Business
Trading and Market Update
Trading and Market Update.
About this update from Ethernity Networks Ltd.
[{"type":"text","content":"\n \n \n RNS Number : 8712D\n Ethernity Networks Ltd\n 24 February 2020\n \n \n \n \n 24 February 2020\n \n \n \n \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 \n ETHERNITY NETWORKS LIMITED\n \n \n (\"Ethernity\" or the \"Company\" or the \"Group\")\n \n \n \n \n \n Trading and Market Update\n \n \n \n \n Ethernity (AIM: ENET.L), a leading supplier of data processing offload solutions on FPGA (field programmable gate array) for virtualised networking appliances, announces a trading update for the year ended 31 December 2019 and a market progress update.\n \n Trading update\n \n For the year ended 31 December 2019, the Company traded in line with management expectations, and subject to any adjustments upon audit, expects to report Group full year revenue approximately 20% ahead of the prior year. Operating costs in H2 2019 (prior to IFRS 16 adjustments) decreased by approximately 5% compared to the first half. In addition, as part of the year-end process the Company intends to review its R&D capitalisation policy and capitalised asset values for 2019 and subsequent years.\n \n The Company has continued to progress engagements on SmartNIC and UEP offerings. Whilst certain anticipated contracts with Tier 1 OEMs, previously expected to close during the first two months of 2020, have been delayed due to issues outside the Company's control, ongoing active discussions are continuing.\n \n The Company expects to receive orders for new design projects from existing customers during the course of Q2 2020. These orders would comprise a new design under the existing IP business in the Cable Modem Termination System and Passive Optical Networks OLT markets and a complete industrial NIC card for the Aviation market following a previously completed project win from 2018.\n \n The engagements with, and indicative feedback from customers and potential customers gives the Board confidence in the outlook for the year ahead.\n \n Market update - the 5G and NFV market\n The ...