---
title: "Applied Optoelectronics filed $269.9 million of revenue. Its year-end 800G and 1.6T capacity line went from 'around 650,000' to 'over 500,000' a month."
description: "Applied Optoelectronics' third-quarter 8-K and 10-Q put revenue at $269.9 million against a $255–290 million guide and set a fourth-quarter guide of $385–420 million. The release moved its year-end 800G and 1.6T capacity line from around 650,000 to over 500,000 pieces a month, citing electrical power in the US. Capex reached $702.1 million in nine months, with $406.9 million more in equipment prepayments. Plus the Marvell–Lumentum merger terms as filed, each with its accession."
canonical: https://evidinvest.com/blog/aaoi-lite-q3-2026-optics-read-back-and-the-marvell-lumentum-terms-2026-11-07
date: "2026-11-07"
last_updated: "2026-11-07"
author: "EvidInvest Team"
publisher: "EBD Sweden AB (EvidInvest)"
tags: ["AAOI", "LITE", "MRVL", "Applied Optoelectronics", "Lumentum", "Marvell", "AI infrastructure", "optical networking", "earnings results", "merger agreement", "8-K", "10-Q", "SEC filings"]
---

# Applied Optoelectronics filed $269.9 million of revenue. Its year-end 800G and 1.6T capacity line went from 'around 650,000' to 'over 500,000' a month.

- Published: 2026-11-07
- Author: EvidInvest Team, EvidInvest (published by EBD Sweden AB)
- Canonical URL: https://evidinvest.com/blog/aaoi-lite-q3-2026-optics-read-back-and-the-marvell-lumentum-terms-2026-11-07
- Research, not investment advice.

> Applied Optoelectronics' third-quarter 8-K and 10-Q put revenue at $269.9 million against a $255–290 million guide and set a fourth-quarter guide of $385–420 million. The release moved its year-end 800G and 1.6T capacity line from around 650,000 to over 500,000 pieces a month, citing electrical power in the US. Capex reached $702.1 million in nine months, with $406.9 million more in equipment prepayments. Plus the Marvell–Lumentum merger terms as filed, each with its accession.

*Every figure below was read from the companies' own filings on sec.gov and is cited with its
accession: Applied Optoelectronics' third-quarter results furnished on Form 8-K on 5 November and
its Form 10-Q filed minutes later, its credit-agreement 8-K of 4 November, and the Marvell and
Lumentum 8-Ks of 2 November with the merger agreement. Where the 8-K and the 10-Q both give a
figure, we cite the 10-Q. Outlook figures are the companies' own and are labelled as company
guidance. We show no analyst estimates, no consensus and no share prices, and nothing from the
earnings calls, which are not filings. Sums, differences and quarterly figures derived from
year-to-date totals are our arithmetic on filed values and are marked *(Ours.)*
Research, not investment advice.*

Applied Optoelectronics **[$AAOI](https://evidinvest.com/valuation/AAOI)** furnished its third-quarter results on
5 November (**accession `0001683168-26-008351`**) and filed its 10-Q minutes later
(**`0001437749-26-035282`**). The release's first number is revenue of $269.9 million. Its CFO
paragraph has a second one, and it moved.

In August the same paragraph said AOI expected "by the end of this year that we will be capable
of producing around 650,000 pieces of 800G and 1.6 Tb products per month"
(`0001683168-26-006055`). In November it says "we now expect by the end of 2026 that we will have
sufficient manufacturing equipment installed to produce over 500,000 pieces". The reason given:
"We expect our 2027 capacity expansion plan in the US to take longer to complete due to longer
than expected time to obtain necessary electrical power among other construction related issues."

If you are here for a forecast, wrong page. What follows is the quarter as filed, the cash that
built the capacity, and, for Lumentum, the merger agreement Marvell filed on 2 November, clause by
clause.

## 1. The guide against the quarter

Guide from the second-quarter release (`0001683168-26-006055`); result from the 10-Q and the
release (`0001437749-26-035282`, `0001683168-26-008351`); new guide from the release:

| | Q3 2026 guide | Q3 2026 filed | Q4 2026 guide |
|---|---|---|---|
| Revenue | $255–290 million | $269.9 million | $385–420 million |
| Gross margin, non-GAAP | 29–30.5% | 28.7% (GAAP 28.2%) | 29.5–31% |
| Net income, non-GAAP | $10.1–24.0 million | $14.8 million (GAAP $6.3 million) | $45.9–60.4 million |
| EPS, non-GAAP | $0.11–0.26 | $0.17 (GAAP $0.07) | $0.48–0.63 |

*(Ours: revenue was $2.6 million below the $272.5 million midpoint of the guide; non-GAAP gross
margin was 0.3 points below the bottom of its range; the fourth-quarter revenue range is 42.7% to
55.6% above the third quarter.)*

GAAP net income of $6.3 million follows a $22.8 million loss in the second quarter. The operating
line is still a loss, $1.4 million; other income of $10.1 million, including $3.1 million of
interest income, carried the quarter into profit before a $2.4 million tax charge
(`0001437749-26-035282`).

