Re: Phase 1...then....Phase 2
in response to
by
posted on
Feb 08, 2019 08:18AM
Semiconductor Manufacturing net profit margin as of September 30, 2018 is 4.06%.
https://www.macrotrends.net/stocks/charts/SMI/semiconductor--manufacturing/profit-margins
Dash the net margins that POET is expected to realise are going to be pretty extreme as the optical engine is the most important cog in tranceiver. And they will have a lot flexibility to make the fabs that participate very happy and very motivated. Apart from anything else and who the new owner of DenseLight will be is that POET will have the ability to improve their historical margins which provides a huge motivation for them to invest money in new equipement and expand the plant capacity.
The whole reason why POET is making this move is that the Optical interposer represents a breakthrough and they have to make deals to increase capacity to supply a demand that is expected to increase very quickly and they need to capture it with as many products as they can as quickly as they can.