Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF), a company that provides data processing semiconductor technology for networking appliances, has given an update on its contract fulfilment with an unnamed Asian broadband network OEM customer.
The company said it has completed the integration of its XGS-PON Optical Line Termination (OLT) fibre access controller onto the customer's board and has achieved interoperability with three third-party Optical Networking Units (ONUs) servicing the end-user network.
In line with the US$3mln (£2.5mln) contract term, the company has commenced shipment of its ENET5200 Quad XGS-PON System-on-chip (SoC) controller device to the customer and expects to record the majority of revenues under this contract during 2023.
Additionally, Ethernity has received a second order for devices from the same customer under a $4.6mln contract for 5,000 units of its Gigabit PON OLT fibre controller SoC devices for use in FTTR deployments.
The company said it expects these devices to be ready for shipment to the customer in the third quarter of 2023, with revenues to be recorded during 2023 and 2024.
The company has also seen growing interest from multiple OEMs for its PON fibre controller devices and systems. As a result, it plans to target sales of licensing fees for its PON fibre controller SoC and sales of its PON fibre controller OLT system in various configurations.
In a statement, Ethernity chief executive David Levi said: "We're pleased to be progressing our work with this important customer, including working with them to identify potential new revenue streams. As a result, we are excited about the opportunities ahead for the company.”