POET Technologies Reports Third Quarter 2017 Financial Results
November 13th, 2017
SAN JOSE, CA, November 13, 2017 – POET Technologies Inc. (the “Company” or “POET”) (OTCQX: POETF; TSX Venture: PTK), a developer and manufacturer of optical light source products for the sensing and data communications markets, reported its unaudited condensed consolidated financial results for its third quarter ended September 30, 2017 (Q3 2017). The Company’s unaudited condensed consolidated financial statements as well as the Management Discussion and Analysis for Q3 2017 have been filed on SEDAR.
Third Quarter and Recent Highlights:
- Revenue was US$715,420
- Gross profit was US$367,233, or 51.0% of sales, compared to 63.0% in the third quarter of 2016
- Ended the quarter with cash and short-term investments of US$7.5 million
- Appointed Jean-Louis Malinge to the Board of Directors
- Introduced new products from DenseLight, including distributed feedback (DFB) lasers for the 100G datacom market, avalanche photodiodes (APDs) for the 10G telecom markets, and a new family of narrow linewidth (NLW) lasers for the distributed acoustic sensing (DAS) market
- Since May 2017, the Company has been granted 6 patents and submitted 2 new applications, bringing the total granted to 57 and the number of pending patent applications to 8
- The integrated twin waveguide PIN detector under development has tested at bandwidths exceeding the requirements for a 25 Gbps data rate needed for the Company’s on-schedule launch of its Receive Optical Engines in mid-2018. Receive Optical Engines combine a Quad Channel PIN detector and a Quad Channel De-Mux to form a critical piece of the Receive Optical Sub-Assembly (ROSA).
Revenue in the third quarter of 2017 was US$715,420, compared to US$648,382 in the second quarter of 2017 and US$861,545 in the third quarter of 2016. Revenue primarily reflects the sale of DenseLight photonic sensors for test & measurement applications. Gross margin was 51.0% compared to 50.5% in the previous quarter and 63.0% during the third quarter of 2016. Third quarter 2017 net loss was US$3.6 million, or ($0.01) per share, compared to a loss of US$2.8 million, or ($0.01) per share, in the second quarter of 2017 and a loss of US$2.8 million, or ($0.01) per share, in the third quarter of 2016. The third quarter 2017 loss included non-cash, stock-based compensation of US$1,088,170 and depreciation & amortization of US$559,334. Non-cash stock-based compensation and depreciation & amortization in the second quarter of 2017 were US$159,783 and US$558,919, respectively, and US$1,019,970 and US$550,420 in the third quarter of 2016.
Dr. Suresh Venkatesan, Chief Executive Officer of POET, commented, “Our results in the third quarter continue to reflect our commitment to invest a majority of the Company’s engineering and production resources in new product development during 2017. As planned and stated last quarter, we are currently sampling our DFB lasers, APD devices and NLW lasers with customers in China and Europe. There is solid demand for these DFB lasers in both the silicon photonics and test & measurement markets as well as for our newly-introduced NLW light modules for distributed acoustic sensing applications in the oil & gas and rail industries. Additional design, testing and qualification cycles are required prior to generating revenue, and we expect these products to augment our traditional sensing revenue in 2018. There has been an industry slowdown in the 10G GPON telecom market, so we are evaluating alternative sales channels for the APDs.
“We are making good progress and remain on track for a mid-2018 launch of our ROSA optical engine, which utilizes our dielectric photonics platform. We have recently tested the bandwidth of our 25G PIN detector at a bandwidth that exceeds the requirements for 25Gbps channel rates. Combining four PINs into a single device, or QuadPIN, will allow the optical engine to receive at a minimum speed of 100 Gbps. Additional engineering, optimization and product qualification are required to complete the development of the ROSA optical engine.”
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 to military applications. 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:
Brett L. Perry
Leanne K. Sievers
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 market potential for its DFB lasers, APD devices and NLW lasers and acceptance by customers; and
- the performance of its mux-demux and QuadPIN device and its ability to complete the development of the optical engine intended for a receiver device on schedule.
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.
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