REG - Ethernity Networks - Operational Update and Cost Reduction Measures

Ethernity NetworksAnnouncement

05/05/2026 07:00

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RNS Number : 9060C  Ethernity Networks Ltd  05 May 2026

The information contained within this announcement is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014 4 as it forms part of UK domestic law pursuant to the Market
Abuse (Amendment) (EU Exit) regulations (SI 2019/310) ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR. Upon the publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the public domain

 

 

5 May 2026

 

Ethernity Networks Limited

("Ethernity" or the "Company")

 

Operational Update and Cost Reduction Measures

 

Ethernity Networks Limited (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier
of data processing semiconductor technology for networking appliances and PON,
provides the following operational update.

 

The Company's cash flow plan for 2026 was based, in part, on anticipated
revenues from customers and the exercise of outstanding warrants over the
Company's ordinary shares. As of the date of this announcement, such warrant
exercises have not materialised and, given the current share price, the
likelihood of near-term exercise is considered low. In light of this, the
Board has implemented immediate measures to preserve the Company's cash and
maintain operational continuity.

 

Management Cost Reduction

 

Effective from mid-May 2026, the Company's senior management, David Levi (CEO)
and Shavit Baruch (VP R&D), will transition to a part-time engagement of
approximately 20% of their previous full-time commitment. This measure is
intended to significantly reduce operating expenses while ensuring that
management remains available to support the Company's ongoing activities.

 

The objective of this step is to:

 

•      maintain support for existing customers;

•      continue ongoing engagement and business expansion with key
customers; and

•      preserve the core R&D capabilities required to deliver the
Company's planned revenues.

 

The Company's aim and objective is to continue operation as a going concern
towards a break-even position, while seeking to continue meeting its
short-term debt and creditor obligations as they fall due, and maintaining the
operational team required to support customers and revenue generation.

 

Outlook

 

The Company now targets revenues in the range of $1.6 million to $1.8 million
for 2026, based on existing customer engagements, principally the ongoing
engagement with the Company's Tier-1 U.S. defence and aerospace customer.

 

In addition, the Company has several ongoing commercial opportunities,
including ASIC licensing activities, as referenced in previous announcements,
and additional engagements with existing customers. These opportunities are
not yet secured, and there can be no certainty as to their outcome, timing, or
potential contribution to revenues. Should the revenues not materialise in
line with the expectations set out above, it is anticipated that the Company
would be required to raise additional funds in 2026.

The Board will continue to monitor the Company's financial position closely
and will provide further updates as appropriate.

 

For further information, please contact:

 

 Ethernity Networks Ltd                                        Tel: +972 3 748 9846
 David Levi, Chief Executive Officer

 Tomer Assis, Chief Financial Officer

 Allenby Capital Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 3328 5656
 James Reeve (Corporate Finance)

 Amrit Nahal (Sales and Corporate Broking)

 CMC Markets UK plc (Joint Broker)                             Tel: +44 (0)20 3003 8632
 Douglas Crippen

 ALBR Capital Limited (Joint Broker)                           Tel: +44 (0)20 7562 0930
 Lucy Williams / Duncan Vasey

 

About Ethernity Networks

Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF) provides innovative and
comprehensive networking, security and PON semiconductor technology that
enhances the capacity and efficiency of telco/cloud network infrastructure.
Ethernity's silicon-proven logic provides advanced data processing
functionality for various networking applications, alongside patented wireless
access technology, patented routing technology and passive optical network
(PON) controller. These are complemented by robust control software boasting a
rich set of networking functions. Ethernity's technology adaptable solutions
accelerate time-to-market and facilitate the deployment of 5G services over
both wireless and fiber infrastructure.

 

Forward-looking statements

This document contains forward-looking statements. Those statements reflect
the current opinions, evaluations and estimations of the Company's management,
and are based on the current data regarding the Company's business as is
detailed in this document and in the Company's periodical, interim and
immediate reports. The Company does not undertake any obligation or make any
representation that actual results and events will be in line with those
statements, and stresses that they may differ materially from those
statements, due to changes in the Company's business, market, competition,
demand for the Group's products or services, general economic factors or other
factors that can influence the Company's business and results, due to the risk
factors that are detailed in the Company's communication, and due to
information and factors that are currently unknown to the Company's management
and that, if known, would affect the management's opinions, evaluations or
estimations. The Company will report the actual results and events according
to its legal, accounting and regulatory obligations, and does not undertake
any other obligation to report them or their deviations from the
forward-looking statements.

 

 

 

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