The CATV market is our largest and most established market, for which we supply a broad array of products including lasers, transmitters and turn-key equipment. In 2012, we were the leading provider of optical components and the second largest provider of subsystems to the CATV industry, according to research firm Ovum Limited, or Ovum. Sales of headend, node and distribution equipment have contributed significantly to our growth in recent years as a result of our ability to meet the needs of CATV equipment vendors who have begun to outsource both the design and manufacture of this equipment. While equipment vendors have relied upon third parties to assemble portions of their products, within the past four years certain of our customers have accelerated the outsourcing of both the design and manufacturing of both headend equipment and node equipment to third parties. The shift is due in part to the sophisticated engineering expertise needed to perform this work. We believe that our extensive high-speed optical, mixed‑signal semiconductor and mechanical engineering capabilities position us well to benefit from these industry dynamics.
Leading the World
AOI is a world-leading supplier of diode lasers, photodiodes, and related modules and equipment, manufacturing our devices in our own semiconductor fabrication facility.
Our state-of–the-art semiconductor components coupled with an SMT production line enables us to deliver performance with the fastest lead times at the most competitive cost.
Our entire facility is ISO9001:2008 registered. We have maintained this registration since 2011, and continue to adhere to the principles of constantly improving ourselves and our products.
Bringing the World to Light
We are a leading provider of fiber‑optic networking products. We serve three growing end-markets: Cable Television Broadband (CATV), fiber-to-the-home (FTTH), and internet data centers (Data Center). We design and manufacture a range of optical communications products employing our vertical integration strategy from laser chips, components, subassemblies and modules to complete turn-key equipment. We design, manufacture and integrate our own analog and digital lasers using a proprietary Molecular Beam Epitaxy (MBE) fabrication process, which we believe is unique in our industry. The lasers we manufacture are proven to be reliable over time and highly tolerant of changes in temperature and humidity (delivering millions of hours service), making them well-suited to the CATV and FTTH markets where networking equipment is often installed outdoors.
All three of our end markets are driven by bandwidth demand fueled by the growth of network‑connected devices, that included video traffic, cloud computing and online social networking. To address this increased bandwidth demand, CATV and telecommunications service providers are competing directly against each other by providing bundles of voice, video and data services to their subscribers and investing to enhance the capacity, reliability and capability of their networks. The trend of rising bandwidth consumption also impacts the internet data center market, as reflected in the shift to higher speed server connections. As a result of these trends, fiber‑optic networking technology is becoming essential in all three of our target markets, as it is often the only economic way to deliver the desired bandwidth.
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The FTTH market generally refers to the Passive Optical Networks, or PONs, that telecommunications service providers are deploying. PONs take their name from the use of passive splitters to divide the optical signal provided to each residential user over a shared fiber-optic cable from a service provider’s central office. The equipment in the service provider’s central office is called an optical line terminal, or OLT, and the equipment at the end user is an optical network unit, or ONU. A PON supports significantly greater bandwidth than does the legacy copper wire network, although the connection speed to a user (the “downstream” speed) is higher than the connection speed from the user (the “upstream” speed). In the U.S., Verizon’s FIOS service and AT&T’s uVerse offering are examples of PON deployments, and PONs have been widely deployed in Japan, Korea and selected cities in Europe as well. According to a 2013 Infonetics report, worldwide FTTH subscribers are expected to grow from 57 million in 2012 to 149 million in 2017, representing a CAGR of 21%, with the growth of higher speed FTTH connections among those subscribers being greater than the overall growth of FTTH connectivity.
Over time, the technology used in PONs has evolved to meet the increased bandwidth demand from users. At present, the most commonly deployed PON technology is GPON, or Gigabit PON, which delivers up to 2.5 gigabits per second of data downstream, split among subscribers, and 1.5 gigabits per second upstream. Due to the splitting of the bandwidth among multiple users—often as many as 32—the actual bandwidth delivered to an individual subscriber is far less than the 2.5 gigabits per second supported by the GPON equipment. To deliver more bandwidth to a subscriber, a service provider can reduce the split ratio or change the PON technology. Reducing the number of subscribers supported by a single OLT may be less expensive for modest, incremental upgrades, but may not be the most economical solution to deliver the significant increases in bandwidth needed to support 1 gigabit per second service to the home, as encouraged by the FCC’s Gigabit Challenge.
One approach that does support 1 gigabit per second service to the home connection is WDM-PON, or wavelength division multiplexing PON. Well-proven in other areas of the network for decades, WDM technology enables the transmission of multiple wavelengths of data over a single fiber-optic strand, thus significantly increasing the bandwidth of the physical fiber connection. Due to this significant increase in bandwidth supported with WDM-PON, the cost per bit delivered to a subscriber is lower than that for GPON—at faster connection speeds. In addition to providing more bandwidth, WDM-PON offers a subscriber superior privacy and the service provider better scalability because each subscriber has a dedicated wavelength rather than a shared one.
In contrast with transceivers used in data centers and datacom, which are typically designed for shorter reach applications, telecom transceivers are primarily designed for longer reach and often for broader operating temperatures for outdoor installation, and for other telecom-specific applications such as CPRI.
AOI's telecom product portfolio includes SFP and SFP+ MSA-compliant pluggable modules with data rates up to 10G and utilizing TDM, DWDM, and CWDM for use in transport and wireless backhaul in support of modern LTE wireless networks as well as fronthaul applications such as CPRI and OBSAI. AOI also offers pluggable modules and discrete componenets designed for legacy networks and applications including WCDMA and CDMA.
Lasers for telecom, datacom, and other digital communications applications.
We offer a complete line of highly linear lasers and photodiodes for Cable Television applications
Analog lasers with wider frequency responses for CDMA, W-CDMA, GSM, and PCS antenna remoting and other high-frequency applications.
Low Capacitance Photodiodes for use in 1310-nm and 1550-nm Analog Applications
High performance and high-reliability optical BiDi and triplexer modules for FTTH applications
High performance and high-reliability optical lasers for sensing applications
Quad Small Form-Factor Pluggable (QSFP) Modules
- Compliant with QSFP+ MSA SFF-8436
- Compliant with IEEE 802.3ba-2010
- RoHS compliant
Small Form Factor Pluggable Plus (SFP+) Modules
- SFP+ MSA Compliant
- With or without DDM
- RoHS compliant
Small Form Factor Pluggable (SFP) Modules
- SFP MSA Compliant
- With or without DDM
- Duplex or Simplex BiDi versions
- RoHS compliant
- Low Power Dissipation
- Digital Diagnostic Monitoring Interface
- RoHS compliant
Third Quarter 2017 Earnings Call November 7,, 2017 | Investor Dial-In: (412) 717-9586 | 4:30 p.m. Eastern time / 3:30 p.m. Central time
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