## 2. Data center is 57.7% of revenue

The 10-Q's market table (`0001437749-26-035282`), with the second quarter from the Q2 10-Q
(`0001437749-26-026278`), $ million:

| | Q3 2025 | Q2 2026 | Q3 2026 |
|---|---|---|---|
| Data Center | 43.9 | 107.7 | 155.6 |
| CATV | 70.6 | 80.6 | 110.9 |
| Telecom | 3.7 | 3.4 | 2.7 |
| Total revenue | 118.6 | 191.9 | 269.9 |
| Data Center share | 37.0% | 56.1% | 57.7% |

*(Ours: Data Center rose 44.5% on the quarter and CATV 37.6%.)* For nine months, Data Center was $344.7
million, or 56.2% of revenue.

## 3. Three customers, 92% of the quarter

The 10-Q: "For the three months ended September 30, 2026, our top three customers represented
41%, 28% and 23% of our revenue, respectively." In the second quarter the three were 42%, 26% and
24% (`0001437749-26-026278`). The top ten were 99% in both quarters. *(Ours: 41% + 28% + 23% =
92%, the same total as the second quarter's 42% + 26% + 24%.)* The percentage sentences name no
customer.

Two names are in the 10-Q elsewhere. Of $413.8 million of receivables, "$234.5 million was due
from Digicomm International Inc.", "approximately 56.7% of total accounts receivable", and
"Management has extended longer than typical payment terms to Digicomm". For nine months, "revenues
from Digicomm were approximately $257.0 million, representing approximately 41.9% of consolidated
revenues", mostly CATV. And the Amazon warrant:
of 7,945,399 warrant shares, the remaining 6,621,166 "may vest over the next 10 years, dependent on
aggregate purchases by Amazon of $4 billion of our products over this time period." Warrants
reduced nine-month revenue by about $4.1 million.

The release mentions "a multi-year strategic agreement with a Tier 1 hyperscale datacenter
customer". The 10-Q gives the terms. The customer "is obligated, with certain conditions, to
purchase 10% of certain 1.6 Tb data center transceiver products from us during the three-year
period beginning June, 2026 and ending May, 2029." AOI in turn is "obligated to supply these
products, including building any additional manufacturing capacity needed to fulfill this
demand", and has "agreed to certain maximum pricing levels". The 10-Q does not name the customer
or give a dollar value.

## 4. Capacity: the two sentences side by side

| | Second-quarter release (`0001683168-26-006055`) | Third-quarter release (`0001683168-26-008351`) |
|---|---|---|
| Installed today | "approaching 200,000 units per month" | "approaching 330,000 units per month" |
| End of 2026, 800G and 1.6T | "around 650,000 pieces" a month | "over 500,000 pieces" a month |
| End of 2027 | — | "over 1 million pieces" a month |

*(Ours: the end-2026 floor is 150,000 pieces below the August figure; the installed figure is up
about 130,000.)* The November wording also changed the noun: August's was "capable of producing",
November's is "sufficient manufacturing equipment installed to produce". The 10-Q's version: AOI
expects "to continue to make investments in capacity expansion through at least the end of 2027".

## 5. Cash: capex and prepayments

Cash-flow statements of the two 10-Qs (`0001437749-26-035282`, `0001437749-26-026278`), $ million:

| | Six months to June | Nine months to September | Q3 2026 *(Ours)* |
|---|---|---|---|
| Net cash used in operating activities | (73.8) | (76.7) | (2.9) |
| Purchase of property, plant and equipment | (335.1) | (702.1) | (367.0) |
| Prepayment for equipment and others | (289.7) | (406.9) | (117.2) |
| Proceeds from common stock offering, net | 1,028.2 | 1,590.6 | 562.4 |

*(Ours: nine-month capex plus prepayments was $1,109.1 million, against operating cash of −$76.7
million; third-quarter figures are nine months less six months.)* The 10-Q splits nine-month capex
into "$315.4 million capital expenditures in the US, $177.4 million in Taiwan, and $209.3 million
in China."

