Shares in Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF) soared 83% in early trading on Wednesday after the networking specialist unveiled a strategic shift and signalled early interest from major telecoms vendors.
While full-year revenue fell to $1.38 million in 2024 from $3.78 million, and losses narrowed modestly, investors focused on signs of traction for the company’s UEP-2025 platform.
The technology, designed for the wireless backhaul market, has already secured a $1.05 million contract with a Tier-1 US aerospace firm, followed by a $290,000 follow-on order this year.
The standout detail for the market is Ethernity’s push into application-specific integrated circuits (ASICs).
The company is developing an ASSP (application-specific standard product) for the telecom access market, based on UEP-2025, and is in discussions with four major wireless vendors that collectively account for around half the global backhaul market.
If successful, this could represent a market of up to 400,000 units annually.
Although the company still needs external funding to move forward, directors see a clear route to a multi-million-dollar semiconductor opportunity, a shift that’s clearly energised the market.
The stock rose 0.015p to 0.032p.