SAN JOSE, Calif., Nov. 28, 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 (PICs) for the data- and tele-communication markets, reported its unaudited condensed
consolidated financial results for the third quarter ended September 30, 2018. The Company’s financial results as well as the
Management Discussion and Analysis for the third quarter have been filed on SEDAR.
Third Quarter and Recent Highlights:
- Revenue grew over 20% over the prior quarter and nearly 27% year-over-year;
- Gross margin increased to 58.3% from 51.3% in the same quarter in the prior year;
- Expanded issued patents to 60, with 12 additional patent applications pending;
- Appointed an industry veteran, Rich Zoccolillo as Senior Vice President of Strategic Marketing and Product
Management;
- Ended the quarter with cash of US$5.9 million; and
- Received its first orders valued at over US$3 million for POET Optical Interposer™-based solutions from leading
global communications companies targeting data communication applications
Financial Summary
Revenue for the third quarter of 2018 was US$907,044 compared with US$752,198 in the preceding quarter and
US$715,420 in the third quarter of 2017. Revenue primarily reflects the sale of DenseLight’s photonic sensors for test &
measurement applications and non-recurring engineering (NRE) revenue. Gross margin for the third quarter of 2018 was 58.3% compared
with 57.5% in the preceding quarter and 51.3% in the third quarter of the prior year. Net loss before taxes in the third quarter of
2018 was US$5,013,759, or ($0.02) per share, compared with a net loss before taxes of US$4,687,492, or ($0.02) per share, in the
second quarter of 2018 and US$3,688,590, or ($0.01) per share, in the prior year third quarter.
The net loss in the third quarter of 2018 included non-cash stock-based compensation of US$1,149,095 and
depreciation and amortization of US$640,517 compared with US$1,063,773 and US$659,820, respectively, in the preceding quarter.
Non-cash stock-based compensation and depreciation and amortization were US$1,088,170 and US$559,334, respectively, in the same
quarter one year ago. Capital investment in plant, equipment and patents was US$1,554,648 in the third quarter of 2018 compared
with US$1,139,259 in the second quarter of 2018. The Company had capital investments of US$65,754 in the third quarter of
2017. At the end of the third quarter 2018 the Company had a backlog of open orders for delivery in the fourth quarter and
subsequent quarters of $903,614. This backlog does not include the orders announced on November 12, 2018, a portion of which
are expected to be recognized during the fourth quarter of 2018.
In connection with the filing of its base shelf prospectus, the Company has estimated that its revenue will
increase materially to a range of US$8 – 10 million for total revenue in the fiscal year 2019 beginning on January 1st. Gross
Margins are also expected to expand as the relative proportion of NRE to product sales increases. NRE is typically higher
gross margin for the Company as existing engineering and operational resources are not allocated to individual projects.
POET’s Chief Executive Officer, Dr. Suresh Venkatesan, commented, “We are making solid progress in
expanding sales of our sensing product lines and improving our development and operational capabilities across the board. We
remain on track for introducing Optical Interposer-based products in the first half of 2019, now to include both
receive-only and transmit-receive solutions. We are most excited about the opportunities resulting from our recently
announced orders from data and telecommunications industry leaders, as they represent significant customer engagements with
meaningful near-term and long-term growth potential. These customers were won over by the benefits of POET’s
Optical Interposer solutions to reduce cost and power consumption while at the same time improving performance. We will
provide increasingly integrated components to these customers, beginning with lasers and detectors on the Optical Interposer
platform, and we expect multiple versions of these components to be included in our customers’ product offerings. Our
ability to deliver disruptive cost reductions to our customers for production contracts, enabled by our innovative Optical
Interposer technology, was key to winning these orders. We believe that we are working with more highly-strategic customers
than ever before, positioning us for growth and the realization of our strategic objectives.”
Business and Technical Update Conference Call
As previously announced, the Company will host a business and technical update conference call tomorrow, Thursday, November 29,
2018 at 8:00 a.m. Pacific Time. The conference call will be led by POET’s Chief Executive Officer, Dr. Suresh Venkatesan, who will
be joined by Thomas Mika, Chief Financial Officer, and Rich Zoccolillo, Senior Vice President of Strategic Marketing and Product
Management. Analysts and investors may join the conference call using the following information:
Date: Thursday, November 29, 2018
Time: 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time)
U.S./Canada Conference Call Number: 1-866-688-4315
International Call Number: +1-409-217-8326
Pass code: 1363666
A live audio webcast and archived replay of the business and technical update conference call, as well as
associated presentation materials will be made available in advance of the conference call in the Investor Relations section of
POET’s website at www.poet-technologies.com.
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
Shareholder Contact:
Shelton Group
Brett L. Perry
Leanne K. Sievers
E: sheltonir@sheltongroup.com
Company Contact:
Thomas R. Mika, EVP & CFO
E: tm@poet-technologies.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 improvements in device cost, efficiency and performance
anticipated with respect to the Company’s approach to integration of devices as well as its expectations regarding progress in
product development and revenue targets. They also include statements regarding expectations for increased revenue and gross
margins in future quarters and for the year, the ability of the Optical Interposer to reduce costs and power consumption and to
increase performance, the incorporation of Optical Interposer based components in products offered by the Company’s customers, and
the ability to deliver solutions on a timely basis that are disruptive in cost, as well as the timing of the distribution of its
third quarter financial results and hosting a business and technical update conference call.
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
