Shares in Ethernity Networks Ltd (AIM: ENET) jumped over 200% in early Wednesday trading after the semiconductor company announced a strategic pivot into ASIC development, attracting early interest from major telecoms players.
Despite a drop in full-year revenue to $1.38 million in 2024 from $3.78 million and a slight narrowing of losses, investors were encouraged by growing momentum behind the company’s UEP-2025 platform.
The platform, tailored for the wireless backhaul market, has already landed a $1.05 million contract with a Tier-1 U.S. aerospace company, followed by a $290,000 follow-up order this year.
2024 trading update
The Company announces the following unaudited headline results for 2024, subject to the completion of the full year audit:
· revenue of approximately US$1.38 million (2023: US$3.78 million);
· gross profit of approximately US$1.37 million (2023: US$2.34 million);
· an EBITDA loss of approximately US$2.79 million (2023: EBITDA loss of US$3.86 million); and
· US$2.45 million spent on R&D (2023 R&D expenditure: US$4.2 million).
Current trading
· Following the successful delivery of the $1.05 million contract with the Tier-1 U.S. aerospace customer, Ethernity received an additional order from the customer in March 2025 valued at $290,000.
· In the first four months of 2025, total cash collections are expected to be approximately $700,000.
· One of Ethernity’s royalty-based customers has successfully completed the initial deployment of several thousand units as stipulated in their agreement. As a result, the Company anticipates an overall increase in royalty payments during 2025 compared to 2024.
· As previously announced, the Company will be required to raise additional funds in order to settle its payment obligations under the creditor settlement plan and to progress its potential ASIC business, as detailed further below, and is currently exploring a number of options to raise such funds.
The key highlight for investors is Ethernity’s strategic move into application-specific integrated circuits (ASICs).
The company is currently developing an application-specific standard product (ASSP) targeting the telecom access market, built on its UEP-2025 platform. It is already in talks with four major wireless vendors, who together represent roughly half of the global backhaul market.
If these discussions bear fruit, the potential addressable market could reach up to 400,000 units per year.
While external funding is still required to progress, the board believes there is a clear path to a multi-million-dollar semiconductor opportunity—a pivot that has clearly sparked renewed market enthusiasm.
