Here is the transcript. Thanks to ITTR.

[2:16, George Tsiolis] Vivek, welcome back.

[2:15, Vivek Rajgarhia] Thank you, George.

[2:20, GT] Today’s press release, POET Technologies Discusses Product Design and Development Center in Shenzhen, China. Now, question: you already have an existing development… design, development, engineering operations in Pennsylvania and Singapore, so what is it about your experience in China, and Asia’s photonic optoelectronics industry, that had you go there for this?

[2:47, VR] Let me just give you some background, perhaps even my experience in the region, in China and Asia, with optical components. I started visiting and marketing optical components—so photonic products for fiber optics—in China and in Asia in 1996, 25 years ago…

[3:09, GT] Wow.

[3:10, VR] …with Lucent Technologies’ optoelectronics product line. So AT&T, which had turned into Lucent—the heritage from Bell Labs—as a leader in photonics at that time. So, I started going to China, and other parts of Asia, marketing and doing the business development. There was no business for us in China, at least at that time. And then, in 1998, Lucent asked me to move to Hong Kong to set up our team to develop the business, grow the business, because we saw a huge market opportunity in the region. And then, after that, as we spun off Hitachi’s fiber optic division to form OpNext, where I was Vice President of Product Marketing and Business Development, also basically started the business for OpNext in China from scratch, from zero. Which, now, OpNext turned into Oclaro and is now Lumentum. And then, more recently, when I was with MACOM setting up the Lightwave unit …also started the business in China for optical products. So, more importantly, my background: I’ve stayed there; I’ve worked; I’ve set up labs there in the past, at least twice. So, all the way from seeding the market to growing the business, I’ve been involved. So I see that as a key potential for us and that’s the reason to set up the business there.

[4:45, VR] Now, George, you asked why Shenzhen and why China? So there are a couple of key points there. We have our technology platform development team in Singapore—that is the original team of POET—and as we sold DenseLight we set up that team that works on the fundamental interposer technology, working with the Fabs and all in the region. And then in Allentown, which is another hub for optical components and communications, we have the team there working on the photonics design, the photonics packaging. But all this needs to be taken and made into a final product: what we call the optical engine. So Shenzhen has been a hub for developing products using photonic technology… making into modules and other types of, what you can call, optical engines for fiber optics. So there are many companies in our field (that) have bases there that they’ve set up, and there’s access to very good talent and skills that we are tapping into to set up the team. And also Xiamen, which is where we are setting up a joint venture, Super Photonics Xiamen Company Limited, is also very well connected to Shenzhen—there’s a high-speed train service—so access to our joint venture is also very important as a location in Shenzhen.

[6:16, GT] Is that center now open in Shenzhen… operational and, if so, how do you expect to ramp up there, because I’m assuming it doesn’t hit the ground at 100%?

[6:29, VR] Yes, so the center is now open. We are building it up. It is functional. We have to grow some of the capabilities, and also are building the team. So we have a small team already that has started there and we are recruiting additional talent. And also this team is starting to work with the joint venture team that is being put into place.

[6:50, GT] Speaking of that… so Super Photonics, the joint venture company being set up with—sorry if I don’t pronounce this right—SANAN.

[7:00, VR] Sanan IC, yes.

[7:03, GT] Sanan IC… why is that important to all this?

[7:07, VR] We have the technology, right? We’ve demonstrated the platform. That the technology is right for productization, which is what we are doing. So we do the design development, but ultimately we need to produce, and reproduce, and manufacture, and scale. I’ve said this before, and I continue to repeat, that it’s highly important for our end customers to see there is a reliable and scalable supply chain for, you know, this great technology, but unless there’s a supply chain that can bring that in a product form to the end customers it doesn’t mean much. So Super Photonics is that platform to bring our product and design, manufacture it in high scale, and bring it to the end customers: to our customers. You need a lot of capital investment to do that and Sanan IC, which is a key partner and a joint venture partner here…

[8:05, GT] They’ve come up with the cash.

[8:08, VR] …is investing, and they are a leader in manufacturing compound semiconductors, so they also have the know-how of how to scale. Also, having a fab there for indium-phosphide makes a virtually vertically integrated model where photonic devices can be sourced from the joint venture partner, Sanan IC.

[8:31, GT] All this isn’t easy… I mean the technology itself aside, we know that’s not the easiest thing in the world… but all this from a logistics point-of-view, it looks pretty complicated… it seems pretty sophisticated, so is this where the appointment of doctor—and I want to make sure I pronounce her name right—Jinyu Mo, the new Vice President, is that where she comes in?

[8:56, VR] Yeah, Dr. Mo is a highly experienced industry veteran. She’s been both on the technology side, the product development side, setting up teams and businesses. Also was a founder of her company, where she was a CTO (chief technical officer) in optical. So she brings together breadth of both technical expertise, as well as business acumen and building teams, to the region. And also she is well known in the industry so also the influence in the industry is there.

[9:30] So, what does it mean… what kind of third-party validation does it give POET, again, because we keep talking about that because it seems like with every press release you’ve got an important validation event going on, that someone like her, who’s got 22 years of experience, spanning several companies—I won’t go over all of those because it’s in the press release, but it’s pretty impressive, including Huawei—what does it mean for someone like Dr. Mo to come to POET, that’s still in its… you know, just entering its growth cycle?

