RE: Investace11 Sep 2024 18:31
update
In 2024 to date, Ethernity has made positive commercial progress and is currently executing multiple customer projects, whilst simultaneously engaging in active discussions with prominent global OEM potential customers.
Over the past several months, the Company has been engaged in discussions with two Tier-1 wireless backhaul solutions providers. They both have prior experience with the Company's technology, and one has been successfully testing Ethernity's solution for the past nine months. Whilst no contracts have been entered into to date, these vendors have expressed an interest in Ethernity's technology and solution, as they believe that it would enable them to gain market share while also improving their gross margins.
To meet this anticipated demand, Ethernity intends to leverage its significant skill and know-how as a networking technology provider, along with its existing patented ENET data processing technology, to develop a higher-performance networking device at groundbreaking lower cost to capture different Carrier Ethernet uses cases and to support our customers' growth opportunities. Based on these engagements with wireless and mobile backhaul OEM vendors, the Directors believe that there is an addressable market that could enable the Company to achieve significant revenue growth over the coming years and the Board aspires to reach annual Group revenues of not less than $35 million in five years. The Directors believe that Ethernity is strategically positioned to capitalize on a unique transformative business opportunity within the growing FrontHaul/Backhaul mobile industry, driven by the ever increasing demand for more bandwidth driven by mass migration to cloud based solutions.
Over the period of the last two months, the Company has signed two contracts with prominent Tier-1 U.S based customers:
· a $1.05m licensing contract with Tier-1 U.S based aerospace system solutions provider (announced on 28 June 2024); and
· a $200k product enhancement order with an existing Tier-1 US based broadband equipment vendor (announced on 13 August 2024).
As previously disclosed, the $1.05m licensing contract involves Ethernity delivering its silicon-tuned software to enable specific networking functionalities on the customer's unique platform. The project remains contingent upon the customary U.S. Government approval for such aerospace initiatives and this is expected to be received imminently. In anticipation of this approval, Ethernity has delivered the initial project milestones, such that as soon as U.S Government approval is obtained, it will trigger immediate payment of 40% of the contract value. Moreover, Ethernity's technical teams have been diligently collaborating to train and familiarize the customer's personnel with the Company technology, ensuring their readiness to further expedite development progress once U.S. Government clearance has been obtained.
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