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JamesDNO
There is still the $2m to convert.
Re further options, there’s always further options for financing, it’s definitely not a black and white situation, 12 months to success or failure, all shades in between.
Note the company did what amounted to a rescue funding at 12p just 2 years ago.
Have a read of this. History repeating itself. Does it ring any bells? Absolute muppet!
. Levi previously founded another company, BroadLight, acquired by Broadcom in 2012 for $230 million. Before that, however, the venture capital funds that invested in the company diluted the founders' holdings, and it looks like Levi was burned by the fund, and preferred to do things differently with Ethernity.
https://en.globes.co.il/en/article-ethernity-networks-up-36-in-two-week-since-ipo-1001196578
Dallo
Re ‘it must act accordingly’.
What do you suggest they can do? 5G is poised to take another big chunk of the equity with the disastrous further $2m that MR has entered into.
What do you make of this statement from 6 months ago?
Laughable really if it wasn’t so painful! Ouch!
Mark Reichenberg, the Ethernity CFO said "The Company would like to thank 5G Fund for committing to the agreement in September last year and for their continued support through the duration of the agreement to this final investment. 5G Fund has been a supportive and flexible funding partner for Ethernity, and its investments have provided the Company with significant working capital during this transformational period of time during which the Company's activities increased exponentially."
Just worked out these guys have raised an amazing £28m since listing in June 2017.
if there's one thing they excel at, its raising cash. They've managed to 10 bag in reverse, from the peak share price.
Current market cap, c £14m, so for every pound invested in this bunch of chumps they've managed to turn that into 50p!
Well done guys.
The only major winner in all this has been 5G IF who've creamed off 10m shares flogged to us pi's, all whilst DL et al are telling us of exponential growth, fully funded, at the winning line and all the other porkies they've trotted out over the years.
Time to call them out.
I believe the sp may be reflecting the fact that our ‘supportive funder’ may be able to get their mitts on a substantial % of our company for their $2m.
What a disastrous form of funding this has been. Can’t see DL being too happy when MR tells him you’ve just been diluted by 20% for a pittance!
I understand from the investors meet that MR said it wasn’t 5G selling!
They received notification on the day of the investor meet, how ironic!
I don’t think the brokers note has helped. Forecast $13m sales over this year snd next, when ENET were guiding in excess of $20m a few months ago.
They need to get their act together.
Clear, consistent communication required!
Ethernity’s New Remote Access 5G Core Setup
https://ethernitynet.com/ethernitys-new-remote-access-5g-core-setup/
ENET trying to make it easy as possible for potential customers to check out the savings and performance improvements using ENET’s UPF solution.
Further extracts
2023: $5.0 million of orders contracted. Importantly, significant further growth over 2022 is expected from both additional orders from existing contracts and further contract wins. FPGA SoC: Revenue growth expected over 2022 relating mainly to existing committed orders from customers. Upside comes from further follow-on deployments in existing customers’ platforms that already embed the Ethernity ENET FPGA SoC and Flow Processor. System Platforms (UEP and ACE-NIC): Resulting from the UEP revenue anticipated for follow on orders for the Contracted UEP Module, other new business under negotiation for the UEP cell site router, and ACE-NICs for 5G and vRouter markets. The company’s 2022/23 outlook is optimistic, and the business appears to be scaling well on the top-line (backed by up new orders). This is a revenue/gross profit story, in our view. In terms of additional features of the ENET financial model, we highlight: Long term gross margins to trend towards the 60% – 70% levels, vs the 2021 gross margin, 73.8% (85.4% in 2020). The gross margin will still vary according to the revenue mix as Royalty and Design Win revenues are at c100% gross margin before any sales commissions. On our published forecasts, ENET will continue to be loss making in FY 2022/23, before turning a small EBITDA profit in FY24. On our forecasts, ENET is funded to cover cash burn through this period.
Extracts from note
Outlook and Forecasts ‘The Company expects significant revenue growth from its FPGA-based programmable system solutions and FPGA SoC, coupled with further growth in the FPGA Router-on-NIC’. ENET has then helpfully provided quite detailed guidance on underlying revenue expectations for FY22 and FY23. The company is upbeat on order flow and the visible and cumulative revenue outcome 2022-23. In a previous 2022 RNS, Feb 14th, ENET guided to c$20m revenue (cumulative) over 2022-23. We also note the difference between contracted and potential (pipeline) revenue. In our view, contracted revenue should be seen by investors as ‘base level’ expectations (purchase orders submitted and signed). We break out 2022 and 2023 expectations separately. This is the basis for our forecasts. 2022: $4.5m contracted revenues, from existing customers. FPGA SoC revenues expected to significantly increase YoY: attributed to revenue associated from the orders in place mainly from the U.S fixed wireless system provider and a PON Chinese OEM custome
Few points from the note might be worth asking about today.
They say sufficient cash till modest profits in 2024.
How many placings does this mean!!!!
Also forecasts are for $4.5m this year, $8.9m next year.
That’s way below guidance of in excess of $20m as per recent RNS from ENET.
The note only counts ‘in the bag’ deals, even so, why so conservative? Least we hope it’s conservative!
You can get the note for signing up for Research Tree’s £8/month 3 stocks service then just cancel in the free subscription period, so costs nothing.
ENET is trading at c24p at current levels. This is near the bottom of its 52-week range. This weak share price pattern is not uncommon amongst AIM-quoted Tech stocks. In our view, it creates a strong buying opportunity, with further contract wins a further catalyst. The company is well funded, following recent equity fundraisings. We reinitiate research coverage with a Buy recommendation, 65p target price. Our valuation methodology is based on discounted EV/Revenue multiples, on a risk adjusted basis.