Ethernity Networks Ltd Trading Statement (9072A)
January 04 2018 - 2:00AM
UK Regulatory
TIDMENET
RNS Number : 9072A
Ethernity Networks Ltd
04 January 2018
4 January 2018
ETHERNITY NETWORKS LTD
("Ethernity" or the "Company")
Trading Update
Ethernity Networks (AIM:ENET), a technology solutions provider
that develops network data processing technology used in high-end
Carrier Ethernet applications, today provides the market with an
update on trading for the year ended 31 December 2017.
The trend highlighted during the first half of FY17 of a move
from FPGA sales to royalties and large licensing deals continued in
the second half of FY17 as demonstrated by the announcement of a
new contract win with an Australian equipment manufacturer in
December 2017.
It was also anticipated that an existing customer would vary a
large licensing deal to include an additional large sum of upfront
cash and a royalty stream for integrating the Company's data
processing code into a customer wireless ASIC. However, ultimately
the customer has selected a different Ethernity proposal to use an
FPGA SoC. This should result in significant additional revenues
being received by the Company through the delivery of a complete
FPGA SoC into the customer's large volume market that could not
previously be served by the alternative solution. This further
demonstrates the Company's vision that FPGA solutions penetrate a
larger volume market than has previously been served entirely by
ASIC. Ethernity is well placed to benefit from selling complete
FPGA SoC solutions.
Further, the supply of products under two other ENET legacy
contracts have been delayed from 2017 into 2018, whilst this timing
delay is disappointing, the sales from these contracts are expected
to be recovered in due course.
As a result of the above, the Company anticipates that revenues
and profits for the year ended 31 December 2017 will be below
market expectations, however the Company has significantly
increased operating profits when compared to the previous year. The
Company remains focussed on maximising the opportunity presented by
the continued market move to FPGA solutions and continues to invest
in the people, infrastructure and industry partners that will see
Ethernity best placed to deliver these solutions.
For further information, please contact:
Ethernity Networks Tel: +972 8 915 0392
David Levi, Chief Executive
Officer
Mark Reichenberg, Chief
Financial Officer
Arden Partners plc (NOMAD Tel: +44 207 614 5900
and Broker)
Steve Douglas / Benjamin
Cryer
Yellow Jersey Tel: +44 7747 788 221
Charles Goodwin / Katie
Bairsto
Market Abuse Regulation
The information communicated in this Announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014 ("MAR"). For the purposes of MAR and Article 2
of Commission Implementing Regulation (EU) 2016/1055, this
announcement is being made on behalf of the Company by Mark
Reichenberg, Chief Financial Officer.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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