action_or_reaction: I found myself confused with terminologies, so just to clarify: When poet says POET Announces Design Win, Design Win means an engagement to sell a specific product to a particular customer within a defined program or project.

Design win means that the product of one company (here: POET Technologies) becomes part of a (to be developed) product of another company (here: FIT). As yesterday’s press release says: “POET and FIT have entered into a collaboration to develop 800G and 1.6T pluggable optical transceiver modules using POET optical engines.” This means: FIT will develop 800G and 1.6T pluggable optical transceiver modules, and POET optical engines will be an essential part of it.

These optical engines will be specifically tailored to the requirements of the customer’s product. This requires development work that will take until Q3/2024: “POET expects to complete the design of the optical engines for FIT by Q3 2024 and start optical engine production at its joint venture, Super Photonics Xiamen, by Q4 2024.” This is linked to NRE.

I assume that the entire contract is not paid in full at the end, but that milestone payments have been agreed, e.g., a certain amount at the conclusion of the contract, a further installment upon acceptance of the design, etc.