Applied Optoelectronics Inc (NASDAQ:AAOI) has responded to negative claims about its products that have been presented by a research firm called BWS Financial.
Applied Optoelectronics CEO Stefan J. Murry stated recently that the claims by BWS Financial about its products were a misrepresentation of the truth. The company has otherwise maintained a tight seal on its matters. It is currently preparing to announce its Q2 results and has not made any remarks about its business other than general remarks about its product offerings.
“Hamed Khorsand, makes some factually incorrect claims about the role of chromatic dispersion and wavelength stability as it pertains to data center customers’ needs,” stated Murray.
Murray stated that Khorsand’s claim that Applied does not make a type of laser known as “EML.” Khorsand wrote the BWS Financial report that criticized Applied’s technology, particularly chromatic dispersion. The author presented some statements regarding the role of Chromatic dispersion as well as wavelength stability with regards to data center customers. According to the CEO, the firm does in deed manufacture the “EML” laser and it announced the launch of a new EML type laser in March.
A recent statement written by Murray points out that Chromatic dispersion is one of the factors that limit the performance of high-speed optical communication links. He, however, pointed out that its effects are more pronounced depending on the length of the optical fiber and the effects are greater over longer distances. Murray stated that the links are usually shorter than 10 kilometers and in most cases, they range from 500 meters to 2 kilometers. Performance in such kind of distances is not affected by chromatic dispersion.
BWS Financial also reported that Applied’s 40G business has been facing declining sales before the 100G. According to Khorsand, the company’s 40G business is going to lose sales to Amazon.com, Inc. (NASDAQ:AMZN). The latter is reportedly switching its supplier and will start getting its transceiver modules from Fabrinet (NYSE:FN). The author also claims that the company has been shipping the 40G transceiver and has not yet perfected the 100G transceiver.
Applied Optoelectronics stock closed the latest trading session on Thursday at $88.80.
