Lightwave Logic NASDAQ: LWLG now expects volume production of its electro-optic polymer technology to begin in 2028, pushing back its previous goal of the second half of 2027 as foundry schedules and qualification work take longer than anticipated.
On the company’s third-quarter earnings call, President and CEO Yves LeMaitre said longer silicon photonics wafer production schedules and process qualification cycles, along with remaining customer development and product testing, contributed to the revised timeline.
“The main challenge we have been facing in 2026 is a slower pace of Silicon Photonics Foundries, both in terms of production cycles and PDK process qualification,” LeMaitre said, referring to the process design kits used to support chip manufacturing.
For the quarter ended Sept. 30, Lightwave reported a wider net loss as it increased spending on technology development and commercialization. CFO Fred Graffam said the company believes it has sufficient liquidity to fund its operating plan into 2028.
Foxconn Demonstration and Customer Qualification
LeMaitre highlighted an October demonstration at Hon Hai Tech Day in Taipei of an optical transceiver developed by Hon Hai Technology Group, also known as Foxconn. The transceiver incorporated a silicon-organic hybrid optical engine enabled by Lightwave’s polymer technology.
The companies began working together in the first half of 2025 and demonstrated a first iteration of an optical engine capable of supporting 200 gigabits per second per lane, LeMaitre said. He described the demonstration as system-level evidence of how Lightwave’s technology could be incorporated into a customer product.
He cautioned, however, that further chip design, integration, reliability testing, manufacturing preparation and customer-specific qualification are needed before the program can reach volume production.
In addition to Foxconn and Marvell, Lightwave has three other Fortune Global 500 customers in Stage 3 of its design-win process, LeMaitre said. The company defines Stage 4 as the point at which technical and qualification requirements have been met, commercial terms agreed upon and a customer’s product is ready for volume manufacturing and shipment.
Foundry Work and Production Plans
Lightwave received wafers from two foundry partners during the third quarter. Chips from one partner were used in the Foxconn transceiver demonstration, and the company expects additional wafers from that foundry by the end of 2026, LeMaitre said.
A second partner encountered process issues at one facility, resulting in a limited number of usable chips. That foundry is expected to deliver two new sets of high-performance chips from different manufacturing locations in the first half of 2027. Lightwave expects wafers from a third partner in December 2026, while a run with a fourth partner is tentatively scheduled for the first half of 2027.
LeMaitre said demand for silicon photonics production capacity is putting pressure on foundries and affecting the resources and schedules available to qualify new materials and processes. Lightwave’s active foundry ecosystem includes GlobalFoundries, Tower Semiconductor, SilTerra and an unnamed fourth partner.
The company is also negotiating with a specialist in wafer-level optical manufacturing to help scale back-end processing, which includes depositing and preparing its polymer on silicon photonics chips. That work currently takes place in Denver, and Lightwave plans to outsource it as it pursues higher volumes and larger, 300-millimeter wafers, LeMaitre said.
Third-Quarter Results and Liquidity
Net sales rose to approximately $38,000 from $29,000 a year earlier. Graffam said revenue remains limited and is expected to be driven principally by technical and commercial milestones in existing development contracts. The company had approximately $100,000 in deferred revenue at quarter-end.
Lightwave’s net loss widened to approximately $7.2 million, or 5 cents per share, from $5.1 million, or 4 cents per share, a year earlier. Research and development expense increased to $4.3 million from $2.9 million, while general and administrative expense rose to $3.7 million from $2.3 million.
Cash, equivalents and marketable securities totaled approximately $87.8 million at Sept. 30, down from $95.9 million at June 30. Cash used in operating activities was approximately $15 million for the first nine months of 2026, including $5.2 million in the third quarter.
Graffam said the production delay does not fundamentally change the company’s capital allocation approach. He also said negotiations over a second material supply and licensing agreement remain active, but declined to provide further details.
LeMaitre said development of both 200G-per-lane and 400G-per-lane solutions remains a priority and that the revised production timeline was not tied to a slowdown in next-generation research investment. The company views 200G as a stepping stone toward 400G, he said, while applications beyond 400G may require different technology.
About Lightwave Logic (NASDAQ:LWLG)
Lightwave Logic, Inc. develops electro-optic polymer materials and photonic devices. Its technology is designed to convert electrical signals into optical signals and back, supporting the transmission of data through optical networks. The company's work centers on polymer-based optical modulators, including materials marketed under the Perkinamine name. Lightwave Logic is developing these devices for potential use in telecommunications, data centers and other applications that require high-speed optical communications, including systems that combine polymer technology with silicon photonics.
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