I listened to today's CC.

Demand remains strong and exceeds what AOI can produce. AOI is severely capacity-constrained due to the need for extra testing while AOI works thru its existing laser supply. Facebook still wants AOI's transceivers and AOI ships them with its own lasers. In 2019 the need for extra testing should go away and the production rate should return to normal.

Facebook has a contract to purchase $125 million of AOI product this year. Because of the temporary laser quality issue and the need for extra testing, AOI now thinks it can supply only $90 million of that.

Rosenblatt's Jun Zhang on the other hand said AOI's laser quality issue seems to have returned. This is nonsense. Obviously he was pulling junk out of a hat. How do analysts get away with this crap, publishing rubbish without checking any sources? The guy needs to be fired.

Meanwhile Zack's Investment Research got it exactly right, saying "the company had to incorporate additional testing procedures in the manufacturing process, which will lead to lower transceivers production in the soon-to-be reported quarter." That is responsible reporting.