Of course, margins on 100G will shrink and eventually volume would be needed to maintain profitability. But here is where it is different for POET. While others will struggle when that time comes, POET will probably have the best margin as they are likely to have the lowest cost.

At the R&R presentation recently, Suresh slides show that POET will be coming into the market as 100G is more widespreadly adopted. So, even if there are other players, POET can wedge in or more boldly to the point disrupt that space and win more customers.

Then, POET will be at the beginning to take over and lead in the 400G space as their technology is highly efficient in all aspects and scalable. 

The result of all of the above is that POET will be able to maintain robust margins and competiveness and be literally in the driver's seat on the space it choses to compete in.

Monolithic