Batm Advanced Regulatory News (BVC)

LEI: 213800FLQUB9J289RU66

17 June 2019

BATM Advanced Communications Limited

("BATM" or "the Group")

BATM to launch market-leading solution under NXP Semiconductors partnership

New NFVTime technology significantly enhances NFV performance with NXP processors built on Arm technology

BATM (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, announces that it has developed a new technology under its long-standing partnership with NXP Semiconductors N.V. (NASDAQ: NXPI) ("NXP") to enable a significant increase in network traffic, without requiring an increase in computing power, when licensing the Group's NFVTime on certain NXP processors built on Arm core technology. It represents the completion in delivery of a key milestone under the Group's strategic agreement with Arm.

The new technology, which has been developed by the Group's wholly-owned subsidiary, Telco Systems, will allow large enterprises and operators to achieve significantly superior performance levels on a cost-effective small to medium uCPE solution. It achieves this by enabling all virtual open switching to be conducted by already existing hardware components (offloading from the CPU load), which improves processor performance and frees valuable processing resources.

Telco Systems' performance tests of this solution compared with standard software-based virtual open switching have demonstrated a three to five-times increase in virtual network traffic. Another key achievement was approximately halving the latency rate despite the increase in data being sent. In addition, by freeing processor resources, more Virtual Network Functions ("VNFs") can be run or higher VNF performance can be achieved. As a result, customers can benefit from significantly increased performance without being required to increase computing power that would result in greater device size, power consumption, operational efforts and, consequently, cost. This provides a substantial advantage in using virtual networks.

This advanced hardware offloading capability, which enhances the performance of the Group's NFVTime network virtualisation operating system, is integrated with NXP's Layerscape® LS2088A and LS1088A multicore processors, which are based on Arm technology.

Dr Zvi Marom, Chief Executive Officer of BATM, said: "The development of this new solution represents another significant step forward in our network function virtualisation strategy and another milestone delivered under our agreement with Arm. Through bringing this capability to NFVTime, in partnership with Arm and NXP, a major supplier of Arm technology-based chips, we'll be able to offer customers major performance enhancements compared with competing offers without increasing their costs. We are confident that this solution will be well-received by the market. As we continue to advance our technology, users of our solutions will be able to gain even more from their networks and optimise performance."

"NXP's Layerscape multicore processors implement a balanced mix of CPU cores, hardware acceleration and high-speed I/O to deliver efficient networking performance for today's virtualised networking tasks," added Tareq Bustami, Senior Vice President and General Manager for Digital Networking at NXP. "Combined with Telco Systems' optimised NFVTime software platform, the solution will enable more efficient and cost-effective customer premise networking."

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