6th Sep 2019 11:43
(Alliance News) - Ethernity Networks Ltd on Friday said it more than doubled its first half revenue, driven by the contribution of two contracts won towards the end of 2018.
In the six months to June 30, Ethernity delivered a revenue of USD971,709, up from USD441,247 in the first half of 2018. The network and security firm also narrowed its interim loss to USD990,304 from USD1.2 million.
Segmentally, the company's revenue in Israel grew by 29% year-on-year to USD277,188 from USD215,114 and in Asia by 3.0% to USD105,840 from USD102,754.
The core US business saw a sharp interim revenue growth to USD588,680 from USD46,239. Europe was the only region to generate no revenue, sinking from USD77,140 the year before.
In October, the company signed a supply contract with an unnamed tier 1 North American telecommunications equipment manufacturer, which at the time Ethernity said would seal USD500,000 in short-term revenue and USD2 million in future royalty streams over the next three years.
In November, it also secured a supply deal with a tier 1 North American aviation and defence equipment manufacturer, to the tune of USD400,000 in short-term revenue.
During the interim period, Ethernity said it "successfully completed delivery" of its ACENIC-100 platform to a major Korean equipment maker. The product is used to improve the performance of ethernet internet networks.
Chief Executive David Levi said: "The first half results and growth are in-line with our expectations with the focus being on the company moving from a technology provider to a solutions provider for virtual networking and security appliances.
"The licensing contracts signed with Tier 1 original equipment manufacturers represents part of the change we anticipated and is expected to develop into stable recurrent revenue from royalties."
Shares in Ethernity were 4.5% higher at 39.20 pence each in London on Friday morning.
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