Shares of Applied Optoelectronics (AAOI) plummeted 13.06% in the post-market session on Wednesday, February 26th, after the company reported a staggering net loss of $119.7 million for the fourth quarter of 2024, despite a 66% year-over-year increase in revenue to $100.3 million.

The massive net loss was primarily attributed to higher operating expenses, which surged by 34% year-over-year to $35.2 million, as well as non-recurring costs and unrealized foreign exchange losses totaling $111.8 million and $0.6 million, respectively.

However, there were some positive developments as well. AAOI's CATV revenue more than doubled sequentially due to a ramp in orders for its 1.8 GHz amplifier products. The company also received a substantial order for its Quantum Bandwidth networking products from a major North American cable operator. Looking ahead, AAOI expects continued improvement in gross margins, driven by manufacturing efficiencies and favorable product mix.