SAN JOSE, Calif., April 30, 2018 (GLOBE NEWSWIRE) -- POET Technologies Inc. (the “Company” or “POET”) (OTCQX:POETF)
(TSX Venture:PTK), a designer, developer and manufacturer of optoelectronic devices, including light sources, passive wave guides
and Photonic Integrated Circuits (PIC) for the data communication and telecom markets, reported its audited condensed consolidated
financial results for the full year ended December 31, 2017. The Company’s financial results as well as the Management Discussion
and Analysis have been filed on SEDAR.
2017 and Recent Highlights:
- Revenue increased 50% year-on-year to US$2.79 million and gross margin expanded to 52%;
- Introduced new datacom and sensing products, including distributed feedback (DFB) lasers for the datacom market and a new
family of narrow linewidth (NLW) lasers for the distributed acoustic sensing (DAS) market;
- Granted 6 patents and submitted another 6 new applications in 2017, bringing the total granted to 57 and the number of
pending patent applications to 12;
- Appointed three highly-experienced members to the Board of Directors within the last seven months: Jean-Louis Malinge, Don
Listwin and Peter Charbonneau;
- Announced the Optical InterposerTM platform, which leverages POET’s dielectric waveguide technology to facilitate
the co-packaging of electronics and optics in a single multi-chip module;
- Successfully demonstrated a high-frequency waveguide integrated PIN Photodiode targeting 100G and 400G optical transceivers
for data center applications;
- Signed a Memorandum of Understanding (MOU) with Accelink for the co-development, qualification and sales of a family of
transceiver products based on POET’s Optical InterposerTM platform;
- Completed a successful “bought deal” public offering in March 2018, resulting in gross proceeds of approximately US10.8
million (C$13.8 million); and
- Entered into a master collaboration agreement with SilTerra, a Malaysia-based semiconductor wafer foundry, for the
co-development of certain fabrication processes and the manufacturing of POET’s Optical Interposer platform.
Financial Summary
Revenue for the full year 2017 increased to US$2.79 million, reflecting higher sales of photonic sensors for test &
measurement applications. This compared to revenue of US$1.86 million in calendar year 2016, which represented approximately seven
months of revenue contribution from POET’s DenseLight subsidiary that the Company acquired in May 2016. Gross margin for the full
year 2017 was 52%, compared with 49% in 2016. Net loss before taxes in 2017 was (US$13.1) million, or ($0.05) per share, compared
with a net loss before taxes of (US$13.4) million, or ($0.06) per share, in 2016. The net loss in 2017 included non-cash
stock-based compensation of US$3.2 million and depreciation & amortization of US$2.3 million. In 2016, non-cash stock-based
compensation and depreciation & amortization were US$4.1 million and US$1.5 million, respectively. Capital investment in plant,
equipment and patents decreased to $1.0 million in 2017 compared to $1.3 million in 2016.
Business and Technology Update
During 2017 the Company began focusing its resources on the development of photonic solutions using a “hybrid” integration
approach, which combines its Indium Phosphide (InP)-based photonics chips and its dielectric-based waveguide devices into a single
package. The company’s approach to “hybrid” integration utilizing the Optical Interposer Platform was borne by the unique
capabilities acquired through its acquisitions of DenseLight Semiconductor and BB Photonics in 2016. This new approach targeted the
same objective, namely the replacement of discrete high-cost passive optical components with lower cost embedded devices and proven
wafer-level semiconductor process and assembly technologies. Using embedded dielectric passive devices and advanced packaging
techniques, POET could lower the cost of data communications transceiver solutions for data center operators and telecom
applications. By late-2017, the Company had successfully validated the potential to dramatically reduce the cost of conventional
transceivers through the wafer scale integration of photonics devices and passive waveguides into a single package, leading to the
announcement of POET’s Optical Interposer platform in January of 2018.
Management Comments
Dr. Suresh Venkatesan, Chief Executive Officer of POET, commented, “During 2017, we made significant progress across
several areas of the business. From a financial perspective, we increased revenue 50% year-over-year with the increased shipments
of light sources for sensing applications. Additionally, we recorded approximately $1.7 million in credits from the Singapore
Economic Development Board (EDB) in support of our ongoing research and development efforts at our DenseLight facility.
“From a technology perspective, we achieved a real breakthrough in designing and demonstrating key elements of
the POET Optical Interposer. It is a true platform technology that is readily scalable for applications in data communication
transceivers that undergo rapid evolutions in standards and generations. It is also flexible enough to address critical
applications in other markets such as automotive LIDAR and high-performance computing. Placing photonic components in close
proximity to data generators like ASICs and microprocessors has been an industry objective for decades. Among the many difficult
challenges, thermal management and reliability are ones that the Optical Interposer platform can potentially address.
