VSA Capital23 Sep 2020 18:44
VSA have published a 38 page research report - you can get it on Research Tree (I believe you can get a free trial for a couple of weeks). I can't provide a link but here are a couple of bits:
With base revenue from ongoing projects in 2020 continuing in 2021 and with positive progress from the projects
highlighted above, we estimate 2021 revenue of US$6.0m.
Forecasting 2022 revenue becomes an increasingly speculative exercise given that revenue is likely to be dependent
upon 5G projects associated with the three major China based Mobile Network Operators that are still at an early stage
with an outcome that is hard to define. However, SmartNIC deployment in 5G, as discussed earlier, is dependent upon
subscriber volume growth.
For every 10,000 subscribers, a Mobile Network Operator requires a single 100Gb SmartNIC and Ethernity prices this
product at circa US$3k. China, as noted earlier, is undertaking significant roll out of 5G networks. As network use age
volumes increase so does the opportunity for Ethernity as an alternative provider to existing solutions being utilised by
the MNOs.
For 2022, and given the difficulty in accurately forecasting a number, we are assuming, that Ethernity is awarded a small
share initially with China MNOs. 30,000 users would equate to 3,000 Ethernity SmartNIC cards ordered and US$9.0m of
revenue. Given that 1,000 cards are already expected from the 6th project noted in “Ethernity Project Pipeline” table,
the overall 2022 estimate, in our view looks prudent given that projects can be subject to technical and deployment
delays. We estimate 2022 revenue of US$9.0m
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