Ethernity Networks soars on Chinese deal

David Levi Photo: Company website

Communications equipment manufacturer FiberHome will use Ethernity's programmable hardware in its product.

Israeli networking and security solutions company Ethernity Networks (AIM: ENET.L), has seen its share price soar over the past two days after months of stagnation. The share price skyrocketed 74.6% yesterday and 25% today, after Ethernity Networks reported signing a contract with Chinese communications equipment manufacturer FiberHome.

The company, which is traded on London's Alternative Investment Market (AIM) has developed a solution, which enables programmable hardware to facilitate faster performance on communications networks. Based in Lod, Ethernity held its IPO two years ago.

The Chinese company will use SmartNIC, Ethernity's field-programmable gate array (FPGA) component for networks. According to Ethernity's announcement, use of its component will reduce the processor's energy consumption and costs, and will support tens of thousands of subscribers.

"We have been working closely with Ethernity for months to develop a solution that includes the performance and features that best fit our needs," said FiberHome NFV product lines director Wang Ye, who said that Ethernity's solution was ideal for his company. The final product, which will include Ethernity's component, will be marketed by FiberHome to is customers - Chinese communications providers, among whom are China Telecom, and Unicom.

"We are thrilled that FiberHome chose Ethernity's SmartNIC to accelerate their new FitBNG," said Ethernity CEO David Levi. "With FiberHome's powerful software and Ethernity's FPGA-based hardware, the product will provide high performance and reduced cost through hardware acceleration, making it especially attractive to Chinese service providers."

The steep rises boosted Ethernity's share price to £0.60 and its market cap to £15.5 million (NIS 70 million). The share price has more than tripled since hitting bottom in November 2018, although it is still far below its £1.91 peak shortly following its IPO, held at £1.40 per share.

Ethernity was founded in 2003 by Levi and VP R&D Shavit Baruch. The company's revenue totaled $1.1 million in 2018, down from $1.5 million in 2017, and it posted a $2.5 million loss last year, compared with a $159,000 profit in 2017. When it published its reports a week ago, the company said that its current focus was on developing the providing SmartNIC solutions for joint development projects with large companies, which were projected to power its growth from 2020 onwards.

Published by Globes, Israel business news - en.globes.co.il - on June 18, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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David Levi Photo: Company website
David Levi Photo: Company website
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