Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF) announced a follow-on contract with a Chinese broadband network customer worth US$4.6mln.
The supplier of semiconductor technology for networking appliances said it will supply system-on-chip devices to enable fiber-to-the-room (FTTR) deployments, an alternative to wi-fi.
Today’s contract follows a US$3mln order with the same cutomer in October 2021, bringing the total contract value with the customer to US$7.6mln. The customer proposed the follow-on deal following the success of the initial project.
Ethernity said this is the largest field programmable gate array (semiconductor devices designed in a way it can be reprogrammed) contract it has entered and expects revenue from the deal to be recorded in 2023 and 2024. It will provide a “significant contribution” to 2023 revenues above its existing order book.
FTTR uses passive optical fiber to reach areas of deployment and provides greater reliability and performance than wi-fi, while also being greener and more power efficient than traditional copper cabling, according to a statement.
“This is a totally untapped market for Ethernity that utilises our existing 5G infrastructure technology to serve a major connected residential market,” said chief executive David Levi.
“I believe this is the tip of the iceberg in this growing market for the Company and has the further potential to generate additional significant revenue flows."