Ethernity Networks Ltd’s (LON:ENET) chief executive David Levi has said the firm is continuing its transition toward becoming a solutions provider for virtual networking and security appliances following a contraction in earnings for the first half.
The AIM-listed company reported an underlying (EBITDA) loss for the half-year of US$1.1mln, down from a positive EBITDA of US$441,292 in the same period a year ago, while revenues fell to US$441,247 from US$988,995 previously.
READ: Ethernity Networks says investment in R&D and sales & marketing will fuel future growth
The firm also ended the period with a cash balance of US$11.9mln, down from US$18.2mln in the first half of 2017.
Ethernity said the results had reflected a 12-month delay in the adoption of a “new network virtualisation market” in which the firm operates, adding that the EBITDA loss was primarily due to its investment in Sales & Marketing and Research & Development activities.
The investment had operated in parallel to a material decline in business with one of Ethernity’s historic customers in 2017, as well as “marketplace delays” around the virtualized networking environment which had affected its full-year earnings for the previous year.
Levi also said that the company was in “advanced stages” of porting ENET networking software to a Tier 1 original equipment manufacturers’ (OEM) platform while also in an advanced stage of signing a contract with another Tier 1 OEM vendor.
In its outlook, the firm said it was confident in meeting its long-term objectives and would be well-positioned as one of the marketplace’s key providers.