POET Technologies Reports Third Quarter 2024 Financial Results
POET Technologies reported Q3 2024 financial results with notable developments in AI networking markets. The company raised $25 million through private placements and expanded partnerships with Luxshare Tech and Mentech. A new collaboration with Mitsubishi Electric was established for 3.2T pluggable transceivers development. The company reported a net loss of $12.7 million ($0.20 per share), compared to $5.1 million ($0.13 per share) in Q3 2023. Cash balance stood at $41.8 million with working capital of $23.6 million. R&D costs were $1.8 million, down from $2.0 million in the same period last year.
POET Technologies ha pubblicato i risultati finanziari del terzo trimestre 2024, evidenziando sviluppi significativi nei mercati delle reti AI. L'azienda ha raccolto 25 milioni di dollari attraverso collocamenti privati e ha ampliato le collaborazioni con Luxshare Tech e Mentech. È stata stabilita una nuova collaborazione con Mitsubishi Electric per lo sviluppo di transceiver pluggable da 3,2T. L'azienda ha registrato una perdita netta di 12,7 milioni di dollari (0,20 dollari per azione), rispetto ai 5,1 milioni di dollari (0,13 dollari per azione) del terzo trimestre 2023. Il saldo di cassa è stato di 41,8 milioni di dollari con un capitale operativo di 23,6 milioni di dollari. I costi di ricerca e sviluppo sono stati di 1,8 milioni di dollari, in diminuzione rispetto ai 2,0 milioni dello stesso periodo dell'anno scorso.
POET Technologies informó los resultados financieros del tercer trimestre de 2024, con desarrollos notables en los mercados de redes de IA. La empresa recaudó 25 millones de dólares a través de colocaciones privadas y amplió asociaciones con Luxshare Tech y Mentech. Se estableció una nueva colaboración con Mitsubishi Electric para el desarrollo de transceptores enchufables de 3,2T. La compañía reportó una pérdida neta de 12,7 millones de dólares (0,20 dólares por acción), en comparación con 5,1 millones de dólares (0,13 dólares por acción) en el tercer trimestre de 2023. El saldo de caja se situó en 41,8 millones de dólares con un capital de trabajo de 23,6 millones de dólares. Los costos de I+D fueron de 1,8 millones de dólares, por debajo de los 2,0 millones en el mismo periodo del año pasado.
POET Technologies는 2024년 3분기 재무 결과를 발표하며 AI 네트워킹 시장에서 주목할 만한 발전을 보여주었습니다. 이 회사는 사모 배정을 통해 2,500만 달러를 모금했으며, Luxshare Tech와 Mentech와의 파트너십을 확대하였습니다. 3.2T 플러그형 트랜시버 개발을 위해 Mitsubishi Electric와의 새로운 협력이 시작되었습니다. 해당 회사는 3분기에 1주당 0.20달러로 총 1,270만 달러의 순손실을 기록했으며, 이는 2023년 3분기 1주당 0.13달러로 총 510만 달러에 비해 증가한 수치입니다. 현금 잔고는 4,180만 달러, 운영 자본은 2,360만 달러로 보고되었습니다. 연구 및 개발 비용은 180만 달러로, 지난 해 같은 기간의 200만 달러에서 감소했습니다.
POET Technologies a publié ses résultats financiers pour le troisième trimestre 2024, avec des développements notables dans les marchés des réseaux IA. L'entreprise a levé 25 millions de dollars grâce à des placements privés et a élargi ses partenariats avec Luxshare Tech et Mentech. Une nouvelle collaboration avec Mitsubishi Electric a été établie pour le développement de transceivers plugables de 3,2T. L'entreprise a rapporté une perte nette de 12,7 millions de dollars (0,20 dollar par action), contre 5,1 millions de dollars (0,13 dollar par action) au troisième trimestre 2023. Le solde de trésorerie s'élevait à 41,8 millions de dollars avec un fonds de roulement de 23,6 millions de dollars. Les coûts de R&D ont été de 1,8 million de dollars, en baisse par rapport à 2,0 millions de dollars au cours de la même période l'an dernier.
POET Technologies hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht, mit bemerkenswerten Entwicklungen im Bereich der KI-Netzwerktechnologie. Das Unternehmen hat 25 Millionen Dollar durch Privatplatzierungen gesammelt und Partnerschaften mit Luxshare Tech und Mentech erweitert. Eine neue Zusammenarbeit mit Mitsubishi Electric wurde für die Entwicklung von 3,2T steckbaren Transceivern etabliert. Das Unternehmen meldete einen Nettoverlust von 12,7 Millionen Dollar (0,20 Dollar pro Aktie) im Vergleich zu 5,1 Millionen Dollar (0,13 Dollar pro Aktie) im dritten Quartal 2023. Der Bargeldbestand betrug 41,8 Millionen Dollar, mit einem Betriebskapital von 23,6 Millionen Dollar. Die Forschungs- und Entwicklungskosten beliefen sich auf 1,8 Millionen Dollar, ein Rückgang im Vergleich zu 2,0 Millionen Dollar im gleichen Zeitraum des Vorjahres.
