Babaoriley is, of course, quite correct in questioning our assumptions on this technology. The value of this company and the share price will be dependent on the take-up of the technology. Ultimately, the company has to license access to the design and manufacture of a microprocessor. It is claimed it will be much faster than any Silicon microprocessor once it miniaturisation is complete. It will consume less power and it will be cheaper to manufacture. We cannot guarantee this will happen, but it is increasingly likely to be so, we will know over the next few months.

The next question will be: will other companies take up this microprocessor, in large numbers, to overtake and possibly replace Silicon microprocessors? This is a highly speculative assumption but within the bounds of possibility; it will take longer to decide, perhaps a 2-year period after the initial production of a 40nM microprocessor. By such a time, we will all have a clearer idea of what the technology industry think of this. I suspect there will be a gradual rather than an avalanche take-up. It is also likely that simple, cheap Silicon microprocessors may be around for some while because they do a perfectly adequate job.

A few minute’s thought about future technology raises many points. Here is one: in a recent survey, reported in the UK's "Daily Telegraph" newspaper, it was claimed that the number one area for improvement in current mobile technology was battery life. It is certainly my greatest frustration and I have seen similar reports from other countries. Additionally, when dealing with mobile technology, all information is transferred to the recipient by reading a screen or listening to the information transfer. There is no faster way of doing this. Sending information is fastest by keyboard typing or speaking directly by phone. So the limitation of all technology is human speed of processing which will not change for the foreseeable future. In my view, current technology does this very well and a faster microprocessor is unlikely to help.

Thus, the greatest advantage, in the short term, for POET in mobile technology is its very significant lower power usage. I imagine that offering a weekly battery recharge as opposed to daily, as a major and highly desirable innovation. All the more so if reduced space occupation within the phone, by the functional integration offered on a single microprocessor, allows more room for a larger capacity battery.

Other features are possible later because of the processor's ability to use infrared , laser and UV technology and I am hopeful of innovation, not possible in Silicon, will increase sales very significantly. Outside this is the need for much faster processing in a whole host of industries which have been named previously. This improvement will slowly develop over the years to come and not in avalanche fashion.

Thus, I suggest, it is mobile technology that will benefit most rapidly from the introduction of a low power and fast processor; other developments may be slower but will arise. If I am right, we will know in the next few quarters. As mobile technology is a gigantic world-wide market with 10’s of billions valuation, I see the opportunity for large profits, a large company valuation and hence share price, but I am guessing, and note Baba's reservations. What do others think?

David