Ethernity Networks Ltd Contract cancellation (8224X)
01 Septiembre 2022 - 1:00AM
UK Regulatory
TIDMENET
RNS Number : 8224X
Ethernity Networks Ltd
01 September 2022
01 September 2022
ETHERNITY NETWORKS LIMITED
("Ethernity" or the "Company")
Contract cancellation
Ethernity Networks (AIM: ENET.L), a leading supplier of data
processing offload solutions on programmable FPGA (field
programmable gate array) for accelerating telco/cloud networks,
announces that it received notice on 31 August 2022 that its
contract for the provision of the Company's UEP module (Universal
Edge Platform), details of which were first announced on 30 July
2021, (the "Contract") has been cancelled.
The Contract was signed with an Israeli international wireless
connectivity vendor and the Company has been informed that it has
been cancelled due to customer claims of delays in the product
delivery. Ethernity strongly rejects the allegations by the
customer, which has itself caused continual delays due to
subsequent pricing issues, amendments to technical requirements and
designs, faulty hardware definitions, as well as faults in the
customer product on which the Company needed to integrate its
solution. These factors drove the delays experienced by the
Ethernity development teams.
The Contract was for an initial total of $930,000 with various
scheduled deliveries and billings. To date, the Company has
invoiced the customer for a total of $107,000 which included
deliveries as required for prototypes in accordance with the
Contract terms. The Company had budgeted for a further c.$240,000
to be delivered and invoiced in 2022, with the balance being
delivered and invoiced in 2023. These amounts had been factored
into the Company's contracted revenue figures for 2022 and 2023
provided in the 2021 full year results, announced on 8 April 2022,
and these figures are now expected to reduce commensurately as a
result of the Contract cancellation.
On 13 June 2022, the Company announced it has been continuing
with development of a higher end UEP product for the market and
that it had delivered the UEP module adapted for use in conjunction
with a leading OEM wireless backhaul transmission product to the
customer, in line with the Contract, following the successful
conclusion of the development and prototype testing stages. It
further announced that the completed UEP module is a similar design
to the Company's forthcoming UEP2025. The Ethernity development
team that has focussed on the customer development will continue to
focus on the UEP2025 as, per customer interactions and discussions,
the management remain of the view that the UEP2025 has the
potential to generate additional revenues for the Company.
The Company is in discussions with potential customers for
supply of the UEP2025, which is equipped with the Company's
patented wireless link bonding and is targeted to serve as an ideal
disaggregated, all-in-one, wireless backhaul Indoor Unit,
facilitating 5G infrastructure deployment by offering higher
bandwidth transport, faster time to market, and lower cost to
deploy.
Ethernity CEO, David Levi, said : "We are extremely disappointed
with the customer's stance and believe that their decision has been
driven by other internal factors at the customer, which is
resulting in them not being able to deliver to their anticipated
plans. We consider that these factors are unrelated to the
Ethernity developments. We are however highly encouraged by the
progress and developments of our UEP2025 and will continue to focus
our resources on this development."
About Ethernity Networks
Ethernity Networks (AIM: ENET.L) provides innovative,
comprehensive networking and security solutions on programmable
hardware for accelerating telco/cloud networks. Ethernity's
semiconductor logic offers complete Carrier Ethernet Switch Router
data plane processing and control software with a rich set of
networking features, robust security, and a wide range of virtual
function accelerations to optimize telecommunications networks.
Ethernity's complete solutions quickly adapt to customers' changing
needs, improving time-to-market, and facilitating the deployment of
5G, edge computing, and NFV.
For more information on Ethernity's products and solutions,
please see The Company's website at www.ethernitynet.com .
For further information, please contact:
Ethernity Networks Ltd Tel: +972 8 915 0392
David Levi, Chief Executive Officer
Mark Reichenberg, Chief Financial Officer
Allenby Capital Limited (Nominated Adviser Tel: +44 (0)20 3328
and Joint Broker) 5656
James Reeve / Piers Shimwell (Corporate
Finance)
Amrit Nahal (Sales and Corporate Broking)
Peterhouse Capital Limited (Joint Broker) Tel: +44 (0)20 7562
0930
Lucy Williams / Duncan Vasey / Eran Zucker
MARKET ABUSE REGULATION
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse (amendment) (EU Exit) Regulations 2019/310
("MAR"). With the publication of this announcement via a Regulatory
Information Service, this inside information is now considered to
be in the public domain.
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END
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