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(Alliance News) - Ethernity Networks Ltd on Friday reported double-digit revenue growth in 2019 but said its loss widened due to an increase in expenses.
The Israel-based chip flow processors company said revenue in 2019 increased by 20% to USD1.3 million from USD1.1 million, but pretax loss widened to USD4.5 million from USD2.5 million.
Ethernity Networks said its research & development expenses jumped to USD2.9 million from USD473,489 a year prior. The company said it will cease capitalisation of research & development expenditure from July until there is greater clarity on Covid-19.
Ethernity Networks warned that, following the conclusion in 2019 of the delivery associated with a licensing contract, a new project with an undisclosed US aviation firm was originally planned to commence in the second quarter of 2020. However, due to the impact of Covid-19, the company said the customer has estimated a delay in the programme development to be between six to twelve months.
Looking forward, Chief Executive David Levi said: "I am encouraged by the fact that, finally, the telecom cloud and NFV market combined with the data usage requirements of 5G has been realised and, despite the uncertainty resulting from the Covid-19 pandemic, is now positioning towards mass deployment, allowing the company to fulfil its goal. I am hopeful that the growing momentum around our 5G UPF acceleration solution will lead to the achievement of large scale growth in the coming years."
AIM-listed Ethernity Networks shares were trading 8.9% higher in London on Friday at 21.24 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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