Business
Full Year Trading Update
Full Year Trading Update.
About this update from Ethernity Networks Ltd.
[{"type":"text","content":"\n\nThe information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of 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 \n05 December 2023\n \nETHERNITY NETWORKS LTD.\n(\"Ethernity\" or the \"Company\")\n \nFull year trading update\n \nEthernity Networks (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data processing and fibre access semiconductor technology for networking appliances, is pleased to provide an update on the Company's anticipated trading for the year ending 31 December 2023 (\"FY 2023\").\n \nSubject to completion of the FY2023 audit, the Company anticipates that its headline results for 2023 will be:\n \n· revenue of between US$3.6m and US$3.8m (2022: US$2.97m);\n· underlying gross profit of between US$2.4m and US$2.6m (2022: US$1.59m) representing an underlying gross margin of 67%-68% (2022: 54%);\n· EBITDA loss of not more than US$3.8m (2022: EBITDA loss of US$6.4m); and\n· a reduction in monthly operating expenses from US$660k in June 2023 to US$300k in December 2023.\n \nThe Company's current cash balance is c. US$954k. This includes the proceeds of the NIS 1,000,000 short term loan from David Levi, CEO of Ethernity, details of which were announced on 26 October 2023. Under the ongoing temporary suspension of proceedings (\"TSP\") process, details of which were announced on 12 October 2023 (the \"TSP Announcement\"), the Company will be required to agree a settlement with its creditors from the commencement of the TSP. The Board anticipates that the current cash balances, together with the anticipated cash receipts due ahead of the year end (details of which were announced on 29 November 2023), will enable the Company to exit the TSP process. Notwithstanding this, the Company is considering options to raise additional funding to strengthen its balance sheet, which the Directors believe would improve the Company's ability to secure significant contracts with potential new customers.\n \nOutlook\n \nSubject to successfully exiting the TSP, the Company's s...