I received an interesting question via PM, which I believe should be discussed in public:
Question: In the past I assumed they would align with a Finisar who would produce the VCSEL (or have them produced) and we would get a royalty. Now with Anadigics is POET going to become the supplier to a Finisar and others and take a profit on the device as well as a royalty?
I am assuming "Finisar" here is a generic term for optical datacommiunication manufacturers, i.e. a company that fabricates, say, active optical cables. Such a cable is a fiber cable with a VCSEL transceiver attached to one end and another VCSEL transceiver attached to the other end.
Now if you want to manufacture such a cable, you have to get hold of the VCSEL transceivers (plus the fiber cable and possibly additional stuff). Let's say you are manufacturing the transceivers yourself.
Now let's assume you have heard about the POET platform and you might think: "Hey, this is looking very interesting! Let's license it, give it a try and build better and cheaper VCSEL transceivers!" According to the old business model you could have done just that.
But now listen carefully to Suresh Venkatesan describing the new business model: "You can expect us to focus first on productizing proprietary technology that has the potential to become an industry standard, and secondarily on licensing non-core solutions that can provide a steady stream of ancillary revenue."
Oops! What did he say? "Licensing non-core solutions!" That is, a general licensing of the POET technolgy is no longer possible. You can license the POET IP only for what POET considers non-core solutions. So, if POET Technologies considers VCSEL transceivers a core business, you won't be able to license the POET IP for building your own VCSEL transceivers. You are left with two choices:
- continue with your old and expensice transceivers
- buying cheaper and better transceivers from POET Technologies
As a active optical cable manufacturer, you might regret that. As a POET Technologies shareholder, I guess you won't.