- Raised $25 million in equity capital through private placements
- Cash balance of $41.8 million and working capital of $23.6 million
- Expanded partnership with Luxshare Tech for AI network equipment
- New collaboration with Mitsubishi Electric for 3.2T transceiver development
- Secured purchase orders from Mentech for 800G transceiver development
- Net loss increased to $12.7 million from $5.1 million year-over-year
- Non-cash fair value adjustment to derivative warrant liability of $6.2 million
- Operating cash flow deteriorated to -$5.5 million from -$4.1 million year-over-year
Insights
The Q3 results reveal mixed signals. While the
Strategic partnerships with Luxshare Tech, Mentech and Mitsubishi Electric position POET well in the AI networking market, but revenue generation remains minimal at
The collaboration with Mitsubishi Electric for 3.2T pluggable transceivers represents a significant technological advancement in AI networking infrastructure. The expanding partnership with Luxshare Tech and new engagement with Mentech demonstrate growing market validation of POET's optical interposer technology. These developments position POET at the forefront of high-speed optical connectivity solutions for AI applications, where data center interconnect speeds are critical.
The industry recognition through multiple AI awards validates the technical merit of POET's approach. However, the transition from development to commercial deployment remains the key challenge, as evidenced by minimal current revenue. The market opportunity in AI networking infrastructure is substantial, but execution in scaling production and customer adoption will be crucial.
Quarter Marks Strong Balance Sheet and Expanded Customer Engagements
TORONTO, Nov. 14, 2024 (GLOBE NEWSWIRE) -- POET Technologies Inc. (“POET” or the “Company”) (TSX Venture: PTK; NASDAQ: POET), the designer and developer of the POET Optical Interposer™, Photonic Integrated Circuits (PICs) and light sources for the data center, tele-communication and artificial intelligence markets, today reported its unaudited condensed consolidated financial results as at and for the three months ended November 30, 2024. The Company’s financial results as well as the Management’s Discussion and Analysis have been filed on SEDAR. All financial figures are in United States dollars (“USD”) unless otherwise indicated.
Management Comments
“We are very proud of the progress POET has made this quarter, particularly with strategic partnerships and customers that strengthen our position in the AI networking markets that are experiencing explosive growth,” said Dr. Suresh Venkatesan, Chairman & CEO. “We expanded our business with Luxshare Tech, acquired a new customer in Mentech and engaged with Mitsubishi Electric in a groundbreaking project that promises to upend the market for high-end transceivers serving AI clusters. The capital raised from institutional investors has bolstered our financial position, enabling us to drive forward with innovation and stay focused on our long-term growth strategy. There is also no doubt that the high-profile customer engagements and awards in AI underscore the industry’s recognition of our technical expertise and the superior performance of our products in high-speed connectivity solutions, which we are confident will turn into significant revenue in the coming year.”
Third Quarter and Recent Business Highlights:
- During the third quarter, the Company raised
$25 million in equity capital in two non-brokered private placements with two institutional investors by issuing 7,333,334 Units at a weighted average price of$3.41 per Unit. The Units included warrants to purchase 5,333,334 common shares over a period of five years from the date of issuance at a weighted average price of$4.38 per share. - The Company expanded its partnership with Luxshare Technology Co. Ltd. (“Luxshare Tech”) to provide more optical module products targeted at AI network equipment and AI service providers. Luxshare Tech is a global leader in providing technology for data-communication facilities and enterprise-level products for some of the largest companies in the world.
- The Company announced that Mentech Technology (“Mentech”) has selected POET’s transmit and receive optical engines for use in the development of an 800G pluggable transceiver and has placed purchase orders for those engines. The sample orders by Mentech are for initial builds and engineering development.
- The Company announced it has entered into a collaboration with Mitsubishi Electric Corporation (“Mitsubishi Electric”) to co-develop integrated optical engine chipsets for 3.2T pluggable transceivers, a highly sought-after product for optical connectivity in the rapidly growing AI networking market. POET and Mitsubishi Electric will jointly support product demonstrations with major customers.
- The Company was recognized with three major awards during the past two quarters, including the Gold Prize as the “AI Innovator of the Year” in the Technology category of the prestigious 2024 Merit Awards, and the “Best in Artificial Intelligence” at the prestigious 2024 Global Tech Awards, and the 2024 AI Breakthrough Awards honor for “Best Optical AI Solution”.
- The Company’s cash balance as of September 30, 2024 was
$41.8 million . Working capital was$23.6 million . Working capital included non-cash current liabilities related to derivative warrant liabilities of$18.9 million .
