Jets911: Do you think that POET would be able to price above the current product price because of the energy savings, smaller size, heat advantage, speed advantage and optical interface or do you think they will have to price below the current products to get market entry?

Good question! I think both pricing variants are possible and both have their pros and cons. The higher-price scenario could be a sensible approach if demand is higher than what POET is able to supply, which might happen in the first phase as long as production is not ramped up enough and market introduction has been very successful. However, we know that in the datacenter cost is everything, so POET might not be able and might not even be willing to enforce a higher price. Even at a lower price,

• POET will have very comfortable margins,
• POET will gain a lot of market share if their product offers better performance, energy consumption etc. etc. at a lower price (aka "eat their lunch"), and
• POET will likely overcompensate the difference between higher and lower price by sheer volume.

So if I had to decide, I'd likely choose the lower pricing, but of course POET has the numbers and can do the proper calculations.