Today, we need to talk again about Lightwave Logic, Inc. (OTCMKTS:LWLG), the tech company. We noted in our previous articles that it was a name to follow because of its large amount of cash on hand, intangible assets, and know-how accumulated. Additionally, the company seemed to have excited the market by releasing that its technology could achieve high-speed fiber-optic data communications; 400Gbps modulation in fiber optic communications.
Our readers will be remembering well we made a call on May 7, 2017 claiming that there was something to like here. The share price was approximately at the $1.00 level and the volume, which is a very good measure of the market interest, was astonishing. As of today, September 20, 2017, shares can be sold for $1.47.
The share price went up in the last week. What’s happened?
In a new press release, the company noted that it had achieved Polymer-Based Mach-Zehnder Modulators with 50GHz Operation, which finally would open the door to 400Gbps communications. The share price jumped as a result of the news, as the market understood that the new technology could bring an increase at the top of the P&L. Before we provide more details, have a look at the recent share price action:
Let’s review the company background for those who are getting to know LWLG now. Lightwave Logic Inc., which was founded in 1997, is focused on the development of new materials as well as the photonic device design and development. It has offices in Newark, Delaware, and Colorado. As we said, the company has acquired and developed large amount intangible assets; 25 patents and 3 patent-pending designs as of December 31, 2016.
The company released large amount of press releases since May, thus we will assess only those that affected the share price and were very significant.
On July 19, 2017, the company noted that it had advanced its high-speed modulation performance to satisfy 28Gbps data rates for QSFP28 standards, and 100 Gbps data center applications. Michael Lebby, CEO of Lightwave Logic, explained the new development noting that the company is growing in both size and expertise. These were the most significant words:
“Our team has grown in both size and experience to further support the advancement of our polymer P2ICTM Polymer PIC (photonic integrated circuit) platform technology and this will help accelerate our progress. The improved performance of this prototype puts us on the right track to further scale our ridge waveguide modulator towards 50Gbps, which will enable 400Gbps optical networking data-rates (using 4 channels at 50 Gbps with PAM4 modulation – to double the speed, or 8 channels at 50 Gbps using NRZ modulation).” Source
Additionally, this summer, the CEO was invited to present the company’s new innovations at universities and technological forums. We need to include the invitation to promote Polymer PICs at the World Technology Mapping Forum in Europe, the speech at ECOCs Prestigious Market Focus Sessions in Gothenburg, Sweden, and the PIC Conference at the High Technology Campus, Eindhoven, the Netherlands. We appreciate these meetings, as they show that the company is really working on increasing awareness around the world.
Finally, on September 19, 2017, the company released the achievement of polymer-based Mach-Zehnder Modulators with 50 GHz Operation, which is finally opening the door for 400 Gbps. This is exactly what we had said and what the market was looking for. We explained that if news about the 400 Gbps hit the market, the share price would jump. Look at what happened.
More in detail, the company explained that the new innovation will permit the use of arrays of 4 x 50 Gbps polymer modulators using PAM-4 encoding to access 400 Gbps data rate systems. Additionally, it was said that PAM-4 or Pulse-Amplitude Modulation is an “encoding scheme that can double the amount of data that can be transmitted.”
As Dr. Lebby explained, the new development is quite significant, as the company is now in a position to compete aggressively in the 400 Gbps data center and high-performance computing markets. On top of it, he explained that “a 50 Gbps capable modulator would allow Lightwave to push performance towards 100 Gbps to enable data rates of 800 Gbps.” We appreciated the new plan by the executive, as it helps us focus on what we need to be alert in the future.
Currently trading with a market cap of $105 million, LWLG is an exciting story among small caps. With a very solid balance sheet that includes a lot of cash on hand, the company, still in a pre-revenue stage, is seducing the market with new technologies that permit faster communications. The market is really responding by pushing up the share price. We agree with the share price move. We encourage our subscribers to be alert, as the company has already said that new innovations are on the way!
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Image courtesy of Sivaserver via Flickr
Disclosure: We have no position in LWLG and have not been compensated for this article.