Boyd Wild
08-28

$Applied Optoelectronics(AAOI)$  This is why AAOI is aggressively ramping laser manufacturing capacity. The more they deliver for 1.6T, the higher the gross margin. By Q3, Q4 next year, when they deliver the CPO laser or EOSAP module to different customers, the gross margin will be even higher, because gross margin for laser is about 55%-65%. For EOSAP, the gross margin should be more than 50%, and that's more like Q3, Q4 next year. In the short term, the most important factor for gross margin improvement is the percentage of 1.6T transceiver, because gross margin is very good.

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