(Sharecast News) - Networking processing semiconductor technology specialist Ethernity Networks said in an update on Thursday that, throughout the year to date, it had engaged positively with several potential new customers, including two OEM vendors.
The AIM-traded firm said the vendors, after extensive evaluation of its Universal Edge Platform (UEP), had expressed interest in adopting and launching the product to their customer bases.
Negotiations were currently underway with the vendors for potential contracts that could result in significant business for Ethernity.
Additionally, the board said two more OEM vendors had signalled interest in contracting Ethernity for the delivery of a UEP-based design.
Based on the scopes of work discussed with the potential new customers, potential contracts could contribute between $2.2m and $3m to the company's revenues in 2024, with potential for even higher revenues in 2025 and beyond.
While the board cautioned that there were no guarantees regarding the discussions leading to contracts, it viewed the interest in Ethernity's products as indicative of future growth potential, particularly in sales of complete system offerings combining the company's chip and software stack.
"Ethernity is seeing promising progress with current OEM vendor engagements, including several new ones," said chief executive officer David Levi.
"Such OEMs value Ethernity's programmable UEP, based on our semiconductor technology for ethernet access and passive optical network (PON) fibre access technology.
"Ethernity's technology is offered to its OEM customers via various business models from IP licensing, conversion to eASIC or ASIC, through to delivery of a complete customised system."
At 1545 GMT, shares in Ethernity Networks were up 7.7% at 0.73p.
Reporting by Josh White for Sharecast.com.
Ethernity Net (ENET)