REG - Ethernity Networks - Fibre Controller Contracts Progress

Ethernity NetworksAnnouncement

06/03/2023 07:00

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RNS Number : 9240R  Ethernity Networks Ltd  06 March 2023

6 March 2023

ETHERNITY NETWORKS LTD.

("Ethernity" or the "Company")

 

Fibre controller contracts progress

 

Ethernity Networks (AIM: ENET.L; OTCQB: ENETF), a leading supplier of data
processing semiconductor technology for networking appliances, is pleased to
provide an update on the fulfilment of its contracts with its Asian broadband
network OEM customer (the "Customer").

 

$3 million contract (announced 18 October 2021)

 

The Company has successfully completed the integration of its XGS-PON Optical
Line Termination (OLT) fibre access controller onto the Customer's board and
has completed interoperability with three 3(rd) party Optical Networking Units
(ONUs) servicing the end user network. The Company has commenced shipment of
its ENET5200 Quad XGS-PON System-on-chip (SoC) controller device to the
Customer in line with the contract term and remains on track to record the
majority of the revenues under this contract during the course of 2023.

 

$4.6 million contract (announced 20 September 2022)

 

The Customer completed manufacturing of the first units of its
Fibre-to-the-Room (FTTR) gateway to enable the start of the integration
process, similar to the one completed for the XGS-PON platform. Following on
from an initial order that was shipped this quarter, Ethernity has now
received the second order for devices from the Customer under the $4.6 million
contract, for 5,000 units of its Gigabit PON OLT fibre controller SoC devices
for use in FTTR deployments. It is anticipated that these devices will be
ready for shipment to the Customer in Q3 2023. The Company anticipates that
the revenues under this contract will be recorded during 2023 and 2024.

 

Further fibre controller business progress

 

Ethernity has seen growing interest from multiple OEMs for its PON fibre
controller devices and PON systems over and above the current signed
contracts. As a result, the Company will target sales of licensing fees for
its PON fibre controller SoC and sales of its PON fibre controller OLT system
in various configurations. Our newly introduced state-of-the-art UEP3808 PON
system resulted from the partnership with the Customer, based on the
Customer's existing XGS-PON OLT described above. It has already captured the
interest of certain OEMs, as they cited our ability to deliver the PON system
at the right price so as to allow OEMs to take an off-the-shelf platform to
the market, reducing time-to-revenue.

 

David Levi, CEO of Ethernity Networks, commented: "We're pleased to be
progressing our work with this important Customer, including working with them
to identify potential new revenue streams. As a result, we are excited about
the opportunities ahead for the Company. With the business we have in-hand and
the potential for multiple follow-on contract wins, we are excited with these
opportunities that have the potential to bring the Company to new heights."

 

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 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

 Harbor Access Inc (US Investor Relations)                     Tel: +1 (475) 477 9401

 Jonathan Paterson

 

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.

 

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