LONDON, June 29, 2017 /PRNewswire/ --
Ethernity Networks (AIM: ENET.L), a data network processing
technology company, is pleased to announce the admission today of
its ordinary shares to trading on the AIM Market of the London
Stock Exchange ("Admission"). Dealings in the ordinary shares will
commence at 8.00am under the ticker
ENET.L and ISIN number of IL0011410359. Arden Partners was sole
bookrunner for the Placing and is acting as Nominated Adviser and
Broker to the Company.
Ethernity is a technology solutions provider that develops data
network processing technology used in high-end Carrier Ethernet
applications across the telecom, mobile, security and data centre
markets. The Company's core technology, which is protected by five
US patents and populated on programmable logic, improves efficiency
and accelerates data processing in the provision of data and
network services, thereby reducing power consumption and reducing
the costs of maintaining network infrastructure by giving hardware
systems the ability to add future-proof data processing
functionality.
Ethernity's technology offers a clear differentiation from other
offerings as evidenced by strong customer traction. The Company has
traded profitably and has sustained positive operating cash flow
for a number of years, and over the last two years Ethernity has
developed new product offerings based on validated technology for
network performance acceleration that should generate growth for
the Company in the coming years.
The Company's software and firmware is already installed in over
400,000 systems globally in broadband access, mobile backhaul and
Ethernet access applications. The reducing cost of the
Field-Programmable Gate Array ("FPGA") will enable the Company to
target larger markets previously only served by
Application-Specific Integrated Circuits / Application-Specific
Standard Products ("ASIC" / "ASSPs") and fuel increased demand
across the Company's core markets.
PLACING STATISTICS
Placing Price per ordinary share 140 pence
Gross proceeds of the Placing GBP15 million
Number of Ordinary Shares in issue immediately following
Admission 32,518,186
Market capitalisation of the Company at the Placing Price GBP45 million
Highlights:
- Existing virtualisation solutions are inadequate to support the
exponential growth in IP data flows to data centres;
- Traditional vendors relying on rigid hardware such as ASIC
solutions need too long to redesign their solutions as technology
and network demands advance;
- Network service providers are requiring more flexible solutions
to their technology and network needs for offloading support of new
data appliances introduced by the market. A paradigm shift in
technology development is required for the delivery of
advanced data appliances;
- Ethernity has designed, developed and patented a series of
system solutions to address these specific needs and is the sole
provider of data network offload technologies that can be delivered
within a FPGA framework with the same advanced functionality that
is currently provided by off the shelf ASIC. Its technology
solutions are:
- Unique and protected by five U.S. patents
- Consumes 80% less die size than legacy networking
technology
- Significant addressable markets: The Software Defined Network
("SDN") market is estimated to reach US$70.41 billion by 2024, according to Grand View
Research, Inc. The global Virtualisation of Network Functions
("NFV") market (including hardware and software) will be worth
US$15 billion by 2020, with software
comprising 80 per cent. of that $15
billion, according to IHS Markit;
- Strong current product portfolio with increasing design win in
wireless, mobile, broadband access and datacenter together with a
strong roadmap of patentable new technologies targeting both data
centers and global carrier ethernet market;
- Established company with a track record of profitable growth
and cash generation with an experienced management team; and
- The Company has raised £15 million in a significantly
oversubscribed placing to strengthen its balance sheet to support
sales to tier one network providers.
Background
Operators and telecom equipment manufacturers are finding it
increasingly difficult to cope with the evolving network
requirements and the ever growing volume of data generated,
processed, consumed and stored by end users of all types. Operators
and telecom equipment manufacturers need to get the required
support for these networking pressures from traditional vendors who
rely on ASIC solutions. New ASIC solutions are often prohibitively
expensive, have a relatively short lifespan and require extended
hardware design time to fabricate the specified networking
features. This issue is exacerbated by the need to support the
emerging SDN specifications which require flexibility and most
importantly programmability.
