Business
Contract with North American Tier 1 OEM
Contract with North American Tier 1 OEM.
About this update from Ethernity Networks Ltd.
[{"type":"text","content":"\n \nRNS Number : 9560E Ethernity Networks Ltd 24 October 2018 \n\nContract with North American Tier 1 OEM\nEthernity Networks' ENET Flow Processor Firmware Integrated on North American Tier 1 Vendor's FPGA-Based Fibre-To-The-Home OLT Platform\nEthernity Networks (AIM: ENET.L), a leading innovator of network processing technology and products, announced today that it has signed a contract to supply its ENET Switch and Traffic Manager firmware for a North American tier 1 telecommunications OEM. Ethernity has 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. \nThe contract represents nearly $0.5m in short-term revenue for Ethernity and, given the popularity of the platform and the size of the OEM, is expected to generate an estimated $2m in future royalty streams over the next 30 to 36 months, with additional royalty streams extending thereafter. \nFurther, the parties have 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.\nThe ENET solution was customized to fit the customer's existing OLT platform in addition to Ethernity's core functionality including hierarchical traffic management, switching, and access control list (ACL). Ethernity's patented technology reduced the required die size resulting in a 50% reduction in consumed space within the FPGA and leaving room for greater networking functionality. It is anticipated that future developments, in tandem with the OEM, will integrate additional features of the ENET library to meet future customer requirements, including router, tunnelling protocols, IPSec, bonding, and fragmentation. \n\"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 CEO 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.\"\n\"The decline in the development and availability of network processors on ASICs for ...