POET Technologies signs manufacturing agreement with NationGate

TORONTO - POET Technologies Inc. (TSX Venture:PTK; NASDAQ:POET), a $334 million market cap technology company with a strong balance sheet showing more cash than debt, has signed a Master Agreement with NationGate Solutions to manufacture optical engine assemblies in Penang, Malaysia, according to a press release statement issued Tuesday. InvestingPro data shows the company maintains a healthy current ratio of 1.59, positioning it well for manufacturing expansion.

The agreement includes a Module Purchase Agreement and a Deed of Consignment with NationGate, which will assemble and test consigned optical engines with a custom-designed fiber-attach unit made for one of POET’s customers. While the company’s revenue remains modest at $0.2 million in the last twelve months, analysts tracked by InvestingPro project significant sales growth of about 85% for fiscal year 2025.

NationGate, described as the largest electronics manufacturing services provider in Malaysia, will join Globetronics in POET’s Malaysian manufacturing network. POET announced its manufacturing agreement with Globetronics in December 2024.

"Through the relationships, talent and world-class facilities offered by our partners, POET is able to demonstrate the ability to scale manufacturing to the volumes demanded by our customers," said Dr. Suresh Venkatesan, Chairman & CEO of POET Technologies Inc.

The company confirmed it shipped its backlog of sample 800G optical engines to existing customers in early June through its Globetronics operation. POET expects to ship its backlog of 1.6T samples during the third quarter of 2025.

Both manufacturing facilities have begun qualification processes to ensure continuity in delivering POET’s photonics solutions. The company stated that establishing a Malaysian manufacturing footprint responds to increasing customer demand and the need to diversify its supply chain.

POET Technologies designs and develops high-speed optical modules, optical engines and light source products for artificial intelligence systems and hyperscale data centers. The company’s solutions are based on its Optical Interposer technology, which allows integration of electronic and photonic devices into a single chip. Despite challenging market conditions that led to a 31% decline in share price over the past six months, InvestingPro analysis reveals 8 additional key insights about POET’s growth potential and market position.

In other recent news, POET Technologies Inc. announced a plan to raise $25 million through a non-brokered public offering, involving 5 million units priced at $5.00 each. This offering is expected to close around May 15, 2025, and is projected to be fully subscribed by a single Canadian institutional investor. Additionally, POET Technologies recently reported fourth-quarter 2024 results that fell short of analyst expectations, with revenue of $30,000 missing the consensus estimate of $33,330. Adjusted earnings per share were reported at -$0.48, significantly below the anticipated -$0.07. The company’s Q4 revenue declined 73% from the same period last year, attributed to a lack of billable non-recurring engineering services. Despite the revenue miss, POET Technologies completed the acquisition of a 24.8% interest in Super Photonics Integrated Circuit Xiamen Co., Ltd. and expects significant revenue growth in the second half of 2025. Research and development costs increased to $3.4 million from $2.1 million year-over-year. The company raised $25 million through a private placement in November, contributing to a total equity capital raised of $82.2 million in 2024.

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