Ethernity signs extended licence with military aerospace customer

2nd Nov 2023 10:07

(Sharecast News) - Data processing semiconductor specialist Ethernity Networks announced the signing of an extended licence contract worth $0.48m with an unnamed tier-one military aerospace customer based in the United States.

The AIM-traded firm said the contract followed an advanced payment of $80,000 received from the customer in October, with payments for the contract expected to be received in November and December.

As a result, the total expected revenue from the customer in the fourth quarter of 2023 amounted to $0.56m.

Since 2019, Ethernity had been supplying the customer with its specialised silicon-tuned software, supporting 24GE and 4 x 10GE ports used on AMD's MPSOC FPGA device for a specific platform.

The historical licence fees received from the ongoing partnership amounted to $0.72m.

With the newly-extended licence, Ethernity said the customer would gain access to Ethernity's ENET flow processor intellectual property for use on other platforms.

It said the extended contract brought the total licence fees with the customer to $1.19m.

"The support and excellent delivery provided to the customer five years ago resulted with an outstanding product for the military aerospace market," said chief executive officer David Levi.

"The customer appreciates our support and the quality of the Ethernity ENET flow processor code, and as a result decided to sign on an extended licence agreement.

"I am grateful to the customer who agreed to support the company during the challenging period Ethernity is currently facing, and look forward to continue our long-term collaboration via possible future business opportunities."

At 1453 GMT, shares in Ethernity Networks were up 21.87% at 3.9p.

Reporting by Josh White for Sharecast.com.