It is but little surprise that today’s news release has had minimal effect on share price up to this point. It will not be lost on most readers to this forum that interpreting what has been just announced is difficult and, perhaps, uncertain at best. If we find it difficult, think of the wider investment world.

However, here is my take. I believe we have been told about aspects of the manufacturing processes involved in making the layers required for microchip production. I am aware that in the production of microchips layers of molecules are attached to a substrate on which circuitry, transistors etc. are printed. This has been achieved at 100nm and now has been achieved at 40nm. We are told of critical layers have been successfully achieved and this will enable the preparation of these microchips to produce the circuitry required according to a pre-prepared design (the PDK). The news is that this has been successfully achieved and they are moving to the preparation of items required for POET chips e.g. Vertical Cavity Surface Emitting Lasers (VCSEL) and a ring oscillator (a type of sophisticated clock to control timing in a chip) at 100 nm and, presumably, to achieve this at 40nm later.

In other words, they are proceeding, on time, with the stages announced in the Corporate Review, that are required for the testing and production of microchips. They have achieved the layering essential for their production. It is a statement that all is on course, as expected. Actually, I believe they are well ahead on this but cannot yet say so.

I also take the view that the news release is likely to be the first in a series of releases over the coming weeks which will involve management changes, further technical gains and, later, revenue. This, together with teaser adverts, announced board changes and increased income bodes well. I believe it all very positive. I express all this as an opinion because I have been obliged to “read between the lines”. If I have to do this, it is no surprise that investors are not buying shares in their millions.

David