24th Oct 2018 09:39
LONDON (Alliance News) - Ethernity Networks Ltd said Wednesday it signed a contract with a North American tier 1 telecommunications original equipment manufacturer.
Shares were trading 22% higher at 24.30 pence each.
The data processing technology firm said the contract is for the supply of its ENET Switch and Traffic Manager firmware. It didn't name the customer.
The deal represents USD500,000 in short-term revenue, Ethernity said. It has already completed the integration of its firmware on the partner's existing optical networking platform, said.
Looking ahead, Ethernity expects the deal to generate USD2 million in future royalty streams over the next three year, with additional royalty streams extending thereafter.
Chief Executive Officer David Levi said: "We are very pleased to have successfully concluded this agreement with a tier 1 OEM, and we believe this will be the first of many similar agreements with customers in the future.
"This supply contract confirms that our extensive networking functionality offers tremendous value to the market, and is an example of how we can build strong partnerships with industry leaders."
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