Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF) reported an uptick in revenues with “positive” progress made at the start of the year despite the challenging environment.
Sales in the year to 31 December 2022 increased by 11.5% to US$2.94mln, the supplier of data processing semiconductors said in a results statement.
The group said the first six months of the current year have presented “unexpected challenges”.
Delays in expected orders from existing customers weighed on the group, resulting in a cash raise in May, as well as the implementation of cost-cutting measures.
Ethernity said progress has been made on customer engagements despite the challenging environment, demonstrated by its recent US$1.5mln order.
"While it is a challenging period due to the world financial situation, I am encouraged by the fact that there is demand for our PON offerings that have captured interest from larger corporations, and I am hopeful that, with the cost reductions implemented and the modified business plan, engagement in multiple design wins for our PON technology will fulfil our further anticipated growth,” CEO David Levi said.
The group did however report a 27.6% increase in underlying earnings (EBITDA) loss to US$6.4mln.