Business
Significant Contract Win
Significant Contract Win.
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 \n29 November 2023\nETHERNITY NETWORKS LTD.\n(\"Ethernity\" or the \"Company\")\n \nSignificant contract win\n \n· Total contract valued at $800,000\n· Expansion of existing license to cover a wider range of products which should increase future annual royalties\n· Entire amount expected to be collected in Q4 2023\n· As a result of this contract, total cash collection for Ethernity is expected to total:\no $1.5m to $1.7m during Q4 2023; and\no $4.5m to $4.7m for FY 2023\n \nEthernity Networks (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data processing semiconductor technology for networking appliances, is pleased to announce that it has signed a contract for $800,000 (the \"Contract\") with a long-term networking data communications customer (the \"Customer\").\n \nPursuant to the Contract, the Company has agreed to an expansion of its existing licence with the Customer (the \"Licence Expansion\") for the use of Ethernity's \"ENET flow processor\" technology. The Customer has been licencing this technology from Ethernity for over ten years and the Licence Expansion permits the deployment of the technology on a broader range of the Customer's ethernet access system products. The consideration payable for the Licence Expansion is $500,000. The Customer will pay additional royalties to the Company based on the number of uses of the ENET flow processor in the Customer's products, such amount to be calculated on a quarterly basis. Under the Contract, the Customer has agreed to a further payment to the Company of $300,000 as a prepayment against future royalties.\n \nThe full $800,000 due under the Contract is expected to be received in Q4 2023. The $500,000 licence fee is expected to contribute towards the Company's 2023 revenues, whereas the $300,000 of royalty payments are expected to contribute towards the Co...