- Ethernity Networks said Wednesday it had signed a contract, worth nearly $0.5m in revenue, to supply its proprietary firmware to a North American tier 1 telecommunications manufacturer.

The contract represented nearly $0.5m in short-term revenue for Ethernity and, is further expected to generate an estimated $2m in future royalty streams over the next 30 to 36 months, with additional royalty streams extending thereafter, the company said.

The company said it had also engaged in discussions to apply its firmware and software to the customer's broadband switch and router platforms, which, if successfully concluded, would add significantly to the ongoing royalty stream.

'We are very pleased to have successfully concluded this agreement with a tier 1 OEM, and we believe this will be the first of many similar agreements with customers in the future,'said Ethernity's CEO David Levi.

'This supply contract confirms that our extensive networking functionality offers tremendous value to the market, and is an example of how we can build strong partnerships with industry leaders.'

At 9:56am: [LON:ENET] Ethernity Networks Ltd share price was +4p at 24p

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