Lightwave Logic Inc (LWLG)

[prototype_101]

of interest from GIG conference call Q&A, making the case for the real need for true next gen devices our team now poised to deliver

Krishna Shankar - Roth Capital

Great. Thank you. And then you, you know, laid out a case for a very long profitable cycle for the 40-gig datacenter deployment and 100-gig first ramping up with NRZ and then moving to Band 4 [ph] by late 2017, 2018. Are there any constraints near term in terms of widespread adoption of 100-gig? Is it, you know, the availability of 25-gig lasers or is it the Broadcom switch chipset which, you know, which Avago recently merged with Broadcom, so can you talk about some constraints which may slow down 100-gig deployment and keep 40-gig to mainstream for some time?

Avi Katz

Yeah. I think, Krishna, I think your point is [inaudible] to be honest, we are a very big beneficiary of -- beneficiaries of the slowdown in the 100G. I think the last year sort of proves people that, you know, datacom is a complex game. The parallel optics is very complex. It's not straightforward, even if you want to increase your capacity, you cannot just rush from one generation to the next generation, because it's a complex configuration, mainly limited by -- or mainly gated by the ability to release reliable and high-yield commercial optical devices more so the [inaudible]. And as well as, you know, the [inaudible] obviously, the system level.

So we are definitely taking -- we've definitely seen a great revenue on the 40G all way from 2011 till 2015. As I mentioned in my prepared comments, we almost seen a doubling of the volume shipment year over year in the last four years. I don't know - I cannot project today the volume shipment of 40G devices this year, but I can see a very strong demand for the first six months of this year, as we see it today.

And 100G is more complex, it's comprised of more devices in the engines, it -- it delivers more complex issues such as latency and cross-talk, as we bring four channels of 25 or 28-gigabit per second into the small form factor of the transceiver. I think people are addressing it. I think you're absolutely right saying that the introduction was much slower than project.

To be honest, like everything we're doing in GigOptix, we have a roadmap that allow us to drive revenue as we develop the next generation, as we jokingly say here, we always like to be eat while we are hunting. And our 100G system, as I said, the chipset is ready to roll and we are going to release in public in the next few weeks. Whenever it's come, we'll be ready for it.

I really don't believe, and as I said in the prepared comments, I don't believe that there's any reason to believe that the NRZ modulation will change -- will be changed or will decide, in lieu of a new futuristic modulation schemes counting. So for this year, to be honest, for 2017, I think between the 40 and 100G NRZ technologies, then datacenters will be covered.

http://seekingalpha.com/article/3876896-gigoptixs-gig-ceo-avi-katz-q4-2015-results-earnings-call-transcript?part=single