What Ethernity does
The company's main focus is on the use of field-programmable gate array (FPGA) technology, essentially a programmable system that helps to reduce pressure on computer processors and networks.
This type of technology is useful for computer systems that deal with large amounts of data going through them, such as video streaming networks and online gaming.
Ethernity says that by offloading computer functions such as networking and security to the FPGA, the actual CPU will be freed up to perform other tasks.
This usually helps improve computer performance as well as cutting power consumption.
The FPGA market is a growing segment in the exploding computing sector, with an estimated value of around US$9.8bn by 2023.
How it's doing
The interim results marked an expected step-change in the business as it transitioned into a solutions provider for virtual networking and security appliances.
The first-half results, described by the company as "in line with expectations", show revenues some 2.2 times higher than the previous year at US$972,000.
It reported a US$843,000 gross profit or more than double the same period in 2018, meanwhile at US$486,000 the group’s earnings (EBITDA) loss narrowed by 56%.
The operating loss was US$982,000, representing a 23% reduction.
Ethernity ended June with US$5.9mln of cash.
Chinese firm FiberHome is one the world’s largest suppliers of equipment for fibre optic networks.
FiberHome has chosen Ethernity’s ACE-NIC100 FPGA SmartNIC to be included within its FitBNG, Broadband Network Gateway (BNG).
The product will be promoted to FiberHome’s core Chinese telecom operator clients, including China Unicom, China Telecom, and others that serve tens of millions of households.
What the boss says: David Levi, chief executive
“The licensing contracts signed with Tier1 OEM's represents part of the change we anticipated and is expected to develop into stable recurrent revenue from royalties.
“The goal of the company's development activities is to build stable recurrent revenues from technology licensing and supply of our ACENIC-100 and UEP products.”
- Just signed deal ith huge Chinese optical network group, Fiberhome
- Company says it is in closing stages on another deal
- This is with US Tier one OEM provider is for its programmable FPGA
- As it is programmable, module can be used for a variety of applications
- This market is still evolving and will develop fully from 2021 onwards
Levi believes the programmable capability of its product gives it huge advantage.
No one else has this capability, he says, even Intel, with Ethernity chosen ahead of the US chip giant in current discussions
This is going to be a huge market, believes Levi.
“With our product, the [Tier-1] companies do not need to develop their own platforms.