POET cuts losses as revenue grows 17% in Q1

For first-quarter 2019, 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$1.8m, up 17% on US$1.6m last quarter and 2.7 times the US$0.7m a year ago, due primarily to the recognition of higher non-recurring engineering (NRE) revenue.

Results include DenseLight Semiconductor as a discontinued operation (effective 1 January), after the firm on 3 February signed a letter of intent (LOI) to sell the Singapore-based subsidiary. All financial data hence represent the combined results from both continuing and discontinued operations.

Gross margin has risen further, from 60% a year ago and 67% last quarter to 80%.

Net loss was US$2.7m ($0.01 per share), cut from a net loss before taxes of US$3.6m ($0.01 per share) last quarter and US$3.2m ($0.01 per share) a year ago.

Until the time of the sale of DenseLight, the firm intends to continue to report revenue within the DenseLight operation since the bulk of its R&D, production and sales activities are conducted there. The operation of the firm as a single integrated unit also ensures that DenseLight’s activities will continue to be directed by POET toward the completion of remaining developments connected to POET’s Optical Interposer technology. After the sale, DenseLight is expected to remain a development resource, key supplier and strategic partner in the expansion of applications and product sales for POET. POET intends to remain focused throughout the sale process on gaining customer interest, NRE support, qualification and product sales to customers for Optical Interposer-based solutions.

Additionally, after the end of Q1/2019, on 3 May POET completed the second tranche of its private placement of convertible debentures for gross proceeds of US$1.1m (C$1.5m), for which the firm paid about US$57,200 (C$76,600) in brokerage fees related to the closing. This brings the total capital raised to about US$2.5m (C$3.4m). Proceeds from the second tranche of convertible debentures are expected to be used to fund operations pending completion of the sale of DenseLight. Definitive agreements for DenseLight’s sale are being drafted and are expected to be completed by 30 June. Key terms (including the identity of the buyer) will be disclosed in the Notice to Shareholders for the Annual and Special Meeting to be held in Toronto on or before 15 August.

POET expects to continue to solicit interest from potential subscribers for additional tranches of convertible debentures over the coming months. Any subsequent tranches will be subject to approval by the TSX Venture Exchange.

See related items:

POET’s annual revenue grows 39%

POET announces bridge financing exceeding needs till DenseLight sale

POET receives US$26–30m offer for DenseLight subsidiary

POET reports Q1/2018 results

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

POET completes acquisition of DenseLight

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