Ethernity Net Share News (ENET)

(Sharecast News) - Networking semiconductor supplier Ethernity Networks updated the market on its contracts with its Asia-based broadband network original equipment manufacturer (OEM) customer on Monday.

The AIM-traded company said it successfully completed the integration of its XGS-PON optical line termination (OLT) fibre access controller onto the customer's board, and completed interoperability with three third-party optical networking units (ONUs) servicing the end-user network.

Ethernity said it had started shipping its ENET5200 Quad XGS-PON system-on-chip (SoC) controller device to the customer, in line with the contract term, and remained on track to record the majority of the revenue under the $3m contract during 2023.

In addition, the firm said it received the second order for devices from the customer under the $4.6m contract, for 5,000 units of its gigabit PON OLT fibre controller SoC devices for use in fibre-to-the-room (FTTR) deployments.

Ethernity said it expected the devices would be ready for shipment to the customer in the third quarter, with revenue to be recorded in both 2023 and 2024.

"We're pleased to be progressing our work with this important customer, including working with them to identify potential new revenue streams," said chief executive officer David Levi.

"As a result, we are excited about the opportunities ahead for the company.

"With the business we have in-hand and the potential for multiple follow-on contract wins, we are excited with these opportunities that have the potential to bring the company to new heights."

At 1531 GMT, shares in Ethernity Networks were up 8% at 7.83p.

Reporting by Josh White for Sharecast.com.