As a result of feedback we have received from our most recent conference call, we wanted to clarify Mr. Tokman’s remarks in response to the question of whether or not the current synthetic green lasers can be made cost effectively enough to enable embedded applications.
The fundamental message Mr. Tokman was communicating during the conference call and the one we want to stress is this: We firmly believe that the second generation synthetic green lasers, if done properly, could become a part of an embedded solution and effectively compete with direct green lasers (at their onset) for the first 4-5 years, but would likely not be competitive against direct green lasers 10 years from now.
Benefits of Direct Green Laser Diodes
There are at least 5 companies working on development of green laser diodes. Commercial grade direct green lasers are expected to begin entering the market in the second half of next year. Green laser diodes are expected to be smaller, lower power, and cheaper to manufacture than synthetic green lasers, and we expect a larger number of suppliers which will drive competive pricing and result in higher volume availability.
Why Synthetic Green Lasers Could Be Viable For Embedded Applications
We have already begun to see availability of the first generation synthetic lasers increase. The next generation synthetic green lasers are expected to be more efficient and less expensive than their first generation cousins. We also anticipate that the direct green lasers targeted for introduction in the second half of next year may not reach desired performance and cost targets immediately. For these reasons, we believe that synthetic lasers could continue to remain a competitive alternative to direct green lasers for at least the first 4-5 years after diodes are introduced.