Ethernity Networks Share Discussion Threads

[dplewis1] 16/5/2022 13:32

Why are you always trying to justify yourself to make it out you're always right. Timing is crucial because companies can go under if they mistime a market, so your point is a bit irrelevant. You also completely misjudged the Tarana revenues plus a number of other things.. but don't let the truth get in the way at this stage eh

[504] 16/5/2022 13:09

I believe that the only assumptions miles off were the timing. Everything I expected in 2020 I expect now except the opportunity is much larger. It could/will be that the timing is off but the market Infront of Ethernity is now huge.
Reality is that if it starts 6 months later than anticipated then the financial projections for 22/23 are nonsense. OEMs can't sell into a market not ready to buy. The timing of UEP2025 is perfect.
Indeed the future is in ramping up into mass production and sticking to the model. They will be doing that on UEP, UPF and DU.
They dropped a Avionics switch contract because it didn't fit their direction and would have been a distraction. That's an encouraging sign that the beginning is near.

[astralvision] 16/5/2022 11:42

jimboau
i don't hold the same opinion, but you are perfectly entitled to hold that view.

[astralvision] 16/5/2022 11:32

jimboau
Re huge disconnect between what we think is going on and reality.
It doesn't seem that way on the brief AGM Q&A and other clear evidence such as employee numbers shooting up.
They clearly are very busy on a whole number of fronts and I think this will follow through into newsflow in due course.
Apart from anything else, the warrants will be acting as a big incentive to get the share price moving in the right direction.They won't want to leave it all to the last minute, come year end we will be 3 months of warrant expiry. I'm sure they are very well aware of that. I expect a strong second half of the year.
all imo.

[purchaseatthetop] 16/5/2022 11:29

Astral. That is probably the real point. We (well certainly I) focus of Tarana as it is the only bit I can track. Ethernity are looking at far more core snd exciting potential elsewhere and really Tarana is a small element not worth bothering about except that it is useful. The sell what they sell which is great.

[astralvision] 16/5/2022 11:22

dpl
thank, yes, I left out the bit re G2, sounded like they would re ready to go on that front in a few months time.

[astralvision] 16/5/2022 11:21

PaTT
yes, we established that Tarana accounted for $765K in 2021
is c $1.25m sufficient for 2022?
Who knows.
The clear impression is that DL/Ethernity are more interested in their transition to mass production and supplying solutions.
Tarana sounds like a useful sideline for ENET. We all know the component situation is real so I'm not sure there's too much to be gained by DL sandbagging wrt Tarana.
I think it will just take it on face value and look for further orders for 2023 in due course.
The good news is ,imo, there's more exciting stuff than Tarana albeit from an investors point of view we can follow Tarana relatively easily.

[jimboau] 16/5/2022 11:19

Easy one patt, there is just a huge disconnect between what people on here imagine (connecting dots on little or nothing tangible) is going on and reality, no?

[dplewis1] 16/5/2022 11:19

Cheers astral good summary. It was interesting to hear him talk about G2 and the design for the new platform - it's a good relationship but he is clearly more excited about the complete systems. Doesn't help when Xilinx hike the price of the chip by 40% either

[purchaseatthetop] 16/5/2022 11:06

Cheers astral. Trouble with them is that you just do not know whether they are simply keeping information hidden for now. I really struggle to remotely believe that there will not be a large Tarana increase for 2022. 2021 before they kicked off was $740k and Tarana are heading for 2023 multi billion IPO. Considering their revenues in 2021 were about $20m I think the BoD are just setting low hurdles. But what do I know.

[504] 16/5/2022 10:50

Certainly there's a DU contract pending which was flagged for mid year to me early in Q1 but it was a vague mid year term so could easily be now to August.
UEP2025 deserves to have high demand it's a ready to go product (like ASICs) with all the specs documented but at the price point and flexibility of FPGA virtual solutions. It's a win win and will sell in the thousands. The alternatives are not attractive and this product is almost alone in the market.
I don't know if they have actually had pre orders but the team has been busy kissing frogs on this product and they will find a few Princes genuinely ready to commit.
The main issue is separating those serious and ready from those scoping for prices for future proposals.
I feel very positive and confident but we could be waiting a bit longer (until I have all I want)

[jimboau] 16/5/2022 10:48

Lol, just a matter of time before another pw and raise would be my take away.

[2350220] 16/5/2022 10:42

Thanks from me too Astral.
Great summary.
All the best,
John

[collywobbler] 16/5/2022 10:35

Great summary many thanks Astral

[astralvision] 16/5/2022 10:30

dpl
The above is my take, please feel free to correct me if you think I've got any bits wrong
cheers
av

[astralvision] 16/5/2022 10:26

ENET Agm

Not the easiest thing to follow with bad sound, and me microphone wasn’t working to start with!
Formal business rattled through very quickly.

Just myself and one other investor(dpl) virtually there.

