POET: POET’s Q3 Highlight is Lumentum Partnership

By Lisa Thompson



POET (NASDAQ:POET) is showing it can work with the highest quality laser manufacturers which will help it sell to customers as lasers are considered the most fault-prone part of the transceiver. It already works with Broadcom and it now can reveal it is also working with Lumentum. POET announced that it will use Directly Modulated Lasers (DMLs) with integrated drivers in its transmit optical engines and high-speed photodiodes and integrated Transimpedance Amplifiers (TIAs) in receive optical engines for 800G and 1.6T pluggable transceivers for hyperscale data centers. Working with Lumentum, POET’s optical engines will be the industry’s first implementation of DMLs at these rates. Its small size and chip-on-board design will allow 800G and 1.6T designs to easily fit in an industry-standard 1.6T OSFP-XD form factor. The 400G FR4 optical engines will use the industry’s first flip-chip integration on an optical interposer at these data rates. Its highly integrated solution results in lower cost, and power usage, and has size benefits. POET expects to start sampling 800G/1.6T Optical engines in the first half of 2023.

We expect product revenues to start coming in first from the joint venture partner (as it needs product from POET to make its products) and then from its customers.

Three Company Focuses

1. POET now considers its 100G, 200G, and 400G solutions legacy products that are mostly being handled by its joint venture and it is now only getting involved if certain custom work is needed. It has set its sights on higher-end technology and faster speeds of 800G, 1.6T, and 3.2T. Its solution is not only space-saving, allowing it to create transceiver pluggables at 800G and 1.6T, but its efficient design, eliminating wire bonds reduces noise. Noise is just as important as size in this market and lower noise allows the use of lower-powered lasers again reducing power consumption and laser costs. Because the POET design has mux and demux capabilities it reduces the steps in the light transfer and thus the wires connecting making it far more efficient while reducing the need for active alignment. The final step in its elegant design is working with fiber optics suppliers to on a way to connect to the fiber without active alignment.

2. POET also sees a huge market developing in AI. Its customer Celestial AI projects selling 1 million AI accelerators of which there are four POET chips in a unit. At $100 per chip, Celestial represents $400 million in potential revenues by itself. So far, everything Celestial is planning to sell contains POET. Celestial AI is addressing a market expected to be $70 billion in 2025.

3. Many companies are calling the company to use its interposer to demonstrate their technology and devices specifically with lithium niobate modulators. POET is considering licensing its technology to these companies.

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