiwan
operates innamed as a riskFactors affecting military, political or economic conditions between China and Taiwan could have a material adverse effect on our financial condition and results of operations, as well as the market price and the liquidity of our common shares.Risk factors (Item 1A)
Also named by AAPL, AB, ADI, AEHR, ALAB, AMAT, AMD, ANET and 50 more
Sugar Land, Texas
concentrated innamed as a riskIf our MBE or MOCVD fabrication facility in Sugar Land, Texas were to be damaged or destroyed for any reason, our manufacturing process would be severely disrupted.Risk factors (Item 1A)
Taipei, Taiwan
operates innamed as a riskIn addition, our manufacturing facility in Taipei, Taiwan, is susceptible to typhoons and earthquakes, and our manufacturing facility in Ningbo, China, has from time to time, suffered electrical outages.Risk factors (Item 1A)
Hazards
Gulf of Mexico hurricanes
operates innamed as a riskFor example, our corporate headquarters and wafer fabrication facility in Sugar Land, Texas is located near the Gulf of Mexico, an area that is susceptible to hurricanes.Risk factors (Item 1A)
Commodities and inputs
Chinese Renminbi (RMB)
exposed to its price · 21.7% of our operating expensesnamed as a riskIn the year ended December 31, 2025, 21.7% of our operating expenses were denominated in RMB and 17.8% of our operating expenses were denominated in NT dollars.Market risk (Item 7A)
Also named by ALB, AOS, APD, BBW, BWA, CGNX, COHR, DD and 15 more
New Taiwan dollar
exposed to its price · 17.8% of our operating expensesnamed as a riskIn the year ended December 31, 2025, 21.7% of our operating expenses were denominated in RMB and 17.8% of our operating expenses were denominated in NT dollars.Market risk (Item 7A)
Aluminum and rare earth minerals sectoral tariffs
exposed to its pricenamed as a riskIn addition to country-specific tariffs, sectoral tariffs have come into effect targeting raw materials such as aluminum and rare earth minerals, as well as some finished and semifinished goods, such as semiconductors.Risk factors (Item 1A)
Regulators
Bureau of Industry and Security (BIS)
subject tonamed as a riskBecause the Company's focus on telecommunications products is a priority trade issue for BIS, the Company actively monitors licensing and export policy for our products.Risk factors (Item 1A)
Also named by AMD, APH, CRWV, EXTR, GLW, GTLB, LITE, MTSI and 5 more
State Administration of Foreign Exchange (SAFE)
subject tonamed as a riskFor example, any loans to our China subsidiary to finance their activities cannot exceed statutory limits, must be registered with State Administration of Foreign Exchange, or SAFE, or its local counterpart, and must be approved by the relevant government authorities.Risk factors (Item 1A)
Laws and programs
CERCLA
subject tonamed as a riskFor example, pursuant to environmental laws and regulations, including but not limited to the Comprehensive Environmental Response Compensation and Liability Act, or CERCLA, we may be liable for the full amount of any remediation-related costs at properties we currently own or operate or formerly owned, such as our currently owned Sugar Land, Texas facility, or at properties at which we previously operated, as well as at properties we will own or operate in the future, and properties to which we have sent hazardous substances, whether or not we caused the contamination.Business (Item 1)
Also named by AA, ALB, AN, APD, APLD, ATI, AWK, BMY and 27 more
International Emergency Economic Powers Act (IEEPA) tariffs
subject tonamed as a riskIn February 2026, the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unlawful, and U.S. Customs and Border Protection subsequently announced that IEEPA-based tariff provisions would be terminated effective February 24, 2026.Risk factors (Item 1A)
Also named by ANET, ARW, COHR, CSW, DECK, FIVE, IBP, KLAC and 8 more
U.S. tariffs on China imports
subject tonamed as a riskA significant portion of our manufacturing operations are based in Ningbo, China; therefore, there could be material adverse effects on our business, financial condition, and/or cash flow if any new tariffs, legislation, regulations, or executive orders are implemented, or if existing trade agreements are renegotiated or if China or other affected countries take further retaliatory trade measures.Risk factors (Item 1A)
Dodd-Frank conflict minerals rules
subject tonamed as a riskThese rules have imposed and will continue to impose additional costs and may introduce new risks related to our ability to verify the origin of any "conflict minerals" used in our products.Business (Item 1)
U.S. Section 232 and Section 301 tariffs
subject tonamed as a riskHowever, tariffs imposed under other authorities, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, remain in effect, and the U.S. government has indicted that it may pursue additional or replacement tariffs under alternative legal authorities, including temporary measures under Section 122 of the Trade Act of 1974.Risk factors (Item 1A)
China Labor Contract Law
subject tonamed as a riskThe China Labor Contract Law, which went into effect in 2008, together with its implementing rules, provides increased rights to Chinese employees compared to prior employment laws in China.Risk factors (Item 1A)
EU RoHS and REACH
subject tonamed as a riskOur operations and many of our products are subject to various federal, state, local, and foreign regulations that have been adopted with respect to the environment, such as the Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment; Registration, Evaluation, Authorization, and Restriction of Chemicals; and Substances of Concern In Products, regulations adopted by the European Union, or EU.Business (Item 1)
Technology
Molecular Beam Epitaxy (MBE)
depends onnamed as a riskWe use a proprietary MBE laser manufacturing process that requires customized equipment, and this process is currently conducted and located solely at our wafer fabrication facility in Sugar Land, Texas, such that a natural disaster, cyberattack, terrorist attack or other catastrophic event that affects that facility would materially harm our operations.Risk factors (Item 1A)
Artificial intelligence data center demand
earns fromnamed as a riskIf AI adoption slows, stalls, or follows a trajectory that differs from our planning assumptions, we could incur overcapacity, lower utilization rates, and negative operating leverage.Risk factors (Item 1A)
DOCSIS 4.0
earns fromBeginning in 2025, nearly all of our CATV equipment sold meets DOCSIS 4.0 standards.Business (Item 1)