Applied Optoelectronics (NASDAQ:AAOI) shares jumped as much as 15% in pre-market Thursday trading after the company said it had entered an agreement to provide Microsoft (NASDAQ:MSFT) with “certain design services and assembly services of goods.”

The agreement will last for five years and will be automatically renewed unless terminated.

“The SOW includes clauses regarding the Company’s commitment to maintain the production line dedicated to the production of Goods and the Company’s three-year warranty for the Goods,” the company said.

Applied provides fiber-optic access network products for the cable broadband, internet data center, telecom, and fiber-to-the-home (FTTH) markets.

The company announced yesterday the addition of Steve Pederson as AVP to its Broadband Access team, who spent the last 17 years at Cisco.

Shares of the company are up 120% year-to-date through Wednesday’s close