Business
Operational Update and Cost Reduction Measures
Ethernity Networks Limited has announced an operational update and cost reduction measures due to a lack of anticipated warrant exercises, impacting its cash flow plan. Senior management, including the CEO and VP R&D, will transition to part-time roles to significantly reduce operating expenses while maintaining customer support and R&D capabilities. The company now forecasts 2026 revenues between $1.6 million and $1.8 million, primarily from a Tier-1 U.S. defence and aerospace customer, with potential additional revenue from ASIC licensing and other customer engagements, though these are not yet secured. If revenues fall short of expectations, the company anticipates needing to raise additional funds in 2026. Disclaimer*
About this update from Ethernity Networks Ltd.
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 4 as it forms part of UK domestic law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310) ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain 5 May 2026 Ethernity Networks Limited ("Ethernity" or the "Company") Operational Update and Cost Reduction Measures Ethernity Networks Limited (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data processing semiconductor technology for networking appliances and PON, provides the following operational update. The Company's cash flow plan for 2026 was based, in part, on anticipated revenues from customers and the exercise of outstanding warrants over the Company's ordinary shares. As of the date of this announcement, such warrant exercises have not materialised and, given the current share price, the likelihood of near-term exercise is considered low. In light of this, the Board has implemented immediate measures to preserve the Company's cash and maintain operational continuity. Management Cost Reduction Effective from mid-May 2026, the Company's senior management, David Levi (CEO) and Shavit Baruch (VP R&D), will transition to a part-time engagement of approximately 20% of their previous full-time commitment. This measure is intended to significantly reduce operating expenses while ensuring that management remains available to support the Company's ongoing activities. The objective of this step is to: • maintain support for existing customers; • continue ongoing engagement and business expansion with key customers; and • preserve the core R&D capabilities required to deliver the Company's planned revenues. The Company's aim and objective is to continue operation as a going concern towards a break-even position, while seeking to continue meeting its short-term debt and creditor obligations as they fall due, and maintaining the operational team required to ...
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