Wireless technology company Etherstack (ASX:ESK)
have inked a $11.6 million deal with Samsung for 5-years.
Etherstack Wireless, their subsidiary is set to supply one of Samsung’s clients the infrastructure to be utilized for safety grade solutions.
The news comes after they joined forces last year to pursue opportunities to provide first responders critical communications technology under a 2-year deal.
The $11.6 million deal will see Etherstack rake in US$8.5 million in revenue which includes the US$1.2 million revenue announced in February this year.
Just only a few weeks ago, the $80.1 million wireless communications company upgraded its earnings guidance for the first-half of this year.
Initially they were forecasting a range of US$3.5 million to US$4.0 million, though with two other projects ahead of schedule, the wireless innovator expects earnings to be in excess of US$4.2 million, pending final royalty reports from international licensees.
Along with the upbeat earnings guidance, the company did celebrate a 76 per cent revenue surge of US$4.2 million for the first half of the year when compared to the same time in 2020. They have also told investors that there is US$4.2 million worth of sales in the pipeline for the second half of this year.
The company are pursuing multiple carrier deals with Samsung with this agreement to be the first of the new partnership.
Chief executive officer David Deacon said, “Samsung and Etherstack have been working on joint carrier pursuits for mission critical push-to-x over the last two years and it is fantastic to notch up our first carrier win with Samsung. Samsung are clearly the leader in 5G network deployments and we are confident that this initial win will lead to further carrier awards”.
Shares in Etherstack (ASX:ESK)
are trading 4 per cent higher at $0.645.