The prepayments sit in "Other assets, net", $465.7 million against $50.9 million at 31 December,
"advance payments for equipment and facility related capital expenditures" that "are expected to
be reclassified to property, plant and equipment as the related assets are received and placed
into service." Net property, plant and equipment was $1,044.0 million, against $376.1 million.
*(Ours: 2.78 times December.)* Construction in progress was $234.7 million, against $39.8 million.

Equity paid for it. The 10-Q puts nine-month financing at $1.59 billion, "primarily attributable to
the net proceeds of $1.59 billion from the ATM Offerings". A third program "completed" on 1 October
with proceeds of "approximately $588 million". Cash, cash equivalents and restricted cash were
$621.5 million at 30 September.

## 6. Commitments and the new loan

Note 18 of the 10-Q (`0001437749-26-035282`) lists "other outstanding purchase commitments for
equipment and facility construction of approximately $928.8 million". It adds $27.1 million left
on a $94.1 million cleanroom contract in Pearland, targeted for "January 10, 2027", and purchase
options on leased Houston buildings at $102.25 million and about $146.6 million, neither exercised.

| Inventories, $ million | 31 Dec 2025 | 30 Jun 2026 | 30 Sep 2026 |
|---|---|---|---|
| Raw materials | 85.7 | | 207.0 |
| Work in process and sub-assemblies | 95.5 | | 169.9 |
| Total, net | 183.1 | 278.8 | 378.0 |

*(Ours: up $99.2 million, or 35.6%, in the quarter; raw materials 2.4 times December.)* Accounts
payable were $494.3 million, against $143.9 million.

Debt is small next to the equity. Loans excluding the convertible notes were $96.6 million, with
$63.4 million available on existing lines, and $128.8 million of convertible senior notes. On
30 October AOI signed a credit agreement with East West Bank as agent (8-K of 4 November,
**`0001683168-26-008310`**): "$30 million in revolving commitments and $170 million in initial term
loan commitments", maturing 30 October 2030, secured "by substantially all of the Company's assets".
Term loans "may be used to purchase or refinance eligible equipment". It replaced the BOK Financial
facility, with a $350,000 termination fee.

One more subsequent event: on 2 November AOI signed a supply contract for "a key raw material" with
purchases "of up to approximately $194.4 million" and prepayments "of up to $40.0 million". Delivery
"is subject to obtaining and maintaining required regulatory approvals in China." The 10-Q does not
name the material.

## 7. Lumentum: nothing new since 4 November, except the agreement

Lumentum's results 8-K (`0001628280-26-068655`) and 10-Q (`0001628280-26-069615`) were both on file
when we published [its six lines on 4 November](https://evidinvest.com/blog/cohr-lite-q3-2026-twelve-filed-lines-before-the-prints-2026-11-04),
so that post already reads them: $1,262.6 million of revenue, a $1.575–1.625 billion
second-quarter guide, one end customer at 37%, $2.95 billion of purchase
obligations. Since then Lumentum has filed only Rule 425 communications; the newest
(`0001193125-26-448735`, 5 November) is a LinkedIn post with no new terms. Coherent's read-back
ran [on 5 November](https://evidinvest.com/blog/cohr-q1-fy27-read-back-2026-11-05). We found no Form S-4 on EDGAR at
04:30 UTC today.

## 8. The Marvell–Lumentum terms, as filed

Marvell's 8-K (**`0001193125-26-442717`**), Item 1.01, and the merger agreement in Exhibit 2.1. The
agreement was signed on 1 November.

**Common stock.** Each Lumentum share converts into "4.500 shares of common stock" of Marvell, "with
cash in lieu of fractional shares". The ratio is fixed.

**Preferred stock.** Each share of Lumentum Series A Convertible Preferred Stock converts into
Marvell common stock on an as-converted basis times the exchange ratio. Its holder can instead elect
"one share of Marvell Series B Preferred Stock", "intended to have the same terms and rights as the
Lumentum Series A Preferred Stock". The agreement counts, at 29 October, 90,684,914 common shares,
2,876,415 Series A preferred shares, each "convertible into one (1) share", and 7,271,887 shares
issuable on conversion of the convertible notes. *(Ours: (90,684,914 + 2,876,415) × 4.500 =
421,025,981 Marvell shares, before awards and notes.)* Holders of the notes keep the right to convert
"into the Common Stock Merger Consideration".

