TORONTO - POET Technologies (OTC:POETF) Inc. (TSX Venture: PTK; NASDAQ: POET), a company specializing in the integration of electronic and photonic devices, has announced a partnership with MultiLane Inc., a provider of data center interconnect test solutions.
The collaboration aims to develop advanced 800G pluggable transceivers, with plans to extend to 1.6T and 3.2T in the future. These transceivers are expected to offer cost and power efficiency improvements for AI and cloud data center markets.
The joint effort is set to address the growing need for scalable hardware components, with an initial focus on 800G modules that integrate digital signal processing (DSP) and Linear Pluggable Optics (LPO) variants. According to Raju Kankipati, POET’s SVP of Product Management, the partnership will accelerate the design process, enabling the company to meet market demand more effectively.
MultiLane’s CEO, Fadi Daou, expressed enthusiasm for the collaboration, highlighting the company's expertise in high-throughput testing and its contribution to reducing product development cycles.
The collaboration is poised to leverage POET’s Optical Interposer technology, which aims to reduce the cost and complexity of manufacturing photonic circuits. The market for 800G transceiver modules is currently valued at approximately $750 million and is expected to reach $1.7 billion by 2027, according to LightCounting.
Samples of the pluggable transceiver modules resulting from this partnership are expected to be available in late 2024. This news is based on a press release statement from POET Technologies Inc.
InvestingPro Insights
In the wake of POET Technologies Inc.'s announcement regarding their partnership with MultiLane Inc. to develop advanced transceivers, it's essential for investors to consider the company's financial health and market performance.
According to InvestingPro, analysts are forecasting sales growth for POET in the current year, which could be an encouraging sign for those interested in the company's growth trajectory.
Still, it is important to note that POET Technologies has been facing challenges as well. The company has been burning through cash quickly and is not expected to be profitable this year. This is reflected in their negative P/E ratio of -2.70 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at -3.15. The company's valuation also implies a poor free cash flow yield, which is a concern for potential investors looking at the company's ability to generate cash.
On the market performance front, POET Technologies has experienced a significant return over the last week, with an 18.02% increase, and a strong return over the last three months, at 48.85%. Yet, the stock has taken a substantial hit over the last six months, with a -58.41% return, and the price has fallen significantly over the last year by -66.41%. The company's stock generally trades with high price volatility, which might be a risk factor for some investors.
For those considering an investment in POET Technologies, it's crucial to weigh these financial metrics and market trends. For more detailed analysis and additional InvestingPro Tips, investors can access a wealth of information on InvestingPro, which includes 13 more tips for a comprehensive understanding of POET's financial and market position. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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