Ethernity Networks Ltd (AIM:ENET) said it remains confident it will meet its growth plan objectives for 2022 and 2023.
The supplier of programmable networking solutions said it is well-positioned to become one of the key solutions providers in its marketplace.
It did warn, however, that potential delays in product roll-outs and the general industry-wide shortage of components required for its unequal error protection (UEP) and access control entry (ACE) network interface card products flagged in its August interim results have come to pass.
As a result, some revenues, amounting to about US$1.2mln, previously expected in the final two quarters of this year are now expected to arrive in the first half of 2022.
For the whole of 2021, the company expects revenues will be around US$2.8mln with a gross margin in the region of 74%.
Given the expected ongoing components shortages, the company has purchased and secured sufficient critical components for its 2022 system solutions delivery (UEP and ACE-NIC100 products), and is in the process of securing all components for the mass production of its UEP products targeting innovative solutions for the existing wireless connectivity market, to safeguard against delays in 2022 deliveries.
Ethernity anticipates generating significant revenue growth from its field-programmable gate array (FPGA)-based programmable system solutions, coupled with further growth in the FPGA Router-on-NIC.
Year-on-year revenue growth is anticipated from product orders and contracts already signed, in particular from long-term contracts for Fixed Wireless Access, FPGA-based Universal Edge Platform systems with Ethernity's patented wireless bonding, FPGA Router-on-NIC, and the recently announced US$3mln contract for FPGA-based 1G/10G PON OLT.
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The anticipated growth into 2022 and beyond from existing signed contracts, over and above the initial contract commitments, is expected to continue the momentum of increased engagements for Ethernity's solutions-based offerings, the company said.
"While the component and manufacturing delays remain out of our control to a significant extent, we have taken early action to secure components for our 2022 deliveries. The product contracts we have already signed, the product orders we have received, and the good progress we have experienced with acceptance of our offerings will fuel our revenue growth to position us not just as a technology company, but as a validated system product supplier with differentiated offerings and growing revenue streams. Thus, we expect to continually be considered for larger-scale deployments,” said David Levi, the chief executive officer of Ethernity.
Shares in Ethernity were down 6p at 43.5p.