Applied Optoelectronics Accused of Hiding Loss of Business from Major Customer
According to a recently filed class action complaint, Applied Optoelectronics (AAOI) officials predicted that the company would deliver another record quarter and that its top and bottom-line results would exceed the company’s guidance. Despite the company’s optimistic projections, Applied Optoelectronics officials did not disclose that a major customer was reducing its purchases of the company’s 40G receivers, which would have a severe negative impact on its financial performance. When the company revealed the bad news on August 3, 2017, Applied Optoelectronics’ stock fell by $33.39 per share, or over 34%, to close at $64.60 per share on August 4, 2017. The stock continues to fall, and is now trading at just $38.68 per share.