Ethernity Networks Ltd $4.6 million Follow-on Contract Win (9084Z)
September 20 2022 - 2:00AM
UK Regulatory
TIDMENET
RNS Number : 9084Z
Ethernity Networks Ltd
20 September 2022
20 September 2022
ETHERNITY NETWORKS LIMITED
("Ethernity" or the "Company")
$4.6 million Follow-On Contract win
Ethernity Networks (AIM: ENET.L; OTCQB: ENETF), a leading
supplier of networking processing semiconductor technology ported
on FPGA (field programmable gate array) for virtualised networking
appliances, is pleased to announce that it has signed a new
follow-on contract with its existing customer, a Chinese broadband
network OEM (the "Customer") following the initial contract with
the Customer, details of which were announced on 18 October
2021.
Highlights
-- New follow-on $4.6 million contract with existing customer operating in India and China
-- For the provision of devices to enable Fiber-to-the-Room deployment
-- Brings total value of contracts with Customer for the
Company's PON technology to $7.6 million
Under the contract, Ethernity will supply system-on-chip (SoC)
devices with support for Gigabit Passive Optical Networking (GPON)
Optical Line Termination (OLT), adapted to enable Fiber-to-the-Room
(FTTR) deployments. The Ethernity solution offers GPON OLT over an
extremely low-cost FPGA to serve residential and small office
Customer Premises Equipment (CPE) for FTTR deployments.
Fiber-to-the-Room is a disruptive trend that uses passive
optical fiber to reach residential, retail, enterprise, and
automotive deployments. Passive fiber optic deployments provide
greater reliability and performance than Wi-Fi and a greener and
more power efficient solution than traditional copper cabling. By
bringing fiber into the individual rooms of an apartment or small
office, end users can benefit from higher throughput with an
unmatched level of service to enable today's most data-hungry
applications without experiencing lags.
This is the second major contract with this Customer, following
an original $3 million GPON and XGS-PON OLT SoC order in October
2021. Given the success of that initial project, the customer
proposed a follow-up project to address the larger FTTR market,
targeting residential deployments, and expanding the Company's
reach into a new mass volume market. This brings total contracts
values for the Company's PON technology with the Customer to $7.6
million.
The committed orders under the new contract total $4.6 million
and the Company expects that revenue from the new contract will be
recorded in 2023 and 2024 and will make a significant contribution
to 2023 revenues over and above the Company's existing order book.
The Company has recorded initial revenues under the original $3
million contract in the current year, with further anticipated in
the remainder of 2022 and the majority expected to be generated in
2023.
This is the largest singular FPGA volume based contract that the
Company has entered into to date. Due to nature of the device being
a major enabler within a new generation home gateway and the
significant estimated volumes indicated by the Customer on top of
the committed volume per the contract, this may justify moving to
port the design integrated on the FPGA to an Application Specific
Integrated Circuit (ASIC), so as to allow long-term competitive
pricing.
David Levi, CEO, Ethernity Networks said: "This deal confirms
our prior expectations that Ethernity's contract wins would lead to
follow-on business. We are extremely pleased with the advances we
have made on a deployable PON product with this OEM customer, and
we are excited to begin work on this extended offering for the new
FTTR market. This is a totally untapped market for Ethernity that
utilises our existing 5G infrastructure technology to serve a major
connected residential market. I believe this is the tip of the
iceberg in this growing market for the Company and has the further
potential to generate additional significant revenue flows."
About Ethernity Networks
Ethernity Networks (AIM: ENET.L) provides innovative,
comprehensive networking and security solutions on programmable
hardware for accelerating telco/cloud networks. Ethernity's
semiconductor logic offers complete Carrier Ethernet Switch Router
data plane processing and control software with a rich set of
networking features, robust security, and a wide range of virtual
function accelerations to optimize telecommunications networks.
Ethernity's complete solutions quickly adapt to customers' changing
needs, improving time-to-market, and facilitating the deployment of
5G, edge computing, and NFV.
For more information on Ethernity's products and solutions,
please see The Company's website at www.ethernitynet.com.
For further information, please contact:
Ethernity Networks Ltd Tel: +972 8 915 0392
David Levi, Chief Executive Officer
Mark Reichenberg, Chief Financial Officer
Allenby Capital Limited (Nominated Adviser Tel: +44 (0)20 3328
and Joint Broker) 5656
James Reeve / Piers Shimwell (Corporate
Finance)
Amrit Nahal (Sales and Corporate Broking)
Peterhouse Capital Limited (Joint Broker) Tel: +44 (0)20 7562
0930
Lucy Williams / Duncan Vasey / Eran Zucker
Harbor Access Inc (US Investor Relations) Tel: + 1 (475) 477
Jonathan Paterson 9401
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