TORONTO, May 15, 2024 (GLOBE NEWSWIRE) -- POET Technologies Inc. ("POET" or the "Company") (TSXV: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 of and for the three months ended March 31, 2024. The Company's financial results as well as the Management's Discussion and Analysis have been filed on SEDAR+ in Canada and EDGAR in the U.S. All financial figures are in United States dollars ("USD") unless otherwise indicated. First Quarter and Recent Business Highlights: Participation at the Optical Fiber Conference (OFC) held in San Diego in mid-March represented a major commercial turning point for the Company, with the announcement of its first entry into the optical module market for artificial intelligence and cloud data center markets with an 800G pluggable transceiver. The Company also announced four new products at OFC all directed at the AI market, including an 800G transmit optical engine chiplet (200G/lane) that is a fundamental building block for 1.6T and 3.2T pluggable transceivers and an 8-channel packaged light source for C-Band and O-Band wavelengths for chip-to-chip data communications for AI systems and co-packaged optics for the data center market. To support its entry into the high-speed optical transceiver market, the Company announced a collaboration with MultiLane Inc., a well-known, leading provider of high-speed IO and data center interconnect test solutions, to develop next-generation, performance-optimized pluggable 800G, 1.6T and higher speed transceivers. Marking the Company's success in launching its newly designed transmit and receive optical engines, the Company recently announced a major design win and collaboration with Foxconn Interconnect Technology (FIT) to develop 800G and 1.6T pluggable optical transceiver modules for sale by FIT using POET optical engines with an aim to address the growth in demand for cutting-edge AI applications and high-speed data center networks. To provide the development funding needed to address the increased demand for its products, the Company completed a series of previously-announced non-brokered private placements since January 1, 2024 which added a total of approximately C$26.4 million to its balance sheet. In addition, over the same period, the Company sold 4,947,679 common shares through its ‘at-the-market' (ATM) offering in the United States through Craig-Hallum LLC using the facilities of the Nasdaq Capital Market at an average price of C$2.17, for gross proceeds of approximately C$10.8 million. As of May 15, 2024, the Company had cash and cash equivalents of US$23.6M and working capital of US$22.8M. There were 60,485,477 issued and outstanding common shares. Management Comments"Our team embarked on a dynamic first quarter preparing for the Optical Fiber Conference (OFC) held in San Diego in mid-March," stated Chairman & CEO, Dr. Suresh Venkatesan. "We could not have guessed at the time that those efforts would lead to a collaboration with Foxconn, one of the world's leading electronics manufacturing companies to include our optical engines in their 800G and 1.6T optical module products. We are proud to have been selected for their advanced module designs and we look forward to supplying FIT and its global customer base, which includes the largest consumers of optical modules in the AI market. At OFC, we showcased four new products, each of which garnered serious attention from the industry, with the strongest interest in our leading-edge optical engine technology that powers optical modules for AI processing clusters, and in our light source products that facilitate chip-to-chip light-based data communications and high-speed computing. In addition to Foxconn, we are expanding our previously announced relationship with Luxshare, to include additional optical module products, and collaborating with MultiLane, a key supplier of high-speed test equipment in the industry to offer 800G and 1.6T optical modules. The enthusiastic reception from OFC helped us to secure multiple successful capital raises from institutional investors committed to our company's success. The additional capital fortifies our financial foundation as we navigate the next phase of our growth." Non-IFRS Financial SummaryThe Company reported non-recurring engineering revenue ("NRE") of $8,700 in the first quarter of 2024 compared to $181,000 for the same period in 2023 and $108,000 in the fourth quarter of 2023. In the first quarter, the Company provided under NRE contract services to multiple customers, one of which continued to contract services from last year. The revenue relates to unique projects that are being addressed utilizing the capabilities of the POET Optical Interposer. The Company reported a net loss of $5.7 million, or ($0.12) per share, in the first quarter of 2024 compared with a net loss $5.3 million, or ($0.14) per share, for the same period in 2023 and a net loss of $5.5 million, or ($0.13) per share, in the fourth quarter of 2023. The net loss in the first quarter of 2024 included research and development costs of $1.9 million compared to $2.3 million for the same period in 2023 and $2.1 million in the fourth quarter of 2023. Fluctuations in R&D for a Company of this size and this stage of growth is expected on a period-over-period basis as the Company transitions from technology development to product development. Non-cash expenses in the first quarter of 2024 included stock-based compensation of $0.9 million and depreciation and amortization of $0.5 million. Non-cash stock-based compensation and depreciation and amortization in the same period of 2023 were $1.2 million and $0.5 million, respectively. Fourth quarter 2024 stock-based compensation and depreciation and amortization were $1.0 million and $0.5 million, respectively. The Company had non-cash finance costs of $20,000 in the first quarter of 2024 compared to non-cash finance costs of $10,000 in the first quarter of 2023 and non-cash costs of $14,000 in the fourth quarter of 2023. The Company recognized other income, including interest of $53,000 in the first quarter of 2024, compared to $78,000 in the same period in 2023 and $54,000 in the fourth quarter of 2023. The Company reported non-cash fair value adjustment to derivative warrant liability of $0.6 million in the first quarter of 2024, compared to nil in the same period in 2023 and $25,000 in the fourth quarter of 2023. This non-cash item relates to warrants issued in a foreign currency and is periodically remeasured. Cash flow from operating activities in the first quarter of 2024 was ($4.6) million, compared to ($3.6) million in the first quarter of 2023 and ($2.9) million in the fourth quarter of 2023. From January 1, 2024 to date, the Company received gross proceeds of $28.5 million through the issuance of units from multiple private placements, issuance of common shares using its ATM and the issuance of common shares from the exercise of warrants. Non-IFRS Financial Performance MeasuresCertain 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.