Contract win with Tier 1 military aerospace customer
· Extended license contract signed valued at $475,000
· Contract expected to be fulfilled in Q4 2023
· The Company expects further revenue from customer in 2024 through support of the utilisation of the license on multiple platforms and systems, and by applying to different platform configurations and functionality
Ethernity Networks (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of data processing semiconductor technology for networking appliances, is pleased to announce that it has signed an extended license contract for $475,000 (the “Contract”) with a Tier 1 US based military aerospace customer (the “Customer”). This Contract is further to an advanced payment received in October 2023 of $80,000 from the Customer. Payments for the Contract are expected to be received during November and December 2023. As a result, the total anticipated revenue from the Customer during Q4 2023 is $555,000.
Since 2019, Ethernity has provided the Customer with its unique silicon-tuned software supporting 24GE and 4 x 10GE ports utilised on AMD’s MPSOC FPGA device, for use on a specific platform. The total license fees received under this historic license was $715,000. With this extended license, the Customer will be able to utilise the Ethernity ENET flow processor IP on other platforms. This Contract brings the total license fees with the Customer to $1.19 million. The Company is pleased to continue its relationship with this Customer and, whilst there can be no guarantees, the Board believes that this extended license Contract could open the door for the Company to penetrate into other platforms through collaboration with the Customer leading to future support and design service revenue.
The revenue associated with this Contract, together with ongoing business from other customers as well as work related to the two FPGA SoC contracts announced on 9 August 2023, are expected to represent the main revenue contributors for the Company during Q4 2023.
David Levi, CEO of Ethernity Networks, commented: “The support and excellent delivery provided to the Customer five years ago resulted with an outstanding product for the military aerospace market. The Customer appreciates our support and the quality of the Ethernity ENET flow processor code, and as a result decided to sign on an extended license agreement. I am grateful to the Customer who agreed to support the Company during the challenging period Ethernity is currently facing, and look forward to continue our long-term collaboration via possible future business opportunities.”
