Semiconductor technology group Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF) has reported interest from the OEM sector that could have a positive impact on its revenues.
In its business update, the company said it had engaged positively with several potential new customers, including two manufacturing (OEM) vendors.
After thoroughly evaluating Ethernity's Universal Edge Platform (UEP), they have expressed their intention to adopt and introduce the product to their respective customer bases.
Negotiations are currently underway, which, if successful, could significantly contribute to the company's top line.
Furthermore, two additional OEM vendors have shown interest in contracting Ethernity for the delivery of a UEP-based design.
Ethernity said new contract wins are expected to add between $2.2 million and $3 million to revenues for 2024.
More importantly, these potential partnerships could pave the way for substantially higher revenues in 2025 and beyond, contingent upon each customer's commitment to adopting the products.
Chief executive David Levi said: "Ethernity is seeing promising progress with current OEM vendor engagements, including several new ones. Such OEMs value Ethernity's Programmable UEP, based on our semiconductor technology for Ethernet Access and Passive Optical Network (PON) fibre access technology.
"Ethernity's Technology is offered to its OEM customers via various business models from IP licensing, conversion to eASIC or ASIC, through to delivery of a complete customised system."
The company specialises in semiconductor technology for networking, adapted for use on field-programmable gate arrays (FPGAs) to enhance virtualised networking appliances. This enables flexible and efficient network data processing.
It offers its products to OEM vendors through two primary revenue models: either via the sale of complete systems or through licensing of the company's IP.
The choice of the business model is determined by the customer's needs, whether seeking a full product solution or intending to integrate Ethernity's technology within its own product offerings.