Shares in Ethernity Networks Ltd (LON:ENET) surged in mid-morning trading Wednesday after it secured a contract to provide its ENET Switch/Router firmware and software to a North American Military and Defence original equipment manufacturer (OEM).
The firm, which specialises in data processing tech, said the contract represented US$400,000 in short-term revenues with additional future royalty streams and would involve the integration of its firmware into the customer’s FPGA-based avionics platform.
READ: Ethernity Networks flies as it lands chunky contract with North American OEM
The contract win follows closely behind a deal with a Tier 1 telecoms OEM in October worth nearly US$500,000, which involved integrating Ethernity’s firmware into its existing fibre-to-the-home optical networking platform for advanced broadband services with 4K video.
Ethernity also noted that the two recent wins represented a “significant change” in the market as vendors constructed FPGA-based platforms as their preferred vehicle for deployments with multiple applications, a trend the company said should result in greater business opportunities for its technology.
David Levi, chief executive of Ethernity, said that the contract further confirmed that the company’s solutions “bring tremendous value to different sectors of the market at the tier 1 OEM level".
He added that the business model would serve as a foundation for “anticipated product revenue growth from our new ACE-NIC100 FPGA-based SmartNIC”.
Shares were up 10.5% at 21p.
--Adds share price--