Revenue Potential for this product?

Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Hike

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Revenue Potential for this product?

posted on Jan 18, 2023 09:27AM

POET will send beta samples to ADVA in the first quarter of 2023 and production is expected to begin in the second half of 2023. POET will likely start with hundreds of units per month in 2023 and then ramp up to thousands of units in 2024.

The end users will be companies in the datacom and telecom industries. According to LightCounting’s April 2022 report, the market opportunity for 100G CWDM4 and LR4 pluggable transceivers will continue to remain strong at an average of $700 million per year from 2023 to 2027. ADVA’s MicroMux™ Quattro is positioned to secure a share of that market.

So tell me if I am on the right track here? The big revenue ramps in 2024. $700 million market for what ADVA will be selling. Let's say the capture 5% of that market. $35 million in revenue for this product alone to ADVA. Let's say 50% margin? $17.5 million in profit to ADVA and $17.5 million in costs? Say POET's product is half of that cost. That's $9 million in sales to POET? At 50% margin lets say...so $4.5 million in profit?