StockMarketWire.com - Data processing supplier Ethernity said it expected cash flow to turn positive by the end of the first half of 2021 as the adoption of 5G would boost demand for its network products.

On the basis of 5G deployment and the resultant increased use of NFV technologies in the telco cloud and radio access network (RAN), the company said it anticipated that it would turn cash flow positive by the end of the first half of 2021.

For the year ended 31 December 2019, the company had traded in line with management expectations, and expected to report full-year revenue approximately 20% ahead of the prior year, with operating costs in second half falling by approximately 5% compared to the first half.

The company also said it expected to receive orders for new design projects from existing customers during the second quarter of 2020.

The new 5G virtualized networks that use NFV technologies had 'created a need for field programmable gate array SmartNICs to accelerate 5G packet processing at the network edge,' the company said. 'Currently, it is anticipated that NFV 5G roll-out for field testing by operators will occur during 2020 followed by mass deployment during 2021,' it added.




At 9:57am: [LON:ENET] Ethernity Networks Ltd share price was +2p at 47.5p



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