I've been reading the transcript notes from the last CC to wrap my head around a few things, I found it quite a useful read now that we have more information.

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https://rainerklute.wordpress.com/2015/10/02/audio-transcript-poet-technologies-operational-update-2015-09-30/

12:03 – After joining the company in June, Subhash and I have spent a considerable amount of time taking stock of the technology, the operations, and the business model of the company. We established three priorities at the outset.

12:48 – And as far as the lab-to-fab transition goes, we are on plan to complete this activity by the end of this year. In place are signed MoUs with two epitaxial wafer vendors who are among the world’s premier providers of epitaxial wafers.* We expect to start receiving six-inch epitaxial wafers from these vendors starting October. The initial results are in and we expect to be able to complete the first phase of the transfer over the next month. The transfer is also underway of our proprietary VCSEL fabrication process to our commercial foundry partner**, with first VCSEL and transistor results expected in Q1 2016 and integrated VCSEL and detector components in the second quarter of 2016.

*Epiworks & ?
**Wavetek

13:36 – Priority two is to refine the business model and chart a new go to market strategy. We believe that it is imperative that the company converts its technology leadership into product leadership. Now what do I mean by that? The current business model for the company is tied solely to technology licensing, and the operations of the company from milestones to hired skills have largely reflected that.

14:02 – For process and device intellectual property, this is a very difficult business model to gain entry with into the market. The burden of proof is always on the process and device, and any potential licensee will want to see these processes and devices working reliably in end-market segments. Thus in order to establish and promote a licensing model, it first becomes imperative to showcase the capabilities of the technology platform in a real product, use in real applications, and solving real problems for customers.

14:36 – To that end, we are pivoting the business model of this company from a purely licensing model to one that has its underpinnings and products, augmented with judicious licensing. POET as a platform has a broad application space, and while we initially will be focused on short-reach data communications, we expect licensing to play a role in potential adjacencies in the medium term.

15:01 – Priority three is to continue to carefully manage and leverage our strong balance sheet. We will be opportunistic about adding technology, channel, and sales muscle to the company and be in a position to apply for a fully-fledged NASDAQ listing application when we feel it is in the best interest of the company and its shareholders.

15:24 – While we are still refining our revenue model, we believe it will be a combination of product sales and licensing, of organic growth and acquisition, and of direct and indirect sales. You can expect us to focus first on productizing proprietary technology that has the potential to become an industry standard, and secondarily on licensing non-core solutions that can provide a steady stream of ancillary revenue. And you can expect us to penetrate and radiate within both enterprise customers and strategic partners. Indeed you can also expect us to go to market primarily with partners, both in sales and manufacturing.

18:11 – Geoff Taylor: Thank you, Suresh. These are exciting times for the company, as we start applying our cumulative knowledge and IP to real product demonstrations. Indeed, we are now poised to deliver to the market our vision of low-cost and low-power optical interconnects.

18:29 – There are three critical devices that form the basis of our initial prototypes: the n-HFET, VCSELs – that’s Vertical Cavity Surface Emitting Lasers – and detectors, fabricated on the same epitaxial growth. We have previously demonstrated and announced world-class n-HFETs, through our partnership with BAE. I would like to announce some significant milestones achieved this past quarter on the VCSELs and detectors.

18:58 – First, we have recently in this quarter successfully demonstrated functional 980 nanometer (nm) VCSELs utilizing the POET epitaxy and POET process at the UConn labs. Improvements in epitaxial quality have shown a three-times improvement in critical performance parameters of the VCSEL, and we expect to maintain that improvement trajectory over the next quarter through further improvements in epitaxy and processing in order to achieve commercially acceptable specifications.

19:30 – Even more important is our first demonstration of small-signal modulation of our unique Digital Opto-Electronic Switch – acronymed DOES – lasers. We have achieved modulation frequencies presently of up to 8 GHz which readily enables 10 gigabits per second (Gbps) operation of the transceiver products. As we improve the VCSEL characteristics over the coming quarter we expect to further improve our small-signal frequencies’ response as well.

20:05 – Secondly, and this is a significant change for us, the VCSEL transceiver market today is centered at 850 nm wavelength. The quickest path to validation and adoption of any new technology is to prove its benefits in existing sockets. To that end, we had now focused our internal activities this quarter to assess the scalability of our platform to the 850 nm wavelength. We had demonstrated that critical pieces of the POET IP are scalable to 850 nm. And this is really good news, because it enables the company to participate in the large existing market at 850 nm. While we will be developing both 980 nm and 850 nm platforms in parallel, we will now be shifting our short-term focus to realize 850 nm.

21:01 – And finally, a critical case of any optical transceiver link is the detector on the receiving end. We had demonstrated basic DC functionality of the POET detector this quarter with extremely encouraging sensitivities. The POET detector is unique in that it integrates transimpedance amplifier, commonly called the TIA, within the detector, thereby enabling significant system power and cost savings. Over the next quarter we will be developing and validating our large-signal modulation capabilities of both our laser and our detector. I am pleased with the progress the team has demonstrated and we are building all the proof-points necessary to provide the market with a disruption it demands. – Suresh.

24:04 – A few words on the operations. The transfer of technology from a lab to commercial epitaxial vendors is progressing well.* Anytime one transfers technology from a research environment to a manufacturable and scalable infrastructure, there are things that have to be changed in the process and this takes a few learning cycles to dial in. We started the transfer in August and we expect to complete the first transfer of the epitaxial stack in October. We are encouraged with the early positive results we have seen from external epitaxial wafer providers and this is beginning to validate the scalability of the developed processes and IP.

*Epiworks
Epi Vendor"s" = UMC or "?"

24:46 – We are often asked about our relationship with BAE, especially since we have not talked about them in some time. BAE has been a great partner to POET over a number of years. We transferred the n-FET process flow to BAE last year and were able to demonstrate excellent p-HEMT devices and characteristics at BAE on six-inch wafers. However, BAE lacks capability for VCSEL manufacturing that the POET platform categorically needs. When we joined the company, we actually started an evaluation of alternative partners that would have these capabilities in a foundry manufacturing environment. We therefore announced our initial foundry partnership with a commercial VCSEL foundry as they had the three things we were looking for:

1. Six-inch processing**
2. VCSEL-fabricating experience**
3. Electronics experience through their own MMIC business.**
   
   UMC Wavetek(partner) and/or Anadigics("non-partner")?**

25:48 – Our specific milestones over the next few quarters are:

• In the fourth quarter of 2015, initiate wafer start at our foundry partner and establish a source of commercial epitaxy.*
• In the first quarter of 2016, demonstrate first fully externally processed wafers for both VCSEL and FET functionality.
• In the second quarter of 2016, demonstrate integrated 10 Gbps transmit-and-receive component that incorporates the FETs, VCSELs, and the detectors integrated together.
• In the fourth quarter of 2016, provide functional prototypes to the market.
  
  Epiworks*
  
  
  
  28:38 – But for now as shareholders ourselves, we think of POET as having four distinct attributes:
• Having envisioned and foreseen the market’s requirements for low-cost and low-power optical components, POET has developed highly differentiated and defensible IP, optimized by a balanced product and licensing business model.
• POET is a newly emerging market entrant that is strategically architecting a partner and customer base that has the scale, breadth, and influence to impose an industry standard.
• POET is led by a highly credentialed management and board with a track record of generating profitable growth.
• And POET is tightly-focused solver of the hardest most important problems in the competitive landscape. The largest of the data centers and OEMs are demanding new solutions to break traditional cost and power curves, and POET is positioning itself with the right answer.