To really understand where we are one needs to carefully reconsider Suresh’s  presentation in June at the AGM.  We should be very grateful to Rainer’s for his work in transcribing the AGM and the link to the transcript in the right hand column of Agoracom home page for POET.  But I suspect many had moved on by the time it was produced.  What you will find is a very full and frank explanation of the company’s achievements, description of the companies products offered as well as the bread and butter of the company’s strategic considerations.

Taken in this context Monday’s announcement tells us that a significant number of our key customers (remember that SV was ‘humbled by their interest) have made a firm commitment to that strategy effectively opening a source of revenue to the company from sales and engineering contracts. The company’s plan is working and on time, well! possibly one month behind.

My feeling is that we should not get fixated on SP at this point as the news is heralding what is coming not that it has arrived. Realistically the financial effects of customers approval will not register until Q1 and Analysts screens will simply not illuminate PTK’s growth until that point.  In my view the SP will continue its normal pattern until March. To think otherwise is to invite disappointment.

The key point of the announcement is its confirmation of Management’s strategy. It’s real value to shareholders is down line when other companies turn to POET to resolve what is a fundamental developmental problem in computing which is to speed up internal and external communications, reduce power demands and heat by moving photons around boards and down communication links rather than electrons.

Finally as a reminder of what’s in SV’s mind I’ll quote from his AGM presentation

the platform itself has a broad range of applications. Of course our key focus has been in data centers, data communication, and telecommunication. I think that will remain our focus over the next year. But when it comes to high-performance computing, multi-channel applications, automotive for LIDAR applications, industrial fencing, it’s got a broad range of applications. Wherever you use photonics chips and you want a low-cost, or high-performance, or solid-state configuration, this platform has applicabilities there. And that’s true for space, it’s true for automotive.

There’s much more to come. I’m satisfied that preparations for the transposer in terms of process and commercialisation are in with SilTerra and Accelink are in hand but growth will be a major challenge for our management as new products move up the pipeline.

Sula