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Digging into old news I learn that the Chinese OEM building their UPF solution aren't just using the ACEnic-100 but Ethernity code firm and soft.
I also found that at this point they had completed extensive testing.
I guess that they were well satisfied with the performance and price.
Alliance News2 April, 2020
The network processing technology developer also said it has received a new engagement with a "prominent" Chinese original equipment manufacturer to deliver an integrated offering for the Chinese market.
Ethernity said the opportunity with the manufacturer came after completion of testing by the undisclosed Chinese company, which plans to port Ethernity's software and firmware onto its own hardware.
"The order to provide ACE-NICs to a major Chinese operator and the new project kick off demonstrates the further progress of its UPF offering into the Chinese market. Ethernity is focused on increasing 5G UPF customer engagements now that we have the best-in-class system solutions to address these needs," said Ethernity Chief Executive David Levi
This product will be a winner for sure. Not just the pay as you scale aspect but the performance and flexibility.
I think 5G has many speculators just not in the UK. Once we see money coming in value will come. News that a Telecom in China has sanctioned the use of the ACEnic-100 in UPF it is going to be easy to see how many units that will be. They often talk of their rollout plans. Base stations seem to be on or ahead of schedule. Next task is to connect, that is where Ethernitys ACEnic-100 is needed. Literally we are close now.
I think I’ve got it, every other aim investor must be a conspiracy theory phone mast burning Yoghurt cardigan wearing flat earther. It’s the only logical explanation !! Bored
Well sooner or later China has to buy something to connect in Volume to 5G. Sales won't start in volume until then. I believe that the market knows plenty for a moderate valuation over £1 currently. However speculative investors are very thin on the ground in the UK especially on the AIM. Plenty of £1000 gamblers looking for a quick profit on news. However there are plenty of investors for long term dividend plays even on the AIM.
I must say that I don't seek any reassurance from the company. It is dull but it is always the way when waiting for something nearly 18 months behind your original schedule.
Plenty of reassurance to be had in the fact that in China they will use fpga on their aggregated networks. Ethernity are in with a solid chance of securing a big chunk of a billion pound market.
I am just saying that it would be very reassuring to us all if Ethernity could avail
of the funding generated by the exercise of the warrants but this would entail the share price jumping dramatically. Will we get any positive news to drive the SP to 30/40p?.
I await with interest.
I would like to see more OEMs take ACEnic-100 to build their product on. We know of two major integrators but more would be nice. It is a numbers game.
Sales will flow through OEMs, Integrators and through third parties like Techtronics. Very little will come from Ethernity. Some integrators no doubt will resell the Ethernity UPF for royalties.
The sales will start end Q4 and build up through 2021 into mass deployment. 2022 we can expect volumes 10x 2021 as users connect.
The pay as you go option will be highly attractive.
Yes and it will be like that until it happens, then it will be too late to buy any.
This type of investment takes a certain view. These are times to accumulate before the events. If my first funds clear today I will pick up a few whilst it's quiet
Great to hear about the company's impressive technology but in the meantime no move or interest in SP, no revenues, no deal news, no sign that warrants will be exercised unless SP hits 30p and then 40p ( likely?), cash issues .
Still hopeful but beginning to wonder !
They will carry stock and have access to immediate stock. Ethernity are paid by Techtronics not by the end user so payment will be swift which helps now. Currently integrators and OEMs will buy maybe 5 units to play with to build their product on. Some of the development is virtual on standard development kit. That is one of the big advantages Ethernity has.
I knew from research they were huge, they actually have their uk offices round the corner from me in marlow.
Makes a great deal of sense now from an operational and working capital perspective from ethernity. Also for techtrnics to get involved they must see the value and potential of a sizable piece of business (compared to their billions of revenue), this gives a good deal of comfort.
Skid they are huge. The part of the business Ethernity are with supplies just in time components to the manufacturing of electronics industry. Companies like Samsung. They source, integrate and supply over the long term guaranteeing available at the right place and right time.
Many household names use them to source, power circuits, processors and components. Like RS but on a bigger scale and to industry leaders.
They are well connected to Telecom.
Many years ago I bought into a rubber recycling business in Mexico. Bit random but it looked well priced. They were seeking finance to build a plant to recover rubber and to make the product for manufacturers. The company was Spanish and listed in Spain. They secured funding and I got in at a good price and added over about 12 months. In that 12 months they built the plant. The day before it opened the share price was at a all time low. They built on budget, the market was strong and confidence was high. The price was low because speculative money was leaving and a new investor type had not yet arrived. Within 6 months they had ramped up and were selling profitably. Now the new investor type arrived. Derisked and hunting dividends.
Not hard to overlay that experience here.
Was really confused at the time on techtronics as a distributor with their background in fairly simple low level equipment. Now understand if the volume is there at the level you describe this makes sense.
Fiberhome and TietoEVRY are our scale opportunities for sure. OEMs when successful at securing business will be more modest but Ethernity could secure the bulk of the market through this route. Certainly in China UPF is likely to require 300000 units simply for that function. Then the DU and CU requirements will add much more. This huge potential market will provide both sales revenue and ongoing income.
It's important to understand the below. As has been suggested here about waiting for big contracts it just won't happen like that.
We have seen two Asian OEMs contract to the use of Ethernity's ACEnic-100 to develop their solutions upon. We have seen TietoEVRY and Ethernity join forces to market a joint product. We see the 3 major Chinese Telecom recognise the need for these solutions. At least one has committed to an ACEnic-100 based solution.
The OEMs, integrators (like TietoEVRY) and retailers with extensive tech support like Techtronics are our route to market.
Hence there won't be any modest deals like we have seen for the old business model. What we will hear about is product line, engagements and then sales figures.
It is important that we all know what success looks like.
"With the disaggregation framework that is progressing within the CSPs, they create inhouse software development teams with the intention of delivering their own inhouse UPF software based on open source frameworks, or to purchase the UPF virtualised software from one vendor, and server and FPGA SmartNICs from another vendor. In such a case delivery to the CSP will be dealt with by system integrators, such as TietoEVRY, server manufacturers, the company's OEM customers, or other channels that will supply and support the deployment at the CSP. In any event the Company does not plan to sell its products directly to the CSP for large scale deployment and intends to deliver to the market through the above channels"
China is such a hard place to acquire information. I really want to know who the large Chinese OEM is that has developed their UPF solution on Ethernity ACEnic-100. The reach initially (12 months) is expected to be up to 2000 units. It won't take many of these to make sense financially. Generally the consensus is that 2022 will see 10x the volume deployments of 2021. Of course that won't just switch on and we'll see evidence of ramping up for sure. Question is at what point will we see interest from the market. I don't think that it will be anything David says or a broker says about Ethernity. I am patient and will be here for the main event with enough to make the 5 year journey worthwhile.
I’ll be looking to add a few over the course of the next month. Decided to increase my holding a while back after the placing. This remains a no brainier for me. Just a matter of time. Aim provides the opportunity
Yes looks that way. Better day for volume but still desperately low. Buys and sells here are needed to push the price up.
18,015 + 16,985 = 35k .. wonder if they're filled that order finally??
It is how I have always done it. I think that my largest trade was just a couple of thousand
I suppose you can put that theory to the test with your next round of buys TL :)
What we need are multiple small buys. A large buy just stalls this share. £2-3k multiple purchases go through and create movement.
I think that we can assume that despite 4 MMs on 17 that between them they don't have much to sell