Ethernity Networks Ltd – Interim Results

Ethernity Networks Ltd – Interim Results

Ethernity Networks Ltd (AIM: ENET.L), a technology solutions provider of network data processing technology for use in high-end carrier Ethernet applications across the telecom, mobile, security and data centre markets, announces its interim results for the six months ended 30 June 2018.

Financial summary:

  • Revenues of $441,247 (H1 2017 $988,995)
  • Gross profit of $299,647 (H1 2017 $857,884)
  • EBITDA loss of $1,111,999 (H1 2017 positive EBITDA $441,292)
  • Operating Loss of $1,276,489 (H1 2017 profit $379,884)
  • Cash and cash deposits balances at 30 June 2018 of $11.9m (30 June 2017 $18.2m). 

 EBITDA

Unaudited

Audited

30 June 2018

30 June 2017

31 December 2017

US$

US$

US$

(1,276,489)

379,884

152,219

42,273

7,051

20,171

Add: Amortisation

122,217

54,357

116,064

EBITDA

(1,111,999)

441,292

288,454

Operational highlights:

  • Successful scaling up of the Company’s sales team with increased reach into international markets.
  • Continued investment in R&D to up scale the company business from an IP/technology company to a complete solutions delivery Company, including the offering of a complete software solution for our SoC business directed to Tier 1 OEMs, and the required smart NIC software.
  • A new contract signed for the Company’s ACENIC 100 Smart NIC…
  • Initiating a design win with a USA tier 1 OEM vendor, expected to result in ongoing royalty streams in the coming years.

Leading on from the annual results for 2017 published in June of this year, to date we have:

  • 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.
  • 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.  

David Levi, Chief Executive Officer of Ethernity Networks, commented: “The first half results are in-line with our expectations with the focus being on the Company moving from an IP/technology provider to a solutions provider for virtual networking and security appliances. They reflect also market place delays around the virtualized networking environment that we have elaborated on earlier in the year, along with the difficulties wherein a historic customer experienced contractual difficulties with their customer resulting in a material decline in business with them during 2017 . In parallel the company has also invested in advancing the current technology to support higher throughput and additional functionality, targeted at Tier 1 OEM’s products, that can generate clear growth and forecasts not just for smart NIC but also for the IP/ technology business.

“We stated in the past that with the funds raised we will be able to contract wins into the Tier 1 OEMs and I am pleased to report that we are in advanced stages of ENET networking software porting into a Tier 1 OEM’s FPGA based platform and  are in the advanced stage of signing a contract with another T1 OEM vendor. The new funding within the Company resulting from the IPO has allowed Ethernity to make the solutions breakthroughs the Company intended that will clearly demonstrate the value of our technology.

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.

“We remain confident that Ethernity will meet its long term objectives and will be positioned as one of the key solutions providers in its marketplace.” 

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