Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Message: See you in 2020, the Year of the POET

Oz,

Thank you for reprinting this years AGM transcript. I have read it before but after reading it again it answers so many questions that have been circulating on here the past two days. All please look through it again. It really does cover product development and market approach. 

I myself am looking forward to the individual component qualifications at or near years end along with the sencond tranche payment. And then the fully assembled prototype engine to be qualified by our undisclosed tier 1 company in the first half of 2020. 

you’ve got to earn the right to be lucky. The market moves out, ok that’s fortuitous, but we have to do what we needed to do so that we’re still on track on penetration and adoption. We believe, all-in-all it’s been a productive year of development. We have systematically de-risked various aspects of the technology on the interposer, the assembly, and on the active devices. There’s still some work to be done, but we expect to complete much of it this year, in to the early part of next year where we get into serious optical engine assembly. 

 

51:53 So our focus continues to be to complete the component development that we’re working with our partner on, and we need to ensure that… so far we’ve been able to meet their expectations and requirements. Some on time. Some slightly delayed. But still the customer is engaged: they’re pulling. And that’s our focus. So in the first half we will take these components that are completed—and we expect to complete all of them by the end of the year—and start assembling them into full engines. I think I’ve explained to you now what a full engine is versus a component capable of an interposer or full engine is. And that’s the development that we’re doing concurrently. Our expectation is that when a successful engine is developed it opens the door to multiple other “?” engagements. There are folks that we know that will want to see that and engage.

 

53:00 So that is an important part “? of the year for us?... the first half of 2020, where much of this gets integrated in a joint-development manner with customers. That allows us to get into—as Dave mentioned—early production in the second half of 2020, which is what we projected last year in terms of market timing and market windows. I would say the trajectory of 2019, for me, has been our best year in terms of vision, strategy, execution, retiring risk. I think there’s been a lot of chatter on Agoracom about the fourth terminal …So that’s what we’re doing, we are systematically exposing all aspects of manufacturing the interposers to exercise and insure that there’s nothing there that’s going to bite us and that’s what we call retiring risk. And we believe we’ve done that through much of 2019. 

 

54:08 So in summary then, we’re establishing a leadership position in chip-scale photonics. We know it’s disruptive. It’s protected. And we’re developing it in the context of a platform. We’re well positioned to participate in high-growth segments. We continue to validate the low-cost “?” that this technology has. Everything that we want to do is wafer-scale. And so we want to make sure that any new technology elements that we need to add to the platform has to be done at wafer-scale so that we maintain that cost structure. We are executing on a fab-light strategy that does transform our financial needs and allows us to make the investments that we have honestly not been able to make over the past year on the interposer. And we do have strong customer pull from one of our tier-1 industry players. And we would expect more, because the technology is disruptive. If we are able to validate our engine assembly piece, which is our critical milestone over the next six months, we have no doubts that there are going to be some other engagements that add to the NRE pool that we expect in the first half of 2020. So that’s what I have to share with you today. 

I believe there is a stigma associated to the stock because of past relationships and it reflects in the SP and its exaggerated. Read the AGM again and you will feel more confident going forward. 

Best to all

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