Ethernity Networks Ltd (AIM:ENET) expects its higher-end universal edge platform (UEP) product to generate “significant” revenue in full-year 2022/23.
The supplier of programmable networking solutions announced in December last year that due to the worldwide components shortage and price increases, it was planning to adapt its networking hardware device to produce a more competitively priced go-to-market product.
In collaboration with some of its customers, Ethernity decided to restore plans to produce a higher-end version of UEP, as originally contracted, which better fits the 5G transport market and will result in faster time to revenue.
Positioning the UEP product towards the higher end of the market enables the company to continue with the completion of its UEP platform and with its ACE-NIC product for integration into servers, Ethernity said.
It said it will be able to deploy a differentiated higher-end product during full-year 2022 while, at the same time, fulfil existing contracted customer orders.
Ethernity also said it is collaborating with two existing customers to secure components for thousands of units expected to be deployed during 2022/23, allowing it to accelerate progress over the next two years towards mass production.
The company said it anticipates “significant” growth in 2022/2023, adding that successful delivery of existing and pipeline contracts would deliver in excess of US$20mln over the next 24 months.
In addition, the company continues to benefit from royalty and licensing revenue streams.
"Our recent efforts to consolidate our progress, both in our R&D and in our sales, and to ensure that we are on a path toward financial growth have been extremely successful, and I am now confident that we are placed on a solid foundation for the next couple of years,” commented Ethernity CEO David Levi.
“This will allow us to seek additional customers for our established products and solutions, further growing our revenues and gross margins."