Ethernity Networks shares surged on Wednesday after announcing it is generating ongoing revenue from its Tier-1 US defence and aerospace customer, with additional work now expected to bring in between $0.8m and $1.0m across the current financial year.
Ethernity Networks shares were 44% higher at the time of writing.
The AIM-listed data processing semiconductor specialist completed its original $1.3m single-platform licence agreement with the customer back in August 2025 but has continued to pick up paid work through product enhancements.
It has already recognised $0.2m in revenue from the programme during the first quarter of 2026, with the remaining expected to be recognised in 2026FY. The company generated $598,599 revenue in the six months to June 2025. Full-year 2025 results are yet to be released.
Encouragingly, the customer has begun shipping its platform with Ethernity’s IP embedded and is now evaluating an expansion to a second platform. Any additional licence deal would be on top of the revenue guidance already outlined, though discussions are still in the early stages.
David Levi, CEO of Ethernity Networks, said: “This Tier-1 Customer continues to provide both near-term revenue visibility and potential for further platform expansion. The progression from initial deployment to ongoing enhancement work supports our strategy of deepening engagements with high-value customers.”