Ethernity revenues rise, earnings narrow in 2021

Networking technology company Ethernity Networks reported a 42.2% improvement in revenues in its full-year results on Friday, to $2.64m (£2.03m).

The AIM-traded firm said its gross margins expanded by 22.9% for the year ended 31 December to $1.94m, while its gross margin percentage narrowed to 73.8% from 85.4% year-on-year.

Its operating costs before amortisation of intangible assets, depreciation charges, provisions and other non-operational charges increased 32.1% to $6.9m.

Ethernity said its EBITDA loss widened by 35.7% to a loss of $5.05m.

The company raised cash funds of $11.2m before costs during the year, up from $3.3m in 2020, through a placing, share subscription and warrants exercises.

Looking ahead, the company said it was expecting “significant” revenue growth from its field programmable gate array (FPGA) based programmable system solutions and FPGA system-on-chip (SoC), coupled with further growth in the FPGA router-on-NIC.

The anticipated growth into 2022 and beyond from existing signed contracts, over and above the initial contract commitments, was expected to continue the firm’s momentum of increased engagements for Ethernity’s solutions-based offerings.

In terms of contracted revenues for 2022, the board said they already stood at $4.3m from existing customers.

Further growth was expected from the winning of new contracts leading to additional licensing fees, and further delivery of ACE-NICs, UEP devices and the UEP module.

“I am encouraged by the fact that with the product contracts we have already signed, the product orders we have received, and the good progress we have experienced with acceptance of our offerings,” said chief executive David Levi.

“This will continue to position us not just as a technology company, but as a validated system product supplier with differentiated offerings allowing for continual increasing revenue streams.”

At 1217 BST, shares in Ethernity Networks were up 0.62% at 24.4p.