1st Sep 2022 11:25
Ethernity Networks Ltd - Israel-based network data processing technology provider - Says contract with an "Israeli international wireless connectivity vendor" for the provision of its Universal Edge Platform module is cancelled. Says it has been told that the cancellation is due to customer claims of delays in product delivery, an allegation it "strongly rejects".
Ethernity says the contract was for an initial total of USD930,000, of which it has so far invoiced USD107,000 and had budget for a further USD240,000 to be invoiced and delivered in 2022. "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 April 8, and these figures are now expected to reduce commensurately as a result of the contract cancellation," it says.
Chief Executive Officer David Levi says: "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."
Current stock price: 9.30 pence, down 26%
12-month change: down 79%
By Xindi Wei; xindiwei@alliancenews.com
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