Etherstack plc is delighted to announce that its subsidiary,...

Etherstack plc is delighted to announce that its subsidiary, Etherstack Wireless Ltd, has signed an A$11.6m deal with Samsung Electronics Co. Limited of Korea (‘Samsung’) to supply Etherstack network elements to Samsung for provision to a telecommunications carrier client of Samsung’s for public safety use.

The Company now reports that Samsung has signed a binding agreement with a carrier, and as a result, Etherstack and Samsung have entered into a contract under which Etherstack will support Samsung.

The key terms of the contract are:
• Total revenues for Etherstack comprising licence fees, project deployment revenues and support revenues are USD$8.5 million (~AUD$11.6 million), which includes USD$1.2 million revenue previously announced on 18th February 2021.
• The term of the contract is 5 years, with the majority of the licence revenues expected to be recognised across the Company’s 2021, 2022 and 2023 financial years (31 Dec year end). Initial support revenues included in the deal are expected to commence in 2022 and be earned over 3 years from the date of delivery of the solution to Samsung’s customer.
• Additionally, further long-term annual support revenues, while not yet currently contracted, are expected to renew in FY2025, with a typical minimum lifespan of 10-15 years for public safety infrastructure projects.