To  really understand where we are one needs to carefully reconsider Suresh’s  presentation in June at the AGM.  We should be very grateful to Rainer’s for his work in transcribing the AGM and the link to the transcript in the right hand column of Agoracom home page for POET.  But I suspect many had moved on by the time it was produced.  What you will find is a very full and frank explanation of the company’s achievements, description of the companies products offered as well as the bread and butter of the company’s strategic considerations.

Taken in this context Monday’s announcement tells us that a significant number of our key customers (remember that SV was ‘humbled by their interest) have made a firm commitment to that strategy effectively opening a source of revenue to the company from sales and engineering contracts. The company’s plan is working and on time, well! possibly one month behind.

My feeling is that we should not get fixated on SP at this point as the news is heralding what is coming not that it has arrived. Realistically the financial effects of customers approval will not register until Q1 and Analysts screens will simply not illuminate PTK’s growth until that point.  In my view the SP will continue its normal pattern until March. To think otherwise is to invite disappointment.

The key point of the announcement is its confirmation of Management’s strategy. It’s real value to shareholders is down line when other companies turn to POET to resolve what is a fundamental developmental problem in computing which is to speed up internal and external communications, reduce power demands and heat by moving photons around boards and down communication links rather than electrons.

What is in SV’s mind strategically goes far beyond the Interposer, whilst current arrangements with Accelink and SilTerra I am sure are adequate for immediate plans, but significant growth will be required to meet the wider strategic goals mentioned at the AGM.  It is hard to envisage that growth to meet these goals and maintain the capacity to meet what I feel will be ver high demand for such a differentiated product as the transposer.  This could only be met by organic growth and not merger of some kind.

There is much more to come hang on to your shares.

Sula