Zacks report - questionable comments Just listened to the June 30, 2023 AGM presentation. There is no mention of Poet experiencing resistance from module makers, and no mention of little value added. There is mention of the desire to get rid of the long sampling cycle by module makers and for Poet to become a module maker itself. But that last point is not new. The August 2022 presentation indicated Poet wanted to be a module maker.
Zacks:
"POET explained its shift in strategy, citing resistance from module makers to design-in POET optical engines due to the fact that POET has already built so much of the value-added into the optical engine itself, leaving little value-add (and margin) for the module maker. Such a move also eliminates a full design and qualification cycle by the module maker, which can take up to 9 – 12 months before samples are delivered to end users. And finally, it gives POET the opportunity to sell devices directly to hyperscalers and network equipment operators who purchase modules, but not optical engines. POET has tied this effort to build modules into its “China Plus One” strategy to produce optical engines for transceivers and light sources for AI hardware outside of mainland China, which it believes will be a business requirement in the near future, due to increasing restrictions by the governments of both countries."