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Me too but the market needs detail. We have invested in knowledge of the goal others have not been so diligent.
I dare to say that since setting my £5-10 target we have added Tarana and DU. It's now looking a bit skinny even from 30p.
Another actually more likely model is a ongoing royalty basis. An upfront on delivery fee and ongoing royalty over the life of product or engaged clients.
This is likely with a risk shared product. This will also encourage the next series of evolution.
Interestingly industry when the discuss market size use $4000 as a ballpark UPF NIC solution unit price.
Must admit, I never saw the Tarana deal coming and didn't think we were in line for a large material non 5G deal. As nuts as a 30p to several £'s sounds I've seen it happen many a time. Shame having patience is so difficult to some (me included)!
I would lower your estimates when doing those sums - SmartNICs are in the $1-3k range and SoCs cost significantly less since they don't come with the full hardware of the card and ports. I'd pitch it somewhere in the $350-500 bracket, no harm in being conservative.
Heavy volume today I hope the 5G fund selling is over soon.
Also, I think that they raised money through the 5g system a few weeks ago to build inventory levels for the SoC product
Hi Sergi the 62,140 is a 'bed and isa' - the sell from a nominee account and the buy in the isa account at a slight premium
no idea, thx bid
Bid please post where that's written because it is certainly not what I am finding. 4 years in development with a joint investment, no design fees.
This is a unique patent protected solution, the patent held by Ethernity. I don't think that this is anything like your numbers.
We have seen several bed and ISA trades since the new tax year. They just cancel each other out. Since Tuesday we have seen few sells. Most red were buys.
Bid your "no harm in being Conservative" is exactly the problem with uk investors. I don't know what it is or why it is this attitude but it is typically British. Better be safe than sorry ah...
Like walking through treacle.
Hi TL, I checked with a guy in my infra team who is a very experienced techy (the company I work for also has a market cap of over £40bn so he's got a decent calibre) .. he came back with that estimate although as you say this has been designed in collaboration so not an off the shelf solution like he was probably referencing. I still think well under $1k though.
Haha yes I must admit it's quite common to want to underestimate.. then you get a nice surprise if you're wrong. However I also can't stand the US style bluster and overconfidence that I come across so often in my industry, it drives me nuts.
I don’t think the market is weighing up unit costs . It’s still not giving a **** about enet. Just got to wait until it does
I go the evidence route myself. The Ethernity ship is not too leaky on this. Not surprising as I doubt many will know the contract details.
The best input I have says that it will be a royalty split. Didn't laugh at $1000 or 4000 as a total per unit cost. He/She thought under $1000 unlikely but didn't know. It is the same person who told me 3 months ago that they were flat out. In fact it is the same who told me about the American suits at Ethernity. Take it or leave it but don't ignore it.
Bid & TL
I think it is going to be a low cost solution but still price per card not lower than $500 because as TL says they have been working 4 years to get the solution, is patent protected, probably there is no alternative and also it comes with the IP/software which is the value added.
I think it is going to be lower t han my initial projection of 2-3k per card and I believe the price per card is going to be somewhat $1-2k
And at a 70% GM
So a unique patent protected, 4 years design and testing.... but low cost solution for a $1bn valued company in their flagship product. Why would you think that.?? Why in 2017 would have Ethernity embarked upon that route given no design payments. Why would they do that
$2000 a card is 5000 x $2000 in 12 months. Do the maths.
"Ethernity has provided Tarana its unique silicon-tuned software, which, thanks to the efficiency of the ENET Flow Processor design, fits into ***low-cost FPGAs***. Working in concert with Tarana's radio technology in its tower-installed base nodes, the ENET Flow Processor provides advanced networking functions, traffic control, and management for up to 512 homes per ENET SoC."
Presumably it wasn't a $1bn valuation back in 2017 and also not their flagship product. It was still good business for Ethernity even at $500-$1000 per card
Yes the fpga are low cost. However Ethernity don't make fpga.
Bid I believe that they were more at the time.
Interesting to look at "typical" mass production curves. It normally has 5-10% allocated in the first three months. So achieves $4m -$8m this tear based on $400k and 12 months 5000 units. Assuming early Q3 means mid July. Certainly significantly more than the December projection.