Member Info for Tracylied

The market is unchanged after the large after hours trade 3 on 18p, 2 on 19 and 1 on 19.5. I assume that it was known about and they traded against it all day Friday. A bit if volume and it will rise again. 20p next stop.

It's important to recognise that 5G is full of multiple challenges and not many are actually in the same market. Ethernity are unique in that they work in layer 2 and 3. This is why some contracts will be using ACEnic-100 but nothing else from Ethernity. That's why I say that Ethernity will end up in many installations.

"We have therefore taken the strategic decision to focus on porting the ENET flow processing features on the ACE-NIC100 to accelerate performance of the 5G UPF data plane. This has resulted in multiple engagements and design wins for our ACE-NIC100 during the first half of 2020 with the potential onward conversion to multiple delivery contracts during H2 2020 and into 2021"

This is in writing from Ethernity in their results.
Design wins is a confusing concept. Basically their is a standard design kit where scenarios can be played out. All Ethernity products are standard kit compatible and vendors use this to run different specs to determine how to proceed. This will be done with a Ethernity tech overseeing the process working with the vendor. Several options will compete. Some lead straight to adoption and development some are for problems not immediate. The last 9 months has been this phase. Beyond the product will be lab tested largely for stability by the vendor for large or critical deployments.
You must understand that the Telecom will then sell many packages to clients so they need to test under multiple circumstances.
Ethernity are not the only player, I believe that they are the best. They will boom on just a tiny share but should secure a large share. Ethernity will be in most of the leading products along with many other vendors but they will not be exclusively Ethernity.
Out of the whole industry Ethernity is the only viable option with a decimated share price.
There is your opportunity.

Ethernity 5G UPF accelerated performance solution intended for lab testing by the largest Chinese operators during Q4 2020.

The increased drive from the Chinese markets, focused on building a 5G mobile network based on NFV, was the sign we have been waiting for over the last two years. It is based around the building of the edge compute virtualised network together with a need for extensive performance, for which Ethernity technology is the best fit, providing greater value added solutions that are appreciated and demanded by our customers. We have therefore taken the strategic decision to focus on porting the ENET flow processing features on the ACE-NIC100 to accelerate performance of the 5G UPF data plane. This has resulted in multiple engagements and design wins for our ACE-NIC100 during the first half of 2020 with the potential onward conversion to multiple delivery contracts during H2 2020 and into 2021.

Worth refreshing.
"Direct relationship in place with three major telecom service providers in China - China Mobile, China Telecom and China Unicom - each either planning to use an FPGA SmartNIC offering for 5G UPF for integrating their own open UPF software to be offloaded by the ACE-NIC"

"With 5G and NFV paving the way for deployment and with the breakpoint advantage offered with our ENET flow processor running on the ACE-NIC FPGA SmartNIC, the Company is now fully focused on obtaining market share in the 5G network, starting with the 5G UPF, and then moving deeper into other elements of the 5G infrastructure, being the 5G Cloud RAN (Radio Access Network) elements such as Central Unit (CU) and Distribution Unit (DU) which are all based on NFV technology and implemented on a computer server that requires ENET's FPGA SmartNIC with data processing offload functions"

"Our estimated total addressable market for the next five years for NIC cards required for acceleration of 5G UPF is $1.2Bn, which the Ethernity ACE-NIC product family can address. This is based on the assumptions that a 100Gbps performance will serve 10,000 5G users, and with the market analysis (depicted in the Annual Report) that forecasts a total of 3 billion users by 2025. Within this we anticipate a market need for 300,000 FACs for 5G UPF over the next 5 years, commencing in 2021 with growth ramping up exponentially from 2022"

"As a result of the market's intentions for 5G NFV based deployment, and the growing engagements with customers for our ACE-NIC family that embeds a Router-on-NIC implementation, the Company has continued and is now focussing its efforts on the ACE-NIC offering for acceleration of the 5G NFV based solution, deferring other activities, with the main goal being to capture a greater market share of the upcoming 5G market"

A decent week for Ethernity, up a couple of pence a share and another week closer to Q4 and lab testing of Ethernity product performance.
It is not clear if this testing is for a deployment decision, to confirm spec or to customise their solutions.

Maybe but I think that liquidity will be an issue until the warrants are triggered. Hopefully some will sell for 10p instant profit.
I think that the warrants will be seen as a trading opportunity by some. Sell on trigger buy back on any selling. That will be a big mistake I think.

I don't think that we'll know until Monday when we see the opening positions.

Yes interesting. Looking at the time it's interesting that they settled on 16p. I wonder if all the MMs had access hence taking sales over 16p although 5 were sat on 16p for ages.

No real surprise, overwhelming buying and the share price pops up a bit. I suspect that the story is slowly attracting some attention. Very early days still and sub 50p is a crazy price. Sub £1 is very cheap in my opinion.
The whole sector will attract huge attention over the next 12 months. I think that from October onwards we'll see major vendors start assemble mass deployment scenarios. Ethernity will definitely be involved in some in China. I suspect multiple bit parts, multiple ACEnic-100 applications. Some turnkey solutions and lots of ACEnic-100 installations with vendors code and some ethernity solutions. What is very clear is that one solution won't take it all, many will be winners and installations will be hugely diverse. However CU and DU functions will likely be the same. Ethernity could well take that with many vendors. 2000 sales in 2021 looks very Conservative to me but we must understand that this will start small and accelerate quickly. China critical mass probably by 2023 when most of the Country is connected and 5G enabled services can really gain volume.
I believe that we'll see a dividend payment from year ending 2022 paid mid 2023. Seems a long way off? By then I expect the share price at £5+

Maybe 2-3 years later than I first hoped but it's coming.

Nice work. Good to see some buying today zero sells. Absolute gift.

Happy days. Just SCAP on 17p

Try now ARDA have moved

Bid they have tripped one by one, not much between here and 19p

I think China will be getting a lot of press. Smart money will be looking at the 5G players for winners and losers. Expect the circus to come to town about October.

All buys today.
Level 2 looking loaded for a jump up.
STFL now 14.5 and 19.5
Just 2 left on 16p for 1500 each.
MMs walking this back up. I suspect several are building positions. I was thinking 20p this week but probably Monday or Tuesday now

Spending Summer cruising the Eastern Med. This year it has been tough getting Marina space and I have been bunkered twice now. Israel and now Turkey.

You probably guessed I am bored. Stuck waiting for permission to leave Port and running out of light.

PEEL join WINS at 14p and come off the 16p ask to 19p. PEEL have shown their hand, they need your shares. The others will fall. Not much between here and 20p.

Rollover from 4th and 5th August still unsettled. Amount to 500k.