Ethernity Networks Ltd (AIM:ENET) is expecting significant revenue growth this year, both from existing contracts and anticipated further contract wins.
The supplier of networking processing technology reported strong growth in revenues in its results for 2021, with the top line growing by 42.2% to US$2.64mln from US$1.85mln the year before.
The company said that this year it expects another jump in revenues, driven by its field-programmable gate array (FPGA)-based programmable system solutions and FPGA system on a chip (SoC) offerings, coupled with further growth in the FPGA Router-on-NIC (network interface card).
The company already has contracted revenues of US$4.3mln from existing contracts set to feed through this year. Additional growth is expected from the award of new contracts leading to additional licensing fees, and further delivery of ACE-NICs (access control entry network interface cards), UEP (universal edge platform) devices and the UEP Module.
The company said that the anticipated growth into 2022 and beyond from existing signed contracts is expected to continue the momentum of increased engagements for Ethernity's solutions-based offerings.
Ethernity already has “significant revenue visibility” for 2023, with US$5mln or orders in the bag and is confident of winning additional orders, both from existing and new customers.
In 2021, the company saw underlying losses (EBITDA) widen to US$3.72mln from US$5.05mln, largely as a result of increases in research and development (R&D) costs of US$1.52mln that arose mainly as a result of staff returning to 100% capacity during 2021 as lockdowns ended and increases in general and administrative costs of US$202,000.
EBITDA losses should start to reduce reaching 2023 as future revenues increase, the company said, although further increases in R&D are expected as well as increased marketing costs.
The reported loss before tax for 2021 was US$9.17mln, compared to a loss in 2020 of US$6.25mln.
Cash and cash equivalents at the end of 2021 stood at US$7.06mln, up from US$2.18mln a year earlier.
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“I am encouraged by the fact that with 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, this will continue to position us not just as a technology company, but as a validated system product supplier with differentiated offerings allowing for continual increasing revenue streams,” said David Levi, the chief executive officer of Ethernity.