08:40 AM EDT, 08/29/2024 (MT Newswires) -- POET Technologies ( POET ) said Thursday that it is closing down its operations in Allentown, Pennsylvania, which will lead to annual savings of US$1.8 million to US$2 million.

The company, which offers high-speed optical modules, optical engines and light source products to artificial intelligence systems, said the shutdown is part of the wider reorganization of its engineering team to streamline activities globally.

Under the plan, POET will establish global engineering operations in Singapore to bring the company closer to its optical engines customers, which are mostly located in China, Taiwan and other Asia Pacific countries.

As a result, the functions of engineering design and manufacturing interface at Allentown will be transferred to POET's Shenzhen operation in China, with other functions being transferred to Singapore.

POET said critical product design and architecture, key customer relationships, global marketing & sales, and intellectual property management will remain in Silicon Valley California.

The company's finance, investor relations and other administrative functions will continue to be managed from the Toronto headquarters.

"Now that the company has a strong balance sheet, we can confidently plan for our future, by streamlining the organization with a laser focus on securing design wins, delivering products and taking volume production orders from customers," Chairman and CEO Suresh Venkatesan said. "We fully expect that the partnerships and customers that we have announced over the past few months will mature into module designs that will qualify with end users and convert to optical engine revenue later this year and into 2025, with ultra-high growth in the years to follow."

POET's share price fell 4.1% on Wednesday to $3.94.