Applied Optoelectronics (AAOI) stock plummeted 6.31% in after-hours trading on Wednesday, following the company's fourth quarter and full-year 2024 financial results. Despite a 66% year-over-year increase in Q4 revenue to $100.3 million, driven by strength in its datacenter and CATV businesses, AAOI reported a staggering net loss of $119.7 million for the quarter.

The significant net loss was primarily attributed to higher operating expenses, non-recurring costs, and unrealized foreign exchange losses. Operating expenses surged by 34% year-over-year to $35.2 million, while non-recurring expenses and unrealized forex losses totaled $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.

For the first quarter of 2025, AAOI provided guidance for revenue in the range of $94 million to $104 million and non-GAAP net income/loss between a loss of $3.6 million and breakeven. The company remains optimistic about the long-term demand drivers for its datacenter and CATV businesses and plans to ramp up production capabilities to meet anticipated rising demand.