$LWLG (copy by F2) I re-read the 10-Q this morning
Post# of 871
"As we move forward through 2017, we expect to (i) bring in-house more specific skill sets in materials engineering and in device testing and fabrication, as well as personnel to orchestrate our various Company activities; and (ii) attract an industry partner with the synergistic capabilities necessary to help develop future products that are in various stages of design, such as a slot waveguide modulator and our integrated fiber optic polymer-based transceiver over and above device packaging competences."
It's a Saturday, and I feel like this quotes needs the appropriate from of time and story in order to understand what is really being communicated here. I will attempt as follows:
So as a 10 year stockholder, I remember (all too well) the various discussions around forming a partnership with a LSS (Large System Supplier).
Back then, the prospect of this was laughed and joked about under old management and the hope was the technology would lead us to a partnership of some kind, in some way that would be beneficial to us.
I saw it as throwing spaghetti up against the wall to see if it stuck. It was never specific. We simply hoped the likes of Intel or IBM took notice of us enough to partner with us as the ultimate end game.
The effort seemed to be centered around test results, but never devices then. What I mean is, we hope a sufficient test would produce a partner ... but yes there was nebulous talk of a prototype.
We just never saw a roadmap going forward that was well articulated. I imagined then (just me) a stock price that might ultimately go to double digits perhaps before it was bought out.
There was not ever a focus on anything with specificity more than making 'advanced telecom modulators' perhaps together.
The real focus always it seemed was not getting squashed like a bug, running out of money and attracting attention enough to have a conversation with LSS's that went somewhere.
When Tom came aboard many things began to change.
One was the determination that we would not go back to engage LSS's anymore until/unless we had our house in better order.
So the laser focus came to taking care of everything from the ground up, beginning with making the material pure enough and repeatable through a catalogued process where we could begin to stand on our own. The way I look at it now is this.
The discussions with any LSS's told us that we weren't ready and they weren't willing to throw money at us (surprise, surprise) unless/until we showed we were more worthy. This made us have to grow up and begin to stand on our own!
It is simply the best thing that could have ever happened to the company. Period!!!
The last several years, instead of setting things up with a few tests that we hoped if successful would lead us toward a partnership/buyout, we had to game plan, beginning with a materials development program centering us toward what it would take to stand on our own, compete and win against every other competing technology.
We always had the potential, but I think all the old timers will agree, that was not our focus or drive. We were then just flipping coins in a fountain and wishing for a buyout.
We were led at that point by a lot of more senior leadership that was quite frankly probably more interested in that than making product and revolutionizing an entire industry.
My have times changed...
So now the last 4-5 years, as long and ... well as long as they have been, we have done exactly that.
We now have specific product, a very specific road map which is designed to compete and win ... and revolutionize an industry.
That begins in the very days in front of us with a 4 x 25 Gbps Ridge Waveguide Modulator that WE will contract to sell through a 'packaging partner' to make money in a 300 million dollar annual market.
We will be selling our own devices. Let's say we make 40 million net income a year in a year or two off this device at gross profits of say 50% which I believe is extremely possible, we are then talking about earnings on an annual basis of .50-.55 a share on this first product.
My point here being even with this (which is as much as many companies could ever expect to make in an arena like this) we will be a huge hit. We could easily see a valuation of 50 time future PE here ... we will be a hot topic in a booming industry. You do the math, that's 25 bucks a share...
The thing is, that enables us simply to be stable as a company, that's the point ... so no more need of funding from .... whatever you want to say about our present source of funding.
We all know however that this is only the beginning.
We will make and sell the next devices which will allow us to dominate the 400 Gbps market very, verrrrry soon which WE will also make and sell.
Whether it is a 4 x 50 Gbps device using PAM4 coding or 8 modulators (from the 10-Q), it doesn't matter.
We will use the same packaging partner and SELL THEM OURSELVES into a 4 billion dollar market. We will be enormously, tremendously profitable at this point, because we will OWN that market all to ourselves on a basis of price point, performance parameter, future scalability (as Dr. Lebby has said, customers want to know that you have an ability to go beyond this, and we do - we were told in the last 10 Q that we are getting ready to unleash 'several' new advancements in materials systems) and the fact that this technology as it is employed in big data centers, uses 70% less electricity for cooling.
If we had no other advantage at all, this one alone would allow us to dominate a market I promise. But we have all 4!
So now, let me bring us back to the beginning... the quote. We will now be our own, extremely successful company at this point with a virtually unlimited stock price base on the minuscule number of shares outstanding (only 71 million presently with 18 million in warrants... absolutely nothing).
We will be earning many dollars per share in net earnings on this alone, quickly becoming a cash cow ...
But wait, there is a market out there for photonic transceivers, slot wave guide modulators and the opportunity for Polymer Photonic Integrated Circuits.
The transceiver market will be worth 25 billion in revenues on an annual basis. There are many companies by now that see the handwriting on the wall.
We are the only game in town as it relates to Polymer Photonics.
We now have the market leader as our CEO who has attracted and is attracting world class talent on a team based model.
He has said Lightwave Logic will be the next big thing in Silicon Valley. He is building it under our collective noses even this morning. So these companies realize their only hope to compete in this arena is to partner with Lightwave Logic before their competition does.
So now I ask you, what's the company really worth?
A few thoughts for a Saturday, best to the longs...
F2