Business
Market Update and Proposed EGM
Market Update and Proposed EGM.
About this update from Ethernity Networks Ltd.
[{"type":"text","content":"\n \n \n RNS Number : 1467M\n Ethernity Networks Ltd\n 06 May 2020\n \n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon 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 6 May 2020 \n \n \n ETHERNITY NETWORKS LTD.\n \n \n (\"Ethernity\" or the \"Company\")\n \n \n Market Update\n \n \n and\n \n \n Proposed Extraordinary General Meeting\n \n \n Ethernity (AIM: ENET), a leading supplier of functional acceleration ethernet adapter cards on FPGA (field programmable gate array) for virtualised networking appliances, provides the following update on the business, its markets and the Company's response to COVID-19. \n \n \n The Company has seen some recovery in Chinese markets in which the Company is currently significantly engaged, specifically in the 5G marketplace. The Company continues to experience an increase in engagement with system integrators and operators interested in Ethernity's solutions where these solutions are proving increasingly aligned to the offerings operators wish to make to their customers in their marketplaces, as evidenced by a design win with a large Chinese OEM who are building their 5G UPF offering based on the Ethernity ACENIC-100 FPGA Smart NIC. The Company has recently signed a new design contract with a North American tier-1 telecommunications OEM, as announced on 30 April 2020, and is now in contract negotiations for a new design order in the Summer for a complete hardware and software NIC solution for a Military/Aerospace tier-1 vendor which, on success, would lead to initial milestone revenue followed by recurrent multi-year revenue from 2021. \n \n \n The Company anticipates that its current 5G UPF (user plane functionality) engagements with the Chinese OEMs will lead to a roll-out of up to 2,000 FPGA SmartNIC cards during 2021 at unit prices ranging from $2k to $3k. Additionally, design kit and licensing revenues from existing customer relationships, including those detailed above are anticipated to result in up to $2m of revenues over the next 12 months, on top of the ongoing recurrent royalties and FPGA revenue. \n \n \n Due to the online n...