Ethernity inks new contract with existing OEM customer

5th Aug 2020 10:43

(Sharecast News) - Networking processing technology group Ethernity Networks said on Wednesday that it had signed a new contract with an existing St Petersburg-based original equipment manufacturer to upgrade an existing hardware platform with new field-programmable gate arrays firmware.
Ethernity said the agreement provided for stage payments totalling $190,000 on a milestone basis during 2020 and 2021, followed by ongoing product sale revenues anticipated at between $80 to $150 per Ethernity ENET System-on-Chip.

The AIM-listed group added that its Russian customer anticipates shipment of around 10,000 units during 2021, which would lead to additional product revenue in excess of $1.0m to the firm.

Ethernity's vice President of products and business development Oded Bergman said: "Today's CPE deployments have become more advanced, with multi-gigabit throughput and SD-WAN. SD-WAN enables flexible deployments and higher level of control across the network.

"Traditional software-based access infrastructure cannot handle the required levels of throughput for such network designs, and ASIC-based CPE cannot provide sufficient agility, so companies are turning to FPGA-based solutions. We look forward to helping bring this product to market."

As of 1040 BST, Ethernity shares were up 9.33% to 16.40p.