Ethernity Networks signs big deal with North American OEM

24th Oct 2018 10:01

(Sharecast News) - Network processing technology and products specialist Ethernity Networks has signed a contract to supply its 'ENET Switch and Traffic Manager' firmware to a North American tier 1 telecommunications original equipment manufacturer, it announced on Wednesday.The AIM-traded firm said it had completed the integration of its firmware on the equipment manufacturer's existing fibre-to-the-home optical networking platform, for advanced broadband services with 4K video.It said the contract represented nearly $0.5m in short-term revenue for Ethernity and, given the popularity of the platform and the size of the OEM, was expected to generate an estimated $2m in future royalty streams over the next 30 to 36 months, with additional royalty streams extending thereafter.Additionally, the parties had already engaged in discussions to apply Ethernity's ENET firmware and software to the customer's broadband switch and router platforms, which, if successfully concluded, would "add significantly" to the ongoing royalty stream."We are very pleased to have successfully concluded this agreement with a tier 1 OEM, and we believe this will be the first of many similar agreements with customers in the future," said Ethernity's chief executive officer David Levi."This supply contract confirms that our extensive networking functionality offers tremendous value to the market, and is an example of how we can build strong partnerships with industry leaders."