Ethernity Networks said it has delivered 40% of a US$1.5mln order for its data processing system-on-chip device and has been paid for that amount.
In an update, the telecoms hardware said it would receive full payment by late August.
Ethernity added going forward it was pivoting to a licensing and revenue-sharing strategy for its technology, which should improve gross margins compared to existing product sales and allow it to focus on larger contracts.
Contract delays and extended sales cycles mean it is uncertain it will meet revenue forecasts for this year, it added in the statement.
David Levi, chief executive, said: "With the PON (passive optical network) licensing model that we are implementing, we anticipate that we will be able to generate positive cash flow from operations and build a profitable and growing business."