07:00 Thu 04 Jan 2018
Ethernity Networks - Trading Statement
("Ethernity" or the "Company")
Trading Update
The trend highlighted during the first half of FY17 of a move from FPGA sales to royalties and large licensing deals continued in the second half of FY17 as demonstrated by the announcement of a new contract win with an Australian equipment manufacturer in
It was also anticipated that an existing customer would vary a large licensing deal to include an additional large sum of upfront cash and a royalty stream for integrating the Company's data processing code into a customer wireless ASIC. However, ultimately the customer has selected a different Ethernity proposal to use an FPGA SoC. This should result in significant additional revenues being received by the Company through the delivery of a complete FPGA SoC into the customer's large volume market that could not previously be served by the alternative solution. This further demonstrates the Company's vision that FPGA solutions penetrate a larger volume market than has previously been served entirely by ASIC. Ethernity is well placed to benefit from selling complete FPGA SoC solutions.
Further, the supply of products under two other ENET legacy contracts have been delayed from 2017 into 2018, whilst this timing delay is disappointing, the sales from these contracts are expected to be recovered in due course.
As a result of the above, the Company anticipates that revenues and profits for the year ended
For further information, please contact:
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Tel: +972 8 915 0392 |
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Arden Partners plc (NOMAD and Broker) |
Tel: +44 207 614 5900 |
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Tel: +44 7747 788 221 |
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Market Abuse Regulation
The information communicated in this Announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR"). For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by
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