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Written by SmallCapPower.com
POET Technologies Inc. (POETF) acquired DenseLight and BB Photonics last year giving it the technology to address 100G optical telecom, the largest and fastest growing market segment so, going forward, we believe that POET Technologies is in an ideal position to become profitable at the EBITDA level by the second half of 2018.
Investment Thesis
POET enables the performance of light at the cost of copper
Using light to replace copper interconnects substantially reduces energy consumption. Traditional optical solutions have not been cost effective due to the use of multiple individual components. POET integrates electronics and optics on a single chip, significantly improving data center links. POET has developed a revolutionary technology that integrates the optical communications module – optical and electronic components – on a single chip. The complete monolithic integration by POET provides up to an order of magnitude reduction in total power consumption and cost. The attributes of speed, cost, size, and power of the innovative POET platform provides POET Technologies with competitive advantages over other competitors.
Significant opportunity for 100G connectivity
Given that 100G connectivity continues as the largest, fastest growth aspect of optical telecom, POET Technologies should be able to position itself for future growth. There is an attractive market opportunity with 45% CAGR in wide area networks and 15% CAGR in use of 100G in datacenters.
Source: Light Counting via POET Technologies, July 2017
