REG - Ethernity Networks - Contract win with Tier 1 customer

Ethernity NetworksAnnouncement

02/11/2023 07:16

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231102:nRSB1188Sa&default-theme=true

RNS Number : 1188S  Ethernity Networks Ltd  02 November 2023

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the Market
Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.

 

02 November 2023

ETHERNITY NETWORKS LTD.

("Ethernity" or the "Company")

 

Contract win with Tier 1 military aerospace customer

 

·    Extended license contract signed valued at $475,000

·    Contract expected to be fulfilled in Q4 2023

·    The Company expects further revenue from customer in 2024 through
support of the utilisation of the license on multiple platforms and systems,
and by applying to different platform configurations and functionality

 

Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data
processing semiconductor technology for networking appliances, is pleased to
announce that it has signed an extended license contract for $475,000 (the
"Contract") with a Tier 1 US based military aerospace customer (the
"Customer"). This Contract is further to an advanced payment received in
October 2023 of $80,000 from the Customer. Payments for the Contract are
expected to be received during November and December 2023. As a result, the
total anticipated revenue from the Customer during Q4 2023 is $555,000.

 

Since 2019, Ethernity has provided the Customer with its unique silicon-tuned
software supporting 24GE and 4 x 10GE ports utilised on AMD's MPSOC FPGA
device, for use on a specific platform. The total license fees received under
this historic license was $715,000. With this extended license, the Customer
will be able to utilise the Ethernity ENET flow processor IP on other
platforms. This Contract brings the total license fees with the Customer to
$1.19 million. The Company is pleased to continue its relationship with this
Customer and, whilst there can be no guarantees, the Board believes that this
extended license Contract could open the door for the Company to penetrate
into other platforms through collaboration with the Customer leading to future
support and design service revenue.

 

The revenue associated with this Contract, together with ongoing business from
other customers as well as work related to the two FPGA SoC contracts
announced on 9 August 2023, are expected to represent the main revenue
contributors for the Company during Q4 2023.

 

David Levi, CEO of Ethernity Networks, commented: "The support and excellent
delivery provided to the Customer five years ago resulted with an outstanding
product for the military aerospace market. The Customer appreciates our
support and the quality of the Ethernity ENET flow processor code, and as a
result decided to sign on an extended license agreement. I am grateful to the
Customer who agreed to support the Company during the challenging period
Ethernity is currently facing, and look forward to continue our long-term
collaboration via possible future business opportunities."

 

For further information, please contact:

 

 Ethernity Networks Ltd                                        Tel: +972 8 915 0392
 David Levi, Chief Executive Officer

 Allenby Capital Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 3328 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

 

About Ethernity ( www.ethernitynet.com (http://www.ethernitynet.com/) )

Ethernity Networks (AIM: ENET.L OTCQB: ENETF) provides innovative,
comprehensive networking and security solutions on programmable hardware that
increase telco/cloud network infrastructure capacity. Ethernity's
semiconductor logic offers data processing functionality for different
networking applications, innovative patented wireless access technology, and
fibre access media controllers, all equipped with control software with a rich
set of networking features. Ethernity's solutions quickly adapt to customers'
changing needs, improving time-to-market, and facilitating the deployment of
5G over wireless and fibre infrastructure.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  CNTUAOURONUARUA