Ethernity Networks Share Discussion Threads

[astralvision] 11/4/2021 11:57

Just wait till the 5G orders start rolling in. Ok, they will be modest to start with, but we must be getting mighty close now.Here's an idea of the size of the market, from last years AR. You can now add the DU market onto that , with the news in Feb that ENET is dealing with three Tier 1 server vendors. That market could be massive. In fact t the market for ENET just seems to grow and grow.'Our estimated total addressable market for the next five years for NIC cards required for acceleration of 5G UPF is $1.2Bn, which the Ethernity ACE-NIC product family can address. This is based on the assumptions that a 100Gbps performance will serve 10,000 5G users, and with the market analysis (depicted in the Annual Report) that forecasts a total of 3 billion users by 2025. Within this we anticipate a market need for 300,000 FACs for 5G UPF over the next 5 years, commencing in 2021 with growth ramping up exponentially from 2022.'

[purchaseatthetop] 11/4/2021 11:02

outlaw...I fully expect an RNS sometime soon with a production agreement/JV for the increased capacity. 5,000 units covers max of 2.5m households. In 2022 we should be looking at maybe 50,000 units covering 25m households (or more).

Tarana have a presence in Pune, India. I would think there would be a good place!

[outlawinvestor] 11/4/2021 10:54

Historic production (there are over 700,000 ENET Flow Processor installations in the wild) is a mixture of OEM licensed chips (i.e. packed on to OEM chips), some ported to ASICs, some packed directly by Ethernity on FPGA (SoC), some delivered on Ethernity SmartNICs, and on 3rd party NICs. And includes design wins which are extremely high margin.

This order is for SoCs so my guess is that the margins will be higher than NIC margins but lower than licensing - would have thought in the 70% to 80% range.

Does anyone know exactly how Ethernity go about "mass production"? I believe the ENET platform itself is used for replicating the flow processor logic and structure en-masse but have no idea what kind of capacity is available in-house. That said, it seems likely they have enough capacity to produce 5000 over 12 months. If they are sourcing extra capacity as suggested on LSE they must anticipate larger orders.

[purchaseatthetop] 11/4/2021 10:16

gregthegrinch (and others). There were questions over the cost of producing the goods for Tarana. Astral vision suggested that the gross margin would be very high.

The gross margin for H1 2020 was 88%
The gross making for 2019 was 86%

I do not see any reasons why the gross margin on the Tarana orders should be much lower than their historic GM's.

If this is correct, and please let me know if it is not, then the cost of producing the goods for Tarana will not require more working capital funding.

[purchaseatthetop] 11/4/2021 08:48

Tarana Wireless are an interesting read. Their entire business is built on ENET functionality it seems to me. They are a really fast growing unicorn in San Francisco and just recently got another $30m funding.

Look at their jobs pages:



I would not be surprised if their owners were part of the 5G Innovation Leaders Fund LLC

there is a lot of business coming from Tarana.

[astralvision] 10/4/2021 11:26

pattYes it was me, I think this is an amazing buy at £16m, crackers really.I don't think it's going to stay in the low 30's for too long, imo.

[purchaseatthetop] 10/4/2021 10:49

astralvision.....the fun part of investing is finding the data that gives you the edge ahead of the market. ITX was classic in finding the job advert for night shifts in Nov 20. That showed us that ITX were growing really really fast and that H2 2020 would be ahead of forecasts given that we knew they could get to $7.5m per annum using one shift. We were buying heavily at 4.5p and now they are around 7p.

I now see ENET in the same category as ITX in that their disruptive technology has world-wide applications.

BTW...I think it was you who originally nudged me towards ENET. Thanks!

[astralvision] 10/4/2021 10:43

Think the numbers at ENET have grown over the last year , indicative of a company gearing up for serious growth.Whilst we wait for news on a whole range of possible events, this weeks news re Tarana was an absolute corker.Tarana is heavily backed, they are going to win loads of business and ENET will be a direct beneficiary of that. $400k is just the start, once this is in mass roll out, substantive revenues will flow to ENET.As Tirana says:'We're putting the finishing touches on G1 now and have started commercial trials. We are deeply engaged with tier 1 service providers on multiple continents, but that's all exciting news to come. Stay tuned . . .'

[purchaseatthetop] 10/4/2021 10:08

I am buying more ENET on Monday simply from looking at the number of jobs on the Eternity website:



These hires are the sign of a company growing faster than we can possibly imagine.

[collywobbler] 09/4/2021 21:29

Ah another advocate of the Enet baked bean analogy posted on lse! Of course Blazing saddles and Enet have another thing in common , both created by very clever Jewish People at the top of their profession !! I’ll raise a pan of beans to that.

[greg the grinch] 09/4/2021 21:02

My ENET shares are stickier than Sticky the stick insect when he got stuck on a sticky bun - I aim to have a few drinks in Cashville and then head on out to Tenbaggersville and then onto Jackpotsville where the real fun will start.

IMHO the market is waiting for funding/breakeven clarity - until we get that we are essentially taking a rest and farting around a campfire ala Blazing Saddles.

Hopefully we saddle up and move on out from the 30's in the next week/month.


