Ethernity Networks Lands $4.6M Follow-On Contract for Fiber-to-the-Room Devices

Rhea-AI Summary

Ethernity Networks has secured a $4.6 million follow-on contract with a Chinese broadband OEM, boosting the total contract value for their PON technology to $7.6 million. This contract involves supplying SoC devices for Gigabit Passive Optical Networking (GPON) Optical Line Termination, aimed at enabling Fiber-to-the-Room deployments. This marks the company’s largest single FPGA volume-based contract to date and highlights significant market potential, as indicated by the customer’s plans for increased volumes in the future.

Positive

• Total contract value with customer reaches $7.6 million.
• Secured a $4.6 million follow-on contract for SoC devices supporting GPON OLT.
• Expands market reach into the growing Fiber-to-the-Room (FTTR) sector.
• Largest single FPGA volume-based contract to date.

Negative

• None.

Brings total value of contracts with customer for Ethernity's PON technology to $7.6M

AIRPORT CITY, Israel, Sept. 20, 2022 /PRNewswire/ -- Ethernity Networks (AIM: ENET.L) (OTCQB: ENETF), a leading supplier of networking processing semiconductor technology ported on FPGA (field programmable gate array) for virtualized networking appliances, announced today that it has signed a new $4.6 million follow-on contract with its existing customer, a Chinese broadband network OEM.

Under the contract, Ethernity will supply system-on-chip (SoC) devices with support for Gigabit Passive Optical Networking (GPON) Optical Line Termination (OLT), adapted to enable Fiber-to-the-Room (FTTR) deployments. The Ethernity solution offers GPON OLT over an extremely low-cost FPGA to serve residential and small-office Customer Premises Equipment for FTTR deployments.

Fiber-to-the-Room is a disruptive trend that uses passive optical fiber to reach residential, retail, and enterprise deployments. Passive fiber-optic deployments provide greater reliability and performance than Wi-Fi and a greener and more power-efficient solution than traditional copper cabling. By bringing fiber into the individual rooms of an apartment or small office, end-users can benefit from higher throughput with an unmatched level of service to enable today's most data-hungry applications without experiencing lags.

This is the second major contract with this customer, following an original $3M GPON/XGS-PON OLT SoC order in October 2021. Given the success of that initial project, the customer proposed a follow-on project to address the larger FTTR market, targeting residential deployments and expanding Ethernity's reach into a new mass-volume market.  

This is the largest single FPGA volume-based contract that Ethernity has entered into to-date. With the device being a major enabler within a next-generation home gateway and considering the significant estimated volumes indicated by the customer beyond the committed volume per the contract, this may justify porting the design integrated on the FPGA to an Application Specific Integrated Circuit (ASIC) to allow long-term competitive pricing.

David Levi, CEO, Ethernity Networks said: "This deal confirms our prior expectations that Ethernity's contract wins would lead to follow-on business. We are extremely pleased with the advances we have made on a deployable PON product with this OEM customer, and we are excited to begin work on this extended offering for the new FTTR market. This is a totally untapped market for Ethernity that utilizes our existing 5G infrastructure technology to serve a major connected residential market. I believe this is the tip of the iceberg in this growing market for Ethernity with further potential to generate significant additional revenue flows."

About Ethernity Networks
Ethernity Networks (AIM: ENET.L) (OTCQB: ENETF) provides innovative, comprehensive networking and security solutions on programmable hardware for accelerating telco/cloud networks. Ethernity's FPGA 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 deployment of 5G, edge computing, and NFV.

Investor Relations contact:  Jonathan Paterson Email: jonathan.paterson@harbor-access.com Tel: +1-475-477-9401

Media and Analyst contact: Kevin Tanzillo
Email: media@ethernitynet.com Tel: +1-903-865-1078   

View original content:https://www.prnewswire.com/news-releases/ethernity-networks-lands-4-6m-follow-on-contract-for-fiber-to-the-room-devices-301628202.html

SOURCE Ethernity Networks

FAQ

What is the significance of Ethernity Networks' $4.6 million contract announced on September 20, 2022?

The $4.6 million contract enhances Ethernity's existing partnership, increasing total contract value to $7.6 million and expanding their offerings in the Fiber-to-the-Room market.

How does Ethernity Networks' new contract affect its stock ENETF?

The new contract may positively influence investor confidence and stock performance for ENETF by showcasing growth and demand for Ethernity's technology.

What technology is Ethernity Networks supplying under the new contract for GPON?

Ethernity is supplying system-on-chip devices designed for Gigabit Passive Optical Networking Optical Line Termination.

When did Ethernity Networks secure its initial contract with this customer?

Ethernity secured its initial $3 million contract in October 2021.

What market is Ethernity Networks targeting with the new contract?

Ethernity is targeting the Fiber-to-the-Room (FTTR) market aimed at residential and office applications.