Market Buzz: Applied Optoelectronics Surges with SoW Deal for Microsoft
- June 21st, 2023
- 464 views
Shares of Applied Optoelectronics, Inc. (Nasdaq: AAOI) surged over 10% in after-hours trading on Wednesday as the company disclosed in a regulatory filing with the SEC that it has entered into a Scope of Work (SoW) agreement with Microsoft Corporation (Nasdaq: MSFT) to provide certain design and assembly services for goods in accordance with Microsoft’s specifications (Goods).
Under the SoW, and according to a time schedule, Applied Optoelectronics will commence the design process for the specified Goods and establish a robust supply chain for manufacturing, assembly, sales, and shipment to Microsoft or its authorized purchasing entity.
The agreement has an initial term of five years with provisions for automatic renewal, highlighting the company's commitment to maintaining a dedicated production line for the Goods and offering a three-year warranty for them.
In after-hours, $AAOI is currently trading at $4.63, up $0.47 (+11.21%).
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