[10:03, SV] So, yeah, that’s another endorsement of the potential. Of course everything is not turned into products and dollars as yet, but the potential and the high likelihood of making that happen has reached a certain inflection point in our progression. That now we can attract top notch talent, have joint ventures with leading companies like Sanan IC.. who have the opportunity to set up a joint venture with pretty much anyone they want, right? So this is a big endorsement, and I do have a firm belief that we do have an inflection point to take our technology platform into a product and turn it into a highly lucrative business for all our investors, many of them are probably listening to this interview.

[10:56 GT] Last question: So with the design development center now set up in Shenzhen, how do you see that center developing throughout the year? Where do you see it by the end of the year in terms of what its going to be contributing to the overall operation of POET?

[11:15 VR] So it will be the leader for us within POET to take our technology platform and all the building blocks.. You know there’s many things, there’s the wafer, there’s the features on the wafer, there’s the attachment of the integration of photonics, the processes of doing that, alignment of fibers... So we have all those building blocks. But ultimately it has to be turned into a product that can be used by our customers. So Shenzhen is already… the team has experience. We’ll attract others with the right experience. And we are going to be rolling out products. So the product roadmap that we’ve shared with our investors at the AGM and also following interviews with you, we’ve talked about that. The likelihood of really rolling those out on schedule, on time, and making it high performance products is really where our team in Shenzhen is going to contribute.

[12:17, GT] I’ve got to assume that that really helps on the business development side. When you’re going into meetings and making presentations with potential customers, to show them that it all ends in Shenzhen and your fully geared up and ready to produce.

[12:33 VR] Absolutely, George. And you’ve hit the nail on the head here. Because we are an engine supplier. We are not a module supplier, or a system supplier. But most of the high-speed optical modules today are made in the China region. So close proximity with customers… You know, working together with customers on a technical level, and design in, the team will contribute. And being there is very important. Having the same culture, language, everything…you know, understanding is going to be key. As well as the joint venture. Again taking our designs to the joint venture, making sure the joint venture is able to successfully produce and ramp to products is also a big help that the Shenzhen team will provide.

[13:20 GT] Vivek let me ask you something. Here we are it’s pretty much just past the halfway point of January. Its January 19th. But it feels like Poet has done at least a quarter’s worth of work if not a half a year’s worth of advance and progress. Is that just how it appears to us on the outside? Or does it appear the same way to you guys on the inside, that POET’s really starting to accelerate its growth phase here. Because that’s what it feels like.

[13:53 VR] Yeah. So, as I mentioned, it’s inflection point. It’s coming. It’s the fruition of several years of hard work that Suresh and the team have been putting together. It doesn’t show up in terms of dollars as yet. But there’s a lot of foundation that had to be developed. We did that. Now, we are starting to see the fruits of that hard work, if I may, and innovation that we’ve been doing, you know. So its an exciting time, because ultimately you want to see the final products and the final success that comes from those efforts. So we are starting to see that. Its all rolling out now I believe.

[14:42, GT] And I can see the smile on your face which is great, right? That’s what these interviews pick up and you can’t see in a press release. So is it safe to assume, Vivek, that so far, so good? And in fact, Poet is exceeding expectations and progress. Everything is pretty much going perfectly as of now. Knock on wood.

[15:02 VR] Yes. You know of course challenges never end. I’ve said this before in your interview, the heavy lifting never ends. But its at a good point in our… a good phase in our business growth here.

[15:18 GT] Vivek, thanks for coming back on. You know this was a smaller press release. It didn’t have the technology detail that we normally have. But quite important in the overall operation of the company and the overall setup to make sure you guys are ready to address the market that you’re going after. So thanks for that and congratulations again on Dr. Mo’s acquisition.. Dr. Mo’s appointment, sorry, to the company.

[15:49, VR] Talent acquisition is a big part of the the team there.

[15:54, GT] And she’s both on the technical side and the business side. So she’s a double threat. She’s a double threat at the end of the day. So congratulations on that. That’s a great.. things like that are what make me, and I can’t speak for investors at home, but I look at and say, “Ok. She’s got a very successful career. She’s been at so many great places. She pretty much has her pick of options I’m going to assume.” She didn’t come hat in hand. I’m sure she had a good four or five options on the table. And when I see that someone of her pedigree, her quality joins POET, that says a lot to me as far as inferring where the company is going. Because she is essentially putting her career on POET.

[16:40 VR] Yeah and you know key talent, key players attract other key talent.

[16:47, GT] Yeah. That’s exactly it. Thanks, Vivek. Really enjoyed having you. And sounds, you know… I guess we’re going to be doing this on a pretty regular basis. So I look forward to when you, and/or the rest of the group come back on for more and more. It looks like its shaping up to be an exciting year for POET.

[17:05, VR] Thank you George. Thank you for making it... enabling us to communicate with our investors. We can’t see all of them, especially with today’s pandemic. I also thank all our investors who are on the call, who are sticking by us. And new investors that are coming in. So thank you.

[GT] Yeah. Well said.