Applied Optoelectronics, Inc. (AAOI) Product Quality Issues Affect its Financials

According to a filed complaint against the company's officers and directors for violations of the Securities Exchange Act of 1934, on September 27, 2018, an analyst with Loop Capital Markets downgraded the company's stock, reporting that Applied Optoelectronics was experiencing product quality issues with lasers in certain transceivers, and lowered gross margin and revenue expectations because he anticipated the company would start procuring lasers externally through 2019. On this news, the share price fell more than 9% on September 27, 2018.

Then, on September 28, 2018, Applied Optoelectronics cut its guidance for the third quarter 2018, announcing it had identified an issue with its lasers, and that as a result, it would suspend shipments of certain transceivers. On this news, the stock price fell $3.70 per share, or more than 13%, to close at $24.66 per share on September 28, 2018.

Applied Optoelectronics, Inc. (AAOI) Shareholders Have Legal Options

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