GLA

:o)

[dplewis1] 09/4/2021 19:10

Lol, riding the share price to cashville. That sounds bloody great fun

[greg the grinch] 09/4/2021 16:38

I do not want a placing, but I am not too worried about that outcome because I think it will not be too dilutive because they wont need much £££ - maybe the market has missed that or does not agree?

Hopefully if it does happen the share holders will be involved - but realitically, I reckon they will not have a placing and just tap up 5g for more wad.

So hopefully one more bit of positive news and the balance finally swings towards the market assuming breakeven/profit.... then its warrants and then multibag time, with the sticky holders riding the share price to cashville.

GLA

[greg the grinch] 09/4/2021 16:10

:o) yes but selling knocked it back from a recent 40p.

The good thing is at some point we will [edit: I assume :o) ] hit visible/real breakeven/profit. Sold shares are going into sticky hands so when the 5g well runs dry we will see a sustained rise.

I reckon there were/are other recent sellers... CGT and weak sellers etc.

I'm sittin and waitin... on a risk reward basis I am not selling ENET.

[astralvision] 09/4/2021 15:23

GtGHear what you are saying although 5G seem quite reserved in their selling.It didn't stop the shares from rising from 18p or so to 36, give or take, last Autumn/early winter.Strong newsflow and think sane will happen again, imo.This time to over 50p

[greg the grinch] 09/4/2021 15:03

I think long term the Tarana deal is good news - it is just a case of possible funding taking the price down before breakeven.

I'm not selling any ENET - I'm happy to sit tight. :o)

[greg the grinch] 09/4/2021 14:54

The 5g cash is a double edged sword - they keep selling into the rise which will hold back the warrants getting hit.

I'll take the 5g cash before a placing - but I would prefer the warrants getting hit at 30p.

[astralvision] 09/4/2021 14:50

Yes, think the estimates on LSE ranged from $350 to $4k.I've done my sums at $500, which I think could be very conservative, and it looks good.Margins? I don't know, but this is going to be a high margin product, im absolutely sure of that.

[astralvision] 09/4/2021 14:48

GtGDon't forget we had £400k in from 5G about a month ago with another £400k due in about 3 months.But I agree, be good to bring those warrants in , would fetch in a handy £600k+.Stick the above with the recent $400k order from Tarana, with more to come from that source and I think it's reasonable to expect further orders re 5G over next few months then the funding situation looks under control, imo.

[greg the grinch] 09/4/2021 14:29

LSE lowest price was $350? :o) Also, what is our profit per unit?

Because we had no definitive concrete numbers, we can only guess if we will need another placing before ENET becomes cash positive.

Ideally we get some significant news to push the price up so the warrants are in play before they expire. We need that or a transparent RNS that makes it clear we dont need more funding.

I'm not selling any, but I can see why there is still a seller out there.

[astralvision] 09/4/2021 12:29

Another great link OI, good stuff.We don't know the pricing point per unit of ENET's solution.On LSE consensus seems to be somewhere between $500 and $3000 a pop.Tarana is aiming at mass adoption, as you would think from a co valued at c $1bn (private co), and funded to the tune of $200m by industry heavyweights. Roughly you need one ENET unit for every 500 homes. At say $500 a unit that $1 per home, not expensive.Target market?25m homes, 50m, 100m? I don't know but it's going to be a large number and should mean very good revenues for ENET over next few years.25m @$500 unit would be $25mDo the maths, it looks good! Massively derisk ENET, imo. And 5G contracts to come!

[outlawinvestor] 09/4/2021 12:16

This Tarana demo video, from 2014, is quite interesting and rather amusing for a tech demo!

Considering that Tarana's product is a last-mile fibre solution it seems to me actually very relevant even in well connected cities, urban and suburban locations. Most UK operators for example only offer fibre to the cabinet, relying on copper to the home. This results in degradation for many home internet users with only a few users enjoying advertised speeds. One can see how Tarana's G1 would appeal to UK operators as it allows them deliver the equivalent of fibre to the home without laying new cables. It also allows them to fight back the emerging threat from 4G+ and 5G home broadband.

[purchaseatthetop] 09/4/2021 06:29

The Tarana deal did it for me. I was amazed that the share price really did not budge. To me it shows that they are getting ready for lift off. When the many field trials/assessments complete we should triple overnight (as astral vision points out). OK...plenty of risk (as always) but the Tarana deal really reduces that risk as it shows the leadership delivers.

We can now sit and wait for an RNS.

BTW....I bought into ARS yesterday. Copper in Indonesia. If you are looking for a copper prospect then check it out. I have vanadium (BMN), lithium (BCN) and now copper (ARS).

[astralvision] 08/4/2021 14:01

Steady number of buys going through. Nice to see a bit of volume, for ENET.Word is slowly getting out on these I feel.Further de risked with the Tarana news yet you can buy in for a m.cap of peanuts, £16m.This could be £50m in the blink of an eye, imo, and still have plenty of head room.

[astralvision] 08/4/2021 12:51

Could be.Worth checking out Tarana, well, I know you have from your excellent link OI.This is a good deal for ENET, with all the irons in the fire plenty more to come!GLA