Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF) said it expects a contract with a top-tier military aerospace customer to be worth US$550,000, which it expects to fulfil before the end of the year.
The company, a supplier of data processing semiconductor technology for networking appliances, announced it has signed an extended license contract for US$475,000, which follows an advanced payment of US$80,000 from the customer last month.
Final payments are expected to be received this month and in December.
Ethernity has provided the client with its silicon-tuned software since 2019, supporting AMD's MPSOC field programmable gate array device for use on a specific platform.
With the extended license, the customer will be able to utilise the Ethernity ENET flow processor IP on other platforms, which will also bring the total license fees with the customer to US$1.19 million.
The board of the AIM-listed company said it believes that this extended license contract "could open the door for the company to penetrate into other platforms through collaboration with the customer leading to future support and design service revenue".
As well as this contract, Ethernity said it has other ongoing business from other customers, including two delayed contracts worth another US$0.5 million announced in August, that are expected to represent the main revenue contributors during the current quarter.
Chief executive David Levi said: "The customer appreciates our support and the quality of the Ethernity ENET flow processor code, and as a result decided to sign on an extended license agreement.
"I am grateful to the customer who agreed to support the company during the challenging period Ethernity is currently facing, and look forward to continue our long-term collaboration via possible future business opportunities."