Applied Optoelectronics (NASDAQ:AAOI) stock is climbing higher on Friday after the company revealed a $150 million asset sale.
This has Applied Optoelectronics agreeing to sell its manufacturing facilities in China to Yuhan Optoelectronic Technology. These facilities and assets are connected to the company’s transceiver business.
Applied Optoelectronics notes that the funding will allow it to focus on other parts of the business, including opportunities with higher margins and higher growth. All of this is part of the company’s plan to become profitable.
Dr. Stefan Murry, CFO and CSO of Applied Optoelectronics, said the following in a news release:
“We intend to use the majority of the proceeds from the sale for increased investments in the business, particularly in our fast-growing CATV business and some of our newer laser-related products.”
AAOI Also Launched a New Brand
There’s more Applied Optoelectronics stock news today; the company just launched Quantum Bandwidth, a new brand name that covers a range of products. These include the company’s Cable Plant Signal Generator, Broadband Digital Access shelf module, Extended Spectrum Line Extender Amplifier and more.
Today’s news has AAOI stock seeing heavy trading. More than 41 million shares are on the move as of this writing. For perspective, the company’s daily average trading volume is closer to 261,000 shares.
AAOI stock is up 35% as of Friday afternoon.
Investors looking for more of the latest stock market news are in luck!
InvestorPlace has all of the hottest stock news traders need to know about for Friday! A few examples include what has shares of Esports Entertainment (NASDAQ:GMBL), Uber Technologies (NYSE:UBER) and Intellia Therapeutics (NASDAQ:NTLA) stock in the news today. You can learn all about these topics at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
