Member Info for Tracylied

Cash burn is nothing like 500k a month. They have been through a massive expansion of R&D to deliver new concept products. They are now field trialled and released to the market. Many one off costs in there. I suspect that the ball ancw currently is more like -$150k a month. $500k plus $400k from legacy royalties plus royalties from this new contract and a couple of others announced and the balance is manageable.
I see absolutely no prospect of this being wound up in 2020. There is huge value in the intellectual property and products to market. Sum of parts well exceeds the current cap no matter how you look at it.
All the company will commit to now us that expenditure is on track and products are on the market with significant traction. They say that the funds raised at 130p will see them into profitability.
I think they are correct but if it results in a fund raising or a fire sale of a product range it will realise multiples if the current cap. The reason is the close integration of the industry in Israel. Hundreds of businesses aligned with HQs in Israel and the US.

The interims tell the story. Human resources are now complete, the teams are assembled. R&D expense has completed the technology goals to develop the current solutions packages. Cash end June $11.2m. Company was running at about a $2m annual loss before the $500k upfront payment and royalties earned this year.
Given that revenue was 400k in the first six months and that revenue stream is ongoing so we can expect towards 1m for H2 plus other new business.
The company state that they have enough cash to achieve profitability.

I don't think that any decision to sell can be based on the business case. There are many reasons to sell and I suspect that despite massive losses some institutions will be under pressure to cut this money pit free.
I can only assume that there must be some visibility over how many they want to sell but they are really being punished. Fact remains that on the market buys have out weighed sells my several multiples.
I think that this is a temporary situation and very soon the illiquid market will play on the upside.
Certainly 60-80p would be reasonable right now and really 130 as in the IPO would not be crazy.

In addition. Where Ethernity state that the release of the Smartnic will be Q4/2018 it was actually released 2 days into Q4.
Ethernity will not manufacture these in all likelihood. They will have some for trial purposes but contracts will be for the OEMs and users to manufacture to their requirements and pay Ethernity royalties and fees for management and maintenance. It's a super model with 100% margins beyond contract.

This was dismissed by the market from the interims.
"Our smart NIC business and new ACENIC100 that supports 100GE, 2x40G, and 8x10G interfaces is gaining significant traction, and as highlighted, we have already signed a contract for the new ACENIC100 in June and are in the process with a few customers that now plan to move into production and deployment with our new ACENIC100"
Considered along with this
"Completed development of the Company's new 100Gb ACENIC100 hardware, that will host the field proven packet processing deployed in half a million platforms to date, planned for release to customers by Q4/18"
and this
"Continued progressing our ACENIC project wins for virtual broadband gateway, virtual router and virtual security gateways, which are in mature integration stages at customers platforms that should result in initial orders of our SmartNIC solution during 2019 and mass production during 2020"
I think that the market is failing to understand the scale of the achievement and the potential for deployment at near 100% margins. Ethernity are already deployed in hundreds of thousands of applications with their current /previous technology. David Levi stated that the market was "going crazy" for Ethernity solutions. I suspect that they have huge traction in the marketplace and that contracts are lining up for the Smartnic and several other peer leading solutions.
The mass production that they talk of will be largely or completely external to Ethernity. The OEMs are tooled and ready to make mass production a reality for their applications.
I believe that we will see the contract process accelerate into 2019.

Looks like a rollover or bed and ISA this afternoon. It is really at the point of making no sense now

I expect 2019-2020 to be the boom time for Ethernity. However we could easily see the share price triple and it would still be cheap.
The opportunity is multi layered from several sources but in reality even just a fraction of 1% of the potential and the price will be in pounds not pence. Until then the price continues to shrink despite higher buying volume than selling. Clearly there is something else unseen occurring.

You can't call any change whilst there are just a couple of trades a day.

I am interested to find out about specifics of any patents that Ethernity. I have read that the technology is patented but that will be small very specific functions.
I see that the software side of NFV is estimated to be $12 billion by 2020 and €3 billion for hardware. Even the smallest slither of that will demand a 10X share price. I believe that we will see many times the multiples.

I have been in shares before where news timed in with shareholder presentations. This is a really odd collection of presenting companies. I think that it was a last minute idea and probably in response to the desperate share price position and emails from shareholders.

One month ago they were in the contract signing phase with another OEM. They have also have had several successful trials that will in due course result in contracts I am sure.
I addition the Smartnic is now available for sale. It seems to be a must have piece of kit. Sales could grow very rapidly

Quite an impressive presentation I thought. Sounded like there were a few people watching at least.
I have little doubt that this will be moving up strongly soon.

All I can see is more buys than sells over a long period. Doesn't make much sense to me. I wonder where they expect the sells to come from. I can only assume that they know something we don't.

Share price continues to be walked down. Really crazy levels at 20p to buy. I wonder if the management are concerned yet. They should be.

Some products certainly have mass market appeal but even these smaller installations will add up as there are thousands of potential customers globally. However once you have something getting more of the same is much easier. The market is very entangled and it won't take long for word to pass.
I think 2019 will bring many more of the same and given the multiple payments of royalties and almost 100% margins profits will soar.
Personally I don't see the share price below £1 mid 2019.

To think that the one deal abd 500k payment exceeded the whole income for the previous 6 months from legacy contracts however the share price did nothing.
Obviously they have much bigger shoes to fill now with many more staff but it's quite revealing. Not just a one off either as the royalties will keep giving on similar levels for years to come. Add in other solutions that this customer is looking at and it looks quite chunky.

Skid I think they all lack knowledge about maintaining the share price and the listing. I think that they will have to get up to speed now or they will lose control of our company.
They are still treating it like they own it but reality is that they have a huge debt to shareholders and need to start paying.

It would be the best investment they ever made.... I hope

https://www.proactiveinvestors.co.uk/companies/news/203506/ethernity-networks-focused-on-the-long-term-as-it-continues-transition-203506.html

Read this a couple of times but still worthy as a reminder.

I wasn't aware either and I have been to lots and are on their mailing list. We have seen a increase in activity from nothing to a gentle jog as far as promotion goes.
I hope that they keep it simple, speak clearly and don't use technical terms.