interposeur said, "... ... It is fine to divest now. But they are not making a penny of profit on DenseLight. The sale could very well be only to get the cash and the investment recovered. ... ... "

interposeur, you may not be aware or recall that Suresh mentioned that you have to have money in the bank (capital) to gain the confidence of global customers' expectations. Essentially, having that cash in the bank gets the ball rolling servicing customer orders.

Also, the sale of Denselight, to me, is a conversion of that asset into cash. It is a liquidity move and it meets Poet's business vision of being fabless. Whether or not the sale of Denselight turns into a healthy or modest profit for the company, it is a cash/investment recovery from expenses laid out to operate Denselight to provide Poet with the cash-on-hand that its global customers expect. There is a cost to service orders and that concern by globl customers had to be laid to rest. Also, Poet with their agreement, with the buyer of Denselight, will be their largest customer. Sure that customer may be using for other purposes as well, but Poet will be their largerst customers.

Monolithic