7th Sep 2018 10:05
LONDON (Alliance News) - Ethernity Networks Ltd on Friday sank to a half-year loss as revenue halved and costs tripled.
For the six months ended June, the data processing technology firm sank to a USD1.2 million pretax loss from a USD179,834 profit the year prior. This was after revenue halved to USD441,247 and USD988,995 the year before.
Profit performance was also hurt by a rise in costs. Overal costs - including research, administrative and marketing - jumped to USD1.6 million from USD486,500 the year before.
"The first half results are in-line with our expectations with the focus being on the company moving from an intellectual property/technology provider to a solutions provider for virtual networking and security appliances," Ethernity Chief Executive Officer David Levi said. "They reflect also market place delays around the virtualized networking environment that we have elaborated on earlier in the year, along with the difficulties wherein a historic customer experienced contractual difficulties with their customer resulting in a material decline in business with them during 2017."
"In parallel the company has also invested in advancing the current technology to support higher throughput and additional functionality, targeted at Tier 1 original equipment manufacturer's products, that can generate clear growth and forecasts not just for smart network interface cardbut also for the IP/ technology business", Levi added.
"Our smart NIC business and new ACENIC100 that supports 100GE, 2x40G, and 8x10G interfaces is gaining significant traction, we have already signed a contract for the new ACENIC100 in June and are in the process with a few customers that now plan to move into production and deployment with our new ACENIC100," Levi explained.
"We remain confident that Ethernity will meet its long term objectives and will be positioned as one of the key solutions providers in its marketplace", Levi added.
Shares in Ethernity were 5.4% lower at 26.95 pence on Friday.
Related Shares:
Ethernity Net