POET’s revenue grows over 20% in Q3/2018

For third-quarter 2018, POET Technologies Inc of Toronto, Canada and San Jose, CA, USA — a designer and manufacturer of optoelectronic devices, including light sources, passive waveguides and photonic integrated circuits (PIC) for the sensing and datacom markets — has reported revenue of US$907,044, up 20.6% on US$752,198 last quarter and 26.8% on US$715,420 a year ago. Revenue primarily comprises sales of DenseLight’s photonic sensors for test & measurement applications plus non-recurring engineering (NRE) revenue.

“We are making solid progress in expanding sales of our sensing product lines and improving our development and operational capabilities across the board,” says CEO Dr Suresh Venkatesan. During the quarter, POET increased its number of issued patents to 60 (with 12 additional patent applications pending).

Gross margin has risen further, from 51.3% a year ago and 57.5% last quarter to 58.3%.

Net loss before taxes has risen further, from US$3,688,590 ($0.01 per share) a year ago and US$4,687,492 ($0.02 per share) last quarter to US$5,013,759 ($0.02 per share). However, Q3’s net loss included non-cash stock-based compensation of US$1,149,095 and depreciation and amortization of US$640,517 compared with US$1,063,773 and US$659,820, respectively, last quarter and US$1,088,170 and US$559,334, respectively, a year ago.

Capital investment in plant, equipment and patents has risen further, from just US$65,754 a year ago and US$1,139,259 last quarter to US$1,554,648. POET ended the quarter with cash reserves of US$5.9m.

During the quarter, POET received its first orders (worth over US$3m) for Optical Interposer-based solutions from leading global communications companies targeting datacom applications. At the end of Q3/2018 the firm had a backlog of open orders (for delivery in the fourth quarter and subsequent quarters) of $903,614. This does not include orders announced on 12 November, a portion of which are expected to be recognized during Q4/2018.

“We remain on track for introducing Optical Interposer-based products in the first half of 2019, now to include both receive-only and transmit-receive solutions,” says Venkatesan. “We are most excited about the opportunities resulting from our recently announced orders from data and telecommunications industry leaders, as they represent significant customer engagements with meaningful near-term and long-term growth potential. These customers were won over by the benefits of POET’s Optical Interposer solutions to reduce cost and power consumption while at the same time improving performance. We will provide increasingly integrated components to these customers, beginning with lasers and detectors on the Optical Interposer platform, and we expect multiple versions of these components to be included in our customers’ product offerings,” he adds. “Our ability to deliver disruptive cost reductions to our customers for production contracts, enabled by our innovative Optical Interposer technology, was key to winning these orders,” continus Venkatesan. “We are working with more highly strategic customers than ever before, positioning us for growth and the realization of our strategic objectives,” he believes.

In September, POET appointed Rich Zoccolillo as senior VP of strategic marketing & product management.

In connection with the filing of its base shelf prospectus, the firm estimates that its revenue will increase materially to $8–10m for full-year 2019. Gross margin is also expected to expand as the relative proportion of NRE to product sales increases. NRE typically contributes higher gross margin, as existing engineering and operational resources are not allocated to individual projects.

See related items:

POET appoints senior VP of strategic marketing & product management

POET’s revenue grows 11.7% in Q2

POET reports Q1/2018 results

Almae to co-develop laser modules based on POET’s optical interposer platform for high-speed datacoms

POET partner with 8” silicon foundry SilTerra Malaysia to develop and manufacture Optical Interposer Platform

POET introduces Optical Interposer Platform for co-packaging of electronic and optical components

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