"Build it and they will come."

Is POET Technologies building? Yes, they are busily building the PET/TDK, which will enable foundries to deploy the POET process. Let's see what the news release as of 2014-05-27 says (emphasis by me):

This PET/TDK milestone (MS-12) focuses on devices requiring only the electronic subset of the POET process; PET offers lower cost and simpler process fab options for applications that do not require the full POET optical feature set. The PET/TDK allows the Company to deliver its technology to fab partners and customers, and enable further innovation to integrate both analog and digital functions together - an application that is not possible today using silicon CMOS.

The PET/TDK milestone is progressing well, and as planned. As noted previously, the addition of Daniel DeSimone to the team has allowed this activity to remain on track, while other activities progress in parallel.

Moving PET/TDK forward requires optimizing our process technologies and devices using computer-aided design (TCAD) simulation. Specific TCAD efforts focus on complementary hetero-structure field-effect transistors (HFETs) and bipolar transistors (HBTs). This design basis will support complementary HFET (CHFET), bi-CHFET, bipolar and thyristor device fabrication.

PET-based electronic devices represent a breakthrough in performance and power efficiency over silicon CMOS technologies, both existing today and on the industry roadmap. PET/TDK models will be available to third parties around the end of the third quarter 2014.

So the PET/TDK is crucial to "allow the Company to deliver its technology to fab partners and customers." Without the PET/TDK, they can't.

When will that be? Not before "around the end of the third quarter 2014." When the PET/TDK is ready, it can/will be given to partners/customers. After that, money will come in.

This is in line with what Peter Copetti said in the Midas Letter interview: "We expect the initial NRE revenues could start as early as late this year in early 2015."

The bad news is that the successful deployment of the PET/TDK on a partner's/customer's equipment and the successful production of a test batch of chips might well be prerequisites for a deal. The good news is that we do know that this will work and it is only a matter of time.

So let's be long and strong and not pay too much attention to the daily ups and downs of the share price! Patience™ will be rewarded.

Andrea ("Powered by POET")