STOCKS TELEGRAPH

Tag: telecommunications

  • Applied Optoelectronics, Inc. (AAOI) Stock Continues Downward Trend Despite Promising Q2 2021 Guidance

    Applied Optoelectronics, Inc. (AAOI) Stock Continues Downward Trend Despite Promising Q2 2021 Guidance

    Applied Optoelectronics, Inc. (AAOI) stock prices were down 1.31% as of the market closing on July 15th, 2021, bringing the price per share down to USD$7.52. Subsequent premarket fluctuations saw the stock fall by another 5.59%, bringing it down to USD$7.10.

    Weathering the Storm

    With the company having appropriately forecasted market dynamics, its financial reports for the first quarter of 2021 were in line with its expectations. While the data center business reported minor softening, the stellar recovery seen by the telecom market more than made up for it, as did the continued strength of the company’s CATV business. The quarter culminated with a significant backlog of CATV products, which the company expects to facilitate the driving of growth in the second quarter of 2021.

    Financial Improvement

    GAAP revenue for the first quarter of 2021 was reported at USD$49.7, up from the USD$40.5 reported for the first quarter of 2020. The previous quarter reported GAAP revenue in the amount of USD$52.3. GAAP gross margin was up to 21.6% for the quarter, up from the 15.7% reported in the prior-year quarter. Non-GAAP gross margin was up to 24.6% from the 19.5% reported for the first quarter of 2020, down from 27.5% in the prior quarter.

    GAAP Net Loss

    AAOI reported GAAP net loss in the amount of USD$15.6 million for the 2021 quarter, representing a net loss of USD$0.59 per basic share. This is an improvement from the USD$16.8 million net loss reported for the prior year quarter, representing a net loss of USD$0.83 per basic share for Q1 2020. However, this is still up from the USD$13.4 million reported for Q4 2020, coming out to USD$0.57 per basic share.

    Trajectory of Success

    The company anticipates revenues for the second quarter of 2021 to be in the range of USD$51 million and USD$56 million. Based on market dynamics, non-GAAP gross margin is expected to be in the range of 25.5% and 27.5%. Non-GAAP net loss is forecasted to be in the range of USD$3.8 million to USD$5.6 million, representing a loss per share of USD$0.14 to USD$0.2, based on roughly 27.2 million shares.

    Future Outlook for AAOI

    With the pandemic continuing to rage on despite accelerated global efforts towards universal immunizations, AAOI’s investors are looking to the company for strategic decisions or changes in fundamentals to address the persisting adverse market environment. The company is keen to allocate resources towards facilitating meeting its guidance for the second quarter of 2021.

  • Datasea, Inc. (DTSS) Stock Skyrockets Following Announcement of 5G Agreements with Six Chinese Companies

    Datasea, Inc. (DTSS) stock prices soared by 46.4061% some time after market trading commenced on July 14th, 2021, bringing the price per share up to USD$4.2897 early on in the trading day.

    Purchase and Distribution Agreements

    July 14th, 2021 saw the company announce the signing of six purchase and distribution agreements by its wholly-owned subsidiary company, ShuhaiZhangxun Information Technology. The agreements will provide 5G Message-marketing Cloud Platform (5G MMCP) Version 3.0, while further enhancing product availability across China by adding new district partners. 5G MMCP is designed to unify customer and prospect marketing signals in a single view with functions such as precise SaaS value-added services, data monetization, and message marketing.

    Details of Agreements

    The companies that DTSS entered into the agreement with are spread out across Nei Mongol, Anhui, Chongqing, and Zhejiang. As per the agreement, DTSS and its partners will collaborate to capitalize on the exclusive authorization in designated districts in regard to the distribution of 5G MMCP Version 3.0, with access to commissions from sales. In return, the partnering companies will compensate DTSS for the provision of 5G messaging products and services. The total value of the deals comes out to roughly USD$136,940, of which DTSS has received USD$75,796.

    Building on Success

    The company’s research and development team continues its ongoing efforts to advance and consolidate its product offerings, with the constant development proving transformational, with the right execution. Concurrently, the company is continuing the rapid expansion of its distribution network across the country, with its most recent partnerships signaling the success of their strategy.

    Expanding Scope of DTSS

    The company has also reported seeing a surge in demand, as well as increasing inquiries from customers and business partners in regard to 5G MMCP. With the company pushing for the expansion of the scope of commercialization of 5G messaging to be introduced in the Chinese market, the company is keen to work closely with its customers and business partners in order to expand and consolidate its market footprint with a comprehensive marketing plan.

    Future Outlook for DTSS

    Armed with several new collaborative partners, DTSS is keen to leverage the resources at its disposal to continue proliferating the telecommunications market. Current and potential investors are confident that management will be able to allocate resources appropriately, so as to ensure significant and sustained increases in shareholder value.