DNWL, you are using a revenue number in your calculation to arrive at $10.40 vs. net income (earnings) for calculating earnings per share.

The actual earnings would likely be noticeably less than the revenue figure you are using. This also threw me off when PC said it during the presentation in London as revenue is not used in the formula. I'm sure a few others noticed this mistake as well.

So you need to subtract the cost of doing business, depreciation, interest, taxes, etc.. and use that number instead of $40 million.

I would still expect high margins with POET so your earnings from $40 million in revenue would likely get you somewhere in the $7-8 range but there are a few too many unknowns at this point to guess what the earnings could be. Again, using a higher P/E will get you back to that $9-10 range anyway but would be interested to know if those higher P/Es are ever applied to companies just starting out with revenues.

Cheers.