Ethernity confident despite delay in US aerospace contract approval

2nd Sep 2024 12:14

(Sharecast News) - Data processing and semiconductor technology provider Ethernity Networks updated the market on its $1.05m contract with a tier-one US-based aerospace system products provider on Monday.

The AIM-traded firm said the contract, initially announced on 28 June, would see Ethernity licence its silicon-tuned software to enable specific networking functions on the customer's platform.

It said the project was currently awaiting approval from the US government - a standard requirement for aerospace-related initiatives.

Although there had been an unexpected delay in the approval process, both Ethernity and the customer were reportedly confident that the approval will be granted soon.

In preparation, Ethernity said it had already delivered the initial project milestones, as the deliverables were integral to its UEP switch/router offering and required no special development.

Once the government approval was received, it would trigger an immediate payment of 40% of the contract's total value.

Additionally, Ethernity said its technical teams had been actively working with the customer's personnel, providing training and familiarisation with the technology to ensure a smooth and accelerated development process once the project received the necessary clearance.

At 1120 BST, shares in Ethernity Networks were down 5.81% at 0.49p.

Reporting by Josh White for Sharecast.com.