To overcome limitations of existing infrastructure, operators
are pushing towards NFV, a solution that will enable providers to
control, manage and reduce boundaries created in the existing
generic hardware platforms with software solutions replacing
proprietary hardware networking solutions. However, to make it
economical and to give operators the ability to support the huge
growth in users and data consumption, there is a need for
programmable hardware to accelerate the performance of a pure
software data path. This acceleration solution, in turn, reduces
central processing unit ("CPU") load whilst still maintaining the
exact same programmability and flexibility and supporting the
vision of Network Virtualisation.
Ethernity has designed, developed and patented a series of
system solutions to address these specific needs within a
programmable FPGA framework. The Ethernity solution works across
network processing points from local loop networks, to data
centres, mobile telecommunication requirements to IP traffic and
network functioning. Furthermore, as Ethernity's solutions are
designed using an FPGA platform they are to a great extent
"future-proofed", that is they can be updated, upgraded or
reprogrammed in-line with future network or infrastructure demands
and security requirements.
The Market
In response to the forecast increases in data creation, transfer
and consumption, operators and manufacturers are developing the
Carrier Ethernet and NFV/SDN markets. Both are markets in which the
Company has developed solutions to assist operators to improve
network efficiency and data transfer.
The SDN market is estimated to reach US$70.41 billion by 2024, according to Grand View
Research, Inc. Software defined networking has witnessed a surge in
its popularity in the recent years due to the benefits it offers
over the existing legacy infrastructure. The SDN solutions provide
centralised control and operational capabilities, which help
network administrators and engineers respond quickly and
efficiently.
The global NFV market (including hardware and software) will be
worth US$15 billion by 2020, with
software comprising 80 per cent. of that $15
billion, according to IHS Markit.
Reasons for Admission
The Directors believe that Admission will increase the profile
and credibility of the Company as it seeks to develop its core
markets. Global operators want to deal with long term partners who
have the necessary resources to support their products throughout
their lifecycle, and who can demonstrate sufficient financial
capacity to meet the global network operators volume and delivery
requirements.
Consequently, the net proceeds of the Placing, will be used
to:
- Strengthen the Company's balance sheet and capital base to meet
Original Equipment Manufacturer financial strength requirements;
- Allow the Company to invest in increased and continued R&D
activities to build upon, and continue development of, the
Company's existing product range; and,
- Allow the Company to invest in additional marketing activities,
technical standardization groups to increase product awareness and
accelerate product uptake.
Total voting rights
The total number of Ordinary
Shares in the Company in issue
immediately following Admission will be 32,518,186 each
with equal voting rights. The total voting rights figure can be
used by shareholders as the denominator for the calculations by
which they will determine whether they are required to notify their
interest in, or a change of their interest in, the Company
under the Disclosure, Guidance and Transparency Rules of the
Financial Conduct Authority.
David Levi, CEO of
Ethernity Networks, commented:
"We are delighted to be admitting to AIM today
and that we had such a positive response to the
fundraising from new investors. The fundraising and AIM
listing is a major moment for Ethernity that will put the business
on a greater trajectory and address an exponentially
growing market. We have game changing technology that major
global network operators are demanding and the
listing will enhance Ethernity's profile
and strengthen our balance sheet, which is
essential in order for us to fulfil
tier one supply chain requirements.
"The significant oversubscription demonstrates
investors' confidence in our strategy, technology and
management team. With a strong board and a track record
of profitability and revenue growth
we feel we are extremely well placed to take advantage of the
opportunities that now present themselves to us as a public company
and we look forward to updating our new
shareholders on our progress in due
course."
The Company's Admission Document can be viewed
at: http://www.ethernitynet.com. Copies of
the Admission Document will be available at the registered office
of the Company, subject to applicable securities laws or
regulations.
Enquiries:
Ethernity Networks Ltd
David Levi (Chief Executive
Officer)
Mark Reichenberg (Chief Financial
Officer)
http://www.ethernitynet.com
+972-8-9150392
Arden Partners (NOMAD and Broker)
+44(0)020-7614-5900
Steve Douglas
Benjamin Cryer
Yellow Jersey PR (PR & IR)
Adam Wurf
+44(0)7812-450-398
Charles Goodwin
+44(0)7747-788-221
Alistair de Kare-Silver
+44(0)7825-916-715
Katie Bairsto
SOURCE Ethernity Networks