Hi Poet Investors,

I am very familiar with Lightwave Logic's technology. Rather, I should say, I am up to date on what they have published about their approach. There are amazing similarities to POET and stark differences as well.

The most important difference between them is their advantages with respect to the cost of the transceiver (including the cost to manufacture it and the cost to use it). POET's advantage is the light source can be included on the same chip as the modulator and detector. Lightwave's advantage is it can be applied to CMOS silicon wafers. Many here will already know this debate that rages on in comparing these advantages but fewer probably recognize the similarities.

The most important similarities is the progression stage of these two companies in their Lab to Fab transitions. Both have been at this for over ten years, both have been implying that they have positive results but not saying what the results are, both have hired big names in the industry, both have promised prototype transceivers in the next few months, both are presenting at the PIC conference in March.

While it is tempting to think one of them will steal the show and the other will fizzle out as a result, the truth is probably much less exciting. IMO both technologies will be advanced to proof of concept stage and if they don't dominate this first vertical of optical interconnects for the data center, they will be better positioned to transition to the next vertical. This is really just getting started and there are many opportunities beyond the data center. Making them on commercial scale may be the next logical step but not the final one.

As others have pointed out, there are many other materials in the news lately that have potential as well. Infinera is probably the leader with their InP transceivers, many others are using various forms of lithium niobate, ITO and GaN, as well as graphene, carbon nanotubes and germanium. What distinguishes POET and Lightwave Logic is their apparent move towards the fab with a technology that could potentially save cost in the data center.

Rick