Applied Optoelectronics, Inc. (AAOI) stock plummeted 12.66% in the pre-market session on Thursday, following the company's disappointing 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, 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.