Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF) has sketched out plans to combat component shortages as it posted interim results.
The AIM-quoted provider of networking processing semiconductor technology saw its margins tighten in the first half as it battles the worldwide shortages that have hit the industry.
The company said it elevated its data processing offering to shore up a drop in licensing and royalties.
In the results statement, Ethernity Networks chief executive officer David Levi said: "The positive mix of product, royalties and licensing revenues reflects the progress in our current strategy and we are pleased to be continuing the evolution of the company, with our strategy to focus on product and system revenue business.”
Levi did note that component shortages could defer 2022 revenues into the new year, but on the upside he added: “We are excited by the opportunities being presented by the components shortages to leverage our data processing SoC (system-on-chip) technology and IP, as well as our PON (passive optical network) semiconductor technology.”
Ethernity Networks results for the six months to June 30, 2022, saw a 26% year-on-year drop in revenues to US$705,000 and underlying earnings (EBITDA) losses of US$3.6mln, driven mainly by an uptick in R&D costs.