Shares of Applied Optoelectronics Inc. (AAOI, Financial) plunged around 20% on Friday, continuing Thursday's loss on the back of poor preliminary third-quarter results, which were short of previous estimates and were negatively impacted by lower sales.
"Despite this shortfall, we maintained a strong gross margin profile in the quarter, and continued to experience solid demand with our other top datacenter customers," Dr. Thompson Lin, the company's founder, president and CEO, said.Â
The company expects revenue to come in between $88 million and $89 million, down from the previous outook of $107 million to $115 million.
Applied Optoelectronics anticipates gross margins in the range of 43.5% to 44.5%, raising the lower end of the guidance from 43%.
Net income for the quarter is now projected to be between $18.6 million and $19.6 million and non-GAAP net income, after tax, to be between $21.2 million and $22.2 million. The previous forecast was $26.6 million to $29.4 million.
GAAP earnings per share are expected to range from 91 cents to 96 cents. Non-GAAP EPS are projected to range from $1.04 to $1.09.Â
Inotek Pharmaceuticals Corp. (ITEK, Financial) reversed its positive trend in premarket trading, losing nearly 10%. Yesterday, the company filed a preliminary proxy statement with the Securities and Exchange Commission for its proposed merger with Rocket Pharmaceuticals Ltd.
Disclosure: The author holds no positions in any stocks mentioned.