**Equity awards.** Options, RSUs and PSUs convert into Marvell awards at the ratio, "except that
performance stock units will be converted into solely time-vesting restricted stock units", counted
at "the greater of target and actual performance levels for stock price performance metrics".

**Votes.** Lumentum needs "a majority of the voting power of the outstanding shares" of common and
Series A preferred, voting together. Marvell needs a majority of the voting power at its meeting for
the share issuance, plus approval of a charter amendment "to increase the number of authorized
shares". Both votes come through a joint proxy in a Form S-4.

**Regulators.** The conditions include the HSR waiting period and "certain other required
regulatory approvals", listed in "Section 7.1(c) of the Parent Disclosure Letter"; the 8-K says schedules
"have been omitted". Marvell must accept divestitures and other "Remedial Action", except one "material (in an
adverse manner)" to the combined business, a "Burdensome Condition".

**Outside date and fees.** 1 November 2027, "which may be extended to February 1, 2028, May 1, 2028
and August 1, 2028" if regulatory approvals are outstanding. Marvell pays $5.8 billion if its board
withdraws its recommendation or it takes a superior proposal; Lumentum pays $2.9 billion in the
reciprocal cases; Marvell pays a $3.2 billion "Regulatory Termination Fee" if the deal fails on
antitrust grounds with everything else satisfied. *(Ours: Marvell's general fee is twice
Lumentum's.)* The filed terms carry no deal value, and we compute none: it would rest on share prices.

## What to hold the next filing to

1. AOI's end-2026 line, "over 500,000 pieces" a month, and whether the 10-K repeats it.
2. AOI revenue against $385–420 million, and Data Center against $155.6 million.
3. Capex plus prepayments against $1,109.1 million for nine months, and commitments against
   $928.8 million.
4. The East West Bank term loan: how much of the $170 million is drawn.
5. For Marvell and Lumentum: the S-4, its list of regulators and its background section.

## Run it yourself

[/filings/AAOI](https://evidinvest.com/filings/AAOI) lists the 8-K and the 10-Q, and [/valuation/AAOI](https://evidinvest.com/valuation/AAOI)
lets you run your own valuation on filed numbers. Open the two releases, August's and November's,
and read the CFO paragraph in each; it takes two minutes. Then read the 10-Q's "Trends and Other Matters" section for the
hyperscaler agreement.

Write down the lines you will hold AOI to: 500,000 pieces a month, $928.8 million of commitments,
92% from three customers. Our [Thesis Monitor](https://evidinvest.com/thesis-monitor) reads each new filing against what
you wrote and tells you which of them moved. If you work inside an agent, the same filings are on
the [EvidInvest MCP server](https://evidinvest.com/developers). It is free to start, credit packs from $10, and there is
no subscription.

The revenue was inside the guide. The capacity sentence is the line that changed.

*Sources. Applied Optoelectronics, Inc. Form 8-K of 5 November 2026, Exhibit 99.1 (Q3 2026 results
and Q4 2026 outlook): accession `0001683168-26-008351`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1158114/000168316826008351/aaoi_ex9901.htm)).
Form 10-Q for the quarter ended 30 September 2026, filed 5 November 2026: `0001437749-26-035282`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1158114/000143774926035282/aaoi20260930_10q.htm)).
Form 8-K of 4 November 2026 (credit agreement): `0001683168-26-008310`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1158114/000168316826008310/aaoi_8k.htm)). Form
10-Q for the quarter ended 30 June 2026: `0001437749-26-026278`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1158114/000143774926026278/aaoi20260630_10q.htm)).
Form 8-K of 6 August 2026, Exhibit 99.1 (Q2 2026 results and Q3 2026 outlook):
`0001683168-26-006055`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1158114/000168316826006055/aaoi_ex9901.htm)).
Marvell Technology, Inc. Form 8-K of 2 November 2026, Item 1.01 and Exhibit 2.1 (Agreement and Plan
of Merger): `0001193125-26-442717`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1835632/000119312526442717/d352474d8k.htm)).
Lumentum Holdings Inc. Form 8-K of 2 November 2026 (results): `0001628280-26-068655`; Form 8-K of
2 November 2026 (merger): `0001193125-26-442758`; Form 10-Q for the quarter ended 26 September
2026: `0001628280-26-069615`; Rule 425 communication of 5 November 2026: `0001193125-26-448735`.
EDGAR was checked at 04:30 UTC on 7 November 2026. No analyst estimate, consensus figure, share
price, deal value or call remark appears on this page; our arithmetic is labelled as ours.
Research, not investment advice.*

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