Business
Design Contract with North American Tier-1 OEM
Design Contract with North American Tier-1 OEM.
About this update from Ethernity Networks Ltd.
[{"type":"text","content":"\n \n \n RNS Number : 4013L\n Ethernity Networks Ltd\n 30 April 2020\n \n \n \n 30 April 2020\n \n The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n \n ETHERNITY NETWORKS LIMITED\n (\"Ethernity\" or the \"Company\")\n Design Contract with North American Tier-1 OEM\n Ethernity Networks (AIM: ENET.L), a leading supplier of data processing offload solutions on programmable hardware for functional accelerating of telco/cloud networks is pleased to announce the signing of a new design contract with a North American tier-1 telecommunications OEM.\n Summary of Key Terms\n \n · Design win contract for Ethernity flow processor technology, including ENET Switch and Traffic Manager firmware, to support 200Gbps performance on customer's xPON optical light termination (\"OLT\") device;\n \n · $495,000 upfront payment to Ethernity of in respect of design fee and prepayment of initial royalties;\n \n · Annual revenue of up to $240,000 p.a. for continued product development and ongoing Ethernity engineering support of the previously licenced technology with the customer; and,\n \n · Anticipated ongoing royalty payments to Ethernity based on expected scale of the deployment OLT platform by the OEM partner from H2 2021.\n This contract represents a further development of the relationship with an existing North American tier-1 telecommunications OEM customer following an initial licensing deal in 2018. Following a successful field deployment of the previously licenced Ethernity platform, the customer has now advanced to deployment of a next-generation product based on Ethernity's advanced technology.\n The Ethernity solution will be customised to fit the customer's new OLT platform, which, in addition to Ethernity's ENET Flow Processor core functionality includes hierarchical traffic management, switching, and access control list (ACL). It will also include Ethernity's new 400Gbps Fabric technology to allow cascading multiple chassis to form a virtual chassis cluster.\n Deployment of the new OLT platform is expected in H2 2021. At such time, a...