Clarity in Company Statements

I find it difficult to accept , unlike stockerO, that the company has not been clear in stating its new strategy – take statement 1 below ; what could be clearer.

For reasons of NDA they cannot speak directly about deals, but for me the absence of direct comment about deals, TRAB, Tony Blevins or the nature our relationship with the fruit company is significant by its absence simply because this cannot be directly disclosed. Personally I simply don’t believe this relationship has evaporated. One has to read between the lines and to make inferences. I am of the opinion that the company has disclosed far more than has been realized in our discussions.

My evidence is the statements extracted from the recently published MD&A and financials explanations as highlighted below (# No) refers to each of the highlighted sections.

Take Statement 1, note (#1) they are talking about the aggressive development of devices.The TRAB was formed to define what devices were to be developed, Tony Blevin was listed as a TRAB member if the relationship still exists the fruit company is also.

Take Statement 2, note (#2) with a view to immediate development, surely this would not be an immediate action unless the TRAB had met to define its strategy prioritizing which devices to develop, presumably more on this In September.

Take Statement 2 (#3) the new word on the block is ‘competitive distinction’ POET not PET is what will distinguish this company’s devices from competitors. Again this is a strategic decision as regards devices and again for me it has the hall mark of what the TRAB was set up to do.

Take Statement 2 (#4) to engage foundries and epitaxial partners signal for me that production is to take place surely this would not be risked without a deal in place.

Extracted Company Statements from recently published MD&A and the explanation of results.

1. Company’s strategy is to continue research towards the expansion of the IP portfolio and the aggressive development of devices (#1) for the POET platform.

2. With an immediate view to commercialization (#2), the Company has continued to mevelop the base process technology necessary to build the complete suite of optoelectronics devices.The new management team is focused on exploiting existing high growth markets where the disruptive power of the POET platform IP provides competitive differentiation (#3).To that end the planned milestones - “PET PDK”, the “electrical 100-nm ring oscillator” and the “50 GHz VCSEL” will be replaced with market relevant and product driven milestones that maximizes the commercialization potential.These milestones will also capture the aggressive lab-fab transition plans being put in place, ensuring that the technology can be commercialized with no additional transfer delays from concept validation to product realization.The Company is engaged in discussions with multiple companies as it finalizes its choice of foundry and epitaxial wafer partners (#4) and has recently signed memorandums of understanding with some of these companies and expects to continue this process.

Conclusions

The conclusions I draw from this analysis is that the TRAB has met, this in all probability involves Tony Blevins since his announcement as a membe of the TRAB.

The strategic decisions made and change in direction and start of aggresive development' of devices signal that approval has been given by a customer or customers who want those devices. Given the Blevin presence on the TRAB this highlights the probability of fruit company involvement. Or themulti Billion $ company flagged at the CIC for serious discussions.

Does this make sense to anyone else? or am I off on a tangent.

sula