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Ethernity Networks interim results confirm step-change in the business

Chief executive David Levi told investors that the company remains confident that it will meet its long-term objectives.

Ethernity Networks Ltd - Ethernity Networks interim results confirm step-change in the business
The networks firm is focussing on solutions for virtual networking and security appliances

Ethernity Networks Ltd’s (LON:ENET) interim results statement marked an expected step-change in the business as it transitioned into a solutions provider for virtual networking and security appliances.

The first-half results, described by the company as "in line with expectations", show revenues some 2.2 times higher than the previous year’s, at US$971,709.

It reported a US$843,000 gross profit, which is more than double the same period in 2018, meanwhile at US$485,451 the group’s earnings (EBITDA) loss narrowed by 56%. The operating loss was US$981,774, representing a 23% reduction.

Ethernity ended June with US$5.9mln of cash.

Chief executive David Levi told investors that the company remains confident that it will meet its long-term objectives, and is well positioned to become one of the key solutions providers in its marketplace.

“The licensing contracts signed with Tier1 OEM's represents part of the change we anticipated and is expected to develop into stable recurrent revenue from royalties,” Levi said.

“The goal of the company's development activities is to build stable recurrent revenues from technology licensing and supply of our ACENIC-100 and UEP products.”

He added: "We have continued with the successful advancement of our UEP hardware platform that will host our field proven flow processor for general edge access deployment with a complete programmable platform.

“Furthermore, development of the 'Router on a NIC' offering, ACE-NIC FPGA, Smart NIC, and the progress achieved in accepting virtualization especially in the 5G mobile market should, we believe, fuel major revenue streams for the company going forward."

Quick facts: Ethernity Networks Ltd

Price: 42 GBX

AIM:ENET
Market: AIM
Market Cap: £13.67 m
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