“While using the POET Optical Interposer platform for photonics assembly provides thermal management and
reliability advantages, its primary advantage is cost, which is the basis for competition in a standards-driven industry. We
achieve low cost by employing proven semiconductor “known good die” assembly, testing and packaging techniques to the optical
components of the transceiver. Our architecture is unique, allowing us to both manufacture the passive interposer assembly
platform at low cost in a factory that is compatible with mainstream silicon semiconductor fabrication and to place active devices
on this platform without requiring complex alignment and expensive micro-optical components. Further, our waveguides embedded
in the interposer function as multiplexers / demultiplexers, spot-size converters and guides, and are independent of the active
devices that determine the speed of the device. The waveguides for a 100G optical engine are the same low cost as those for a
400G optical engine. Furthermore, there is little incremental cost in adding additional communication channels to the
platform. This is one example of the scalability of the POET Optical Interposer.
“Most recently, we’ve taken additional meaningful steps toward commercializing POET’s interposer technology,
including our announced master collaboration agreement with SilTerra for the co-development of the waveguide manufacturing process
flow, consignment of equipment and entry into a wafer purchase agreement. We did this in order to establish a reliable and
consistent manufacturing resource for the supply of wafers incorporating the Optical InterposerTM devices. We also
entered into a Memorandum of Understanding with Accelink Technologies to become ‘Preferred Co-Development Partners’ on the
collaborative development, qualification and sales of a family of advanced multichannel (100/400G) transmit and receive devices
based on POET’s Optical InterposerTM platform. These strategic engagements with a leading foundry and global supplier of
transceivers represent significant milestones in the commercialization process, as they each position the Company to engage more
credibly in discussions with additional prospective customers.
“We continue to be on schedule to deliver receive optical engine prototypes to Accelink this summer, with our
main challenges to that schedule being the logistics of installing and bringing up new tools and processes at 8-inch wafer
foundry. We are very pleased with the cooperation and support that we are receiving from SilTerra and our equipment
vendors. Beyond the short-term goal of prototypes for receive optical engines, we are working on the more complex transmit
side of the transceiver and look forward to some announcements on that front later in the year. We see a very significant
opportunity in the Optical Interposer platform applied to a number of application areas and vertical markets.”
About POET Technologies Inc.
POET Technologies is a developer and manufacturer of optical light source products for the sensing and data
communications markets. Integration of optics and electronics is fundamental to increasing functional scaling and lowering the cost
of current photonic solutions. POET believes that its approach to both hybrid and monolithic integration of devices, utilizing a
novel dielectric platform and proven advanced wafer-level packaging techniques enables substantial improvements in device cost,
efficiency and performance. Optical engines based on this integrated approach have applications ranging from data centers to
consumer products. POET is headquartered in Toronto, with operations in Silicon Valley, the United Kingdom, and Singapore. More
information may be obtained at www.poet-technologies.com.
ON BEHALF OF THE BOARD OF DIRECTORS
(signed) “John F. O’Donnell”, Secretary
For further information:
Shelton Group
Brett L. Perry
Leanne K. Sievers
E: sheltonir@sheltongroup.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking information” (within the meaning of applicable Canadian securities
laws) and “forward-looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such
statements or information are identified with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “potential”,
“estimate”, “propose”, “project”, “outlook”, “foresee” or similar words suggesting future outcomes or statements regarding an
outlook. Such statements include the Company’s expectations regarding:
- the introduction of photonic transceiver components for the data communications market and the timing of the introduction of
prototype samples and products to customers;
- the performance of the Optical Interposer platform, and the Company’s ability to integrate the various components and
demonstrate that the optical engines meet the required specifications and customer expectations and the performance of the PIN
Photodetector and its usefulness in both 100G and 400G devices;
- the ability to manage development and manufacturing across several companies and geographic regions.
They also include the Company’s expectations with respect to the capability, functionality, performance and cost
of the Company’s technology.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions
which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be
incorrect. Assumptions have been made regarding, among other things, management’s expectations regarding future growth, plans for
and completion of projects by the Company’s third-party relationships, availability of capital, and the necessity to incur capital
and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation,
operational risks in the completion of the Company’s anticipated projects, delays or changes in plans with respect to the
development of the Company’s anticipated projects by the Company’s third-party relationships, risks affecting the Company’s ability
to execute projects, the ability to attract key personnel, and the inability to raise additional capital. Although the Company
believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in
the Company’s securities should not place undue reliance on forward-looking statements because the Company can provide no assurance
that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as
of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and
statements except as required by law.
120 Eglinton Avenue, East, Suite 1107, Toronto, ON, M4P 1E2- Tel: 416-368-9411 - Fax:
416-322-5075