Non-IFRS Financial Summary
The Company reported a net loss of
Non-cash expenses in the third quarter of 2024 included stock-based compensation of
The Company recognized other income, including interest of
The Company reported non-cash fair value adjustment to derivative warrant liability of
Cash flow from operating activities in the third quarter of 2024 was (
Raised gross proceeds of
Non-IFRS Financial Performance Measures
Certain financial information presented in this press release is not prescribed by IFRS. These non-IFRS financial performance measures are included because management has used the information to analyze the business performance and financial position of POET. These non-IFRS financial measures are intended to provide additional information only and do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. These non-IFRS financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
| POET TECHNOLOGIES INC. PROFORMA – NON-IFRS AND IFRS PRESENTATION OF OPERATIONS (All figures are in U.S. Dollars) | |||||||||||
| For the Quarter ended: | 30-Sep-24 | 30-Jun-24 | 31-Mar-24 | 31-Dec-23 | 30-Sep-23 | ||||||
| Revenue | 3,685 | - | 8,710 | 107,551 | - | ||||||
| Research and development | (1,765,481 | ) | (2,117,828 | ) | (1,922,066 | ) | (2,142,003 | ) | (2,043,264 | ) | |
| Depreciation and amortization | (525,955 | ) | (509,699 | ) | (509,260 | ) | (505,869 | ) | (508,484 | ) | |
| Professional fees | (480,871 | ) | (366,839 | ) | (409,726 | ) | (902,368 | ) | (273,905 | ) | |
| Wages and benefits | (667,963 | ) | (780,146 | ) | (768,496 | ) | (676,539 | ) | (640,241 | ) | |
| Impact of join venture | - | - | - | - | - | ||||||
| Stock-based compensation | (1,525,131 | ) | (1,591,741 | ) | (947,502 | ) | (1,050,088 | ) | (1,251,648 | ) | |
| General expenses and rent | (1,784,840 | ) | (1,390,933 | ) | (570,819 | ) | (317,333 | ) | (429,457 | ) | |
| Derivative liability adjustment | (6,179,836 | ) | (1,376,761 | ) | (629,824 | ) | (24,865 | ) | - | ||
| Interest expense | (30,482 | ) | (20,833 | ) | (19,753 | ) | (13,547 | ) | (34,890 | ) | |
| Other (income), including interest | 216,337 | 174,911 | 52,558 | 54,047 | 45,448 | ||||||
| Net loss | (12,740,537 | ) | (7,979,869 | ) | (5,716,178 | ) | (5,471,014 | ) | (5,136,441 | ) | |
| Net loss per share | (0.20 | ) | (0.14 | ) | (0.13 | ) | (0.13 | ) | (0.13 | ) | |
ATM Quarterly Update
During the fiscal quarter ended September 30, 2024, through its ATM facility, the Company sold 421,579 common shares at an average price of C
Stock Option Grant
On November 13, 2024, the board of directors of the Company approved the grant of 450,000 stock options to purchase common shares to certain officers and employees of the Company. The stock option grant includes the award of 350,000 stock options to certain officers of the Company and 100,000 to other employees.
The stock options granted have an exercise price of C
About POET Technologies Inc.
POET is a design and development company offering high-speed optical modules, optical engines and light source products to the artificial intelligence systems market and to hyperscale data centers. POET’s photonic integration solutions are based on the POET Optical Interposer™, a novel, patented platform that allows the seamless integration of electronic and photonic devices into a single chip using advanced wafer-level semiconductor manufacturing techniques. POET's Optical Interposer-based products are lower cost, consume less power than comparable products, are smaller in size and are readily scalable to high production volumes. In addition to providing high-speed (800G, 1.6T and above) optical engines and optical modules for AI clusters and hyperscale data centers, POET has designed and produced novel light source products for chip-to-chip data communication within and between AI servers, the next frontier for solving bandwidth and latency problems in AI systems. POET’s Optical Interposer platform also solves device integration challenges in 5G networks, machine-to-machine communication, self-contained "Edge" computing applications and sensing applications, such as LIDAR systems for autonomous vehicles. POET is headquartered in Toronto, Canada, with operations in Allentown, PA, Shenzhen, China, and Singapore. More information about POET is available on our website at www.poet-technologies.com.
| Media Relations Contact: Adrian Brijbassi Adrian.brijbassi@poet.tech | Company Contact: Thomas R. Mika, EVP & CFO tm@poet.tech |
Forward-Looking Statements
This news release contains “forward-looking information” (within the meaning of applicable Canadian securities laws) and “forward-looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “potential”, “estimate”, “propose”, “project”, “outlook”, “foresee” or similar words suggesting future outcomes or statements regarding any potential outcome. Such statements include the Company’s expectations with respect to the success of the Company’s product development efforts, the performance of its products, the expected results of its operations, meeting revenue targets, and the expectation of continued success in the financing efforts, the capability, functionality, performance and cost of the Company’s technology as well as the market acceptance, inclusion and timing of the Company’s technology in current and future products and expectations for approval of proposals at the Company’s annual meeting of shareholders.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management’s expectations regarding the success and timing for completion of its development efforts, the introduction of new products, financing activities, future growth, recruitment of personnel, opening of offices, the form and potential of its joint venture, plans for and completion of projects by the Company’s consultants, contractors and partners, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, the failure of its products to meet performance requirements, lack of sales in its products, once released, operational risks in the completion of the Company’s anticipated projects, lack of performance of its joint venture, risks affecting the Company’s ability to execute projects, the ability of the Company to generate sales for its products, the ability to attract key personnel, the ability to raise additional capital and the agreement by shareholders to approve proposals put forth by the Company at shareholders’ meetings. Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company’s securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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FAQ
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