Ethernity signs another American OEM deal

21st Nov 2018 14:51

(Sharecast News) - Network processing technology and products company Ethernity Networks has signed a contract to supply an unnamed tier 1 North American aviation and defence original equipment manufacturer (OEM) with its 'ENET' switch/router firmware and software, it announced on Wednesday.The AIM-traded firm said it would integrate its firmware on the customer's FPGA-based avionics platform.It said the contract represented $0.4m dollars in short-term revenue for Ethernity, with additional future royalty streams.The agreement was the second announced contract with a Tier 1 OEM for Ethernity within the past month, following its announcement on 24 October of a similar networking functionality contract with a tier 1 OEM's FPGA-based optical networking platform.Ethernity said the total short-term value of the two deals could reach as much as $1m, with "considerable" ongoing annual royalties.The two recent contracts also represented a "significant change" in the market in which vendors built FPGA-based platforms as their preferred vehicle for deployments with multiple applications, Ethernity explained, including networking functionality.It said that trend, when added to the new 'Open Compute Platforms' (OCP) based entirely on FPGAs and the adoption of FPGA-based SmartNICs, should result in greater business opportunities for Ethernity's patented 'ENET Flow Processor' technology."This contract further confirms that our extensive networking solutions bring tremendous value to different sectors of the market at the tier 1 OEM level," said Ethernity chief executive officer David Levi."This further enables us to build strong partnerships with industry leaders in the various markets that require customised networking solutions."Lee said the established business model would serve as the "foundation" for the anticipated product revenue growth from the company's new ACE-NIC100 FPGA-based SmartNIC.Ethernity vice-president of international sales, Rob O'Hara, added that the company was "very pleased" to have been chosen to partner with a "well-respected" aviation manufacturing company."I believe this to be an indication of Ethernity's prominent position in the market for best-in-class networking processing and security technology for FPGA platforms."