0001437749-25-025450
SEC filingRevenue surged 137.9% YoY to $103M, driven by CATV and data center growth, with gross margin expansion to 30.3%.
For the three months ended June 30, 2025, revenue surged to $102.952 million, a 137.9% increase from $43.270 million in the same period of 2024. The growth was driven by a significant recovery in the CATV market and continued strength in data center sales. Gross profit rose 225.9% to $31.162 million, with gross margin expanding to 30.3% from 22.1%, reflecting higher sales of high-margin products and ongoing cost reduction initiatives. Operating expenses increased 31.6% to $47.138 million but declined as a percentage of revenue to 45.8% from 82.8%, indicating improved operating leverage. Net loss narrowed to $9.098 million from $26.115 million, aided by a $5.681 million increase in other income, primarily from government subsidies and foreign exchange gains.
Revenue by end-market showed divergent trends. CATV revenue soared 862.9% to $56.019 million, comprising 54.4% of total revenue, driven by a major network upgrade project by a North American MSO customer. Data center revenue grew 30.4% to $44.791 million, representing 43.5% of revenue, fueled by increased orders for 100G and 400G products from several large customers and a new supply agreement with Microsoft. Telecom revenue declined 18.5% to $1.940 million, while other revenue dropped 72.0% to $0.202 million.
Management expects continued growth in data center products through the end of 2025, based on customer forecasts, and anticipates increased revenue from the Microsoft supply agreement. The CATV segment is expected to benefit from the ongoing MSO upgrade project. However, tariff uncertainties, particularly with China and Taiwan, pose potential risks to costs and supply chain, though the company is actively monitoring and managing these impacts. Strategic priorities include diversifying the customer base and optimizing operations to contain costs.