Tarana, now ordering for 2023. Long lead times due to component issues. So seems unlikely will get further orders for this year due to the lead time.

Re 50% of OEM’s signed up. Said not hidden any relationships. Tarana 9 years. The $400k contract is another one. If 8 OEM’s at an event, only need to get 4 signed up to have 50%.

Talked several times about the contracts they had won last year and how this was leading to follow on contracts.

Asked about transition to mass production. DL talked about how they are going from supplying a FPGA chip, where the typical cost is $200 to $800 to supplying systems. Gave the example of $1m order for $1,000 systems as example of moving up the food chain.The system will be the FPGA, plus another, for example, 500 components plus software on top. That all requires more R&D.

Sounded like the UEP 2025 system was all on track, basically they take the same board from another UEP product and customise that to sell it into other industries. They’ve got customers (at least three, I think) waiting for this product.

DL talked about the forwards position, in response to me asking about no new contracts since October. It was a good summary. They’ve got a lot of things going along at the same time, eg PON Chinese, UEP products. A lot of interest in DU, didn’t catch the exact phrase but I think we can expect orders from this direction in the not too distant future,imo.
DL is looking or hoping to exceed the numbers indicated in the broker forecast, which basically only includes signed contracts, no allowance for further deals/contracts.

DL is confident, demonstrated that with recent market purchase of shares.

I expressed concern that low market cap could lead to opportunistic bid. MR/DL adamant that that won’t happen, that it won’t get sold on the cheap. DL of the view that any serious demand for the shares could rapidly push the shares north. Theoretical example, if someone wanted millions of shares price would got to over £1. The 65p brokers target was mentioned as indicative that the current share price has no real bearing on the true worth of the company.

Please don’t scrutinise every word, it was hard to catch it all, combo technical difficulties and sometimes poor sound.
Overall I would say they seem confident going forwards and I expect the share price to finish the year much higher than where we are now.
atb
av

[dplewis1] 16/5/2022 10:09

Hard enough understanding David normally let alone when there are tech issues. The 12 month lead time puts paid to any more Tarana orders for 2022, the revenue expectations are firmly with selling complete systems. Plenty of interest in uep2025 as well as the wireless bonding. Only myself and astral on the call

[504] 16/5/2022 09:51

AGM over. Back to work people. Let's see if you can manage to deliver something this year.

[lovewinshatelosses] 16/5/2022 08:01

Or a mixture of both, PAAT :)

[purchaseatthetop] 16/5/2022 06:19

Something happening.
There were 16 jobs on both LinkedIn and the website
Now there are 13 jobs on the website and 10 on LinkedIn.
Number of staff has risen by one to 47 on LinkedIn

So, either staff recruited or stopped recruitment! You pay your money you take your choice.

[504] 15/5/2022 21:48

Back in January or February I posted that I wasn't expecting any new contract news until mid year. I still believe that will be the case.
I believe that there's been many unannounced contracts in H1 but I suspect that the management don't think that they have to report them as there's no initial financial commitment. Well beyond the cost of launching a completely new product and integrating Ethernity solution into their housing. However when market penetration reaches 50% of OEMs then it's clearly significant against the current valuation even if no sales are yet recorded. It underwrites the technology and the market needs to be aware of that officially.
I believe that we are approaching the news window now and I expect news from a UEP contract and a production order for DU cards.
I believe that Ethernity stepped back from a small avionics switch contract to concentrate on delivering the UEP.
Looking back just a few months to the management chaos of a u turn on UEP then another u turn back again wasting a couple of months in limbo.
UEP2025 is under development and ready for testing in the coming weeks. I am expecting an advanced order from a sizable ISP in North America through a OEM for a Tower based rugged solution.
I guess that we wait and see what they announce and how much they are prepared to say.

I think that it's clear to everyone that this management do exactly what suits them then hide behind the fantasy of compliance and regulation when challenged. So best find a symbiotic outcome like warrants to focus their attention. The risk factors are when not if the US private ISP market will open. Ethernity are exposed to at least 50% of the OEMs so when not if those OEMs receive orders. Then when not if production orders arrive at Ethernity.
Then we just need the management to tell the market.
I am confident on all but the parts that involve MR.

[voyager35] 14/5/2022 10:54

I'm also 60, so age is no excuse. I stopped using PC's a few years ago. When I realised that my phone was just as useful but a lot more convenient. Though recently considering getting an iPad, as the bigger screen may be better for my deteriorating eyesight. Enet are a part of my pension fund so they've still got a few years ( just a few) to get the share price up.

[purchaseatthetop] 14/5/2022 10:52

My son had brochiectasis in the bottom of his left lung. During covid they stopped doing standard old persons lung cancer ops and he shot to the top of the queue. Had the bottom third of his lung removed at Harefield. Fabulous people and really good. Now he is fine and well, studying genetics at Uni, has a great girlfriend and yesterday got an ear stud.

[2350220] 14/5/2022 10:40

Handy for Harefield hospital PATT.
John 😊