That would be a good question to ask them about how they arrived at their projections. They might have used Gartner industry data, for example, and then low-balled themselves to be realistic since they do not have a track record of sales on their upcoming product lines. Maybe they were using just a 2% rule or perhaps they compared themselves to others in the industry that have launched products for the first time in the past and grew into the brand name companies of today. I'm sure those companies probably had margin sales for new products at 40 to 60% margins until competitive pricing changed their margin rates.  POET's projections might be on an average margin rate as well. It is hard to say, but they must have modeled these numbers after something.

Monolithic