Etherstack (ASX:ESK) signs agreements with Samsung and Nokia


by Lauren Hayes

Etherstack Limited (ASX:ESK) CEO and Executive Director David Deacon discusses recent agreements with Samsung and Nokia and the outlook for the months ahead.

Lauren Hayes: We're talking today to Etherstack (ASX:ESK). If you aren't familiar with the company, ASX code ESK, with a market cap of around $57.5m. We are speaking with the CEO, David Deacon. David, welcome back to the network. First up, for investors new to the company, could you provide a quick introduction to ESK?

David Deacon: Sure. Etherstack is a wireless technology licensing company. We license technology to dozens of manufacturers around the world, who embed our technology in their solutions for delivering. We specialise in the mission critical communications industry, which is for essential communications such as police, fire, ambulance, electric utilities, resources and defence applications. Our product is primarily software and some wireless technology and systems components that we manufacture domestically in Australia, and put together into the entire solution and deliver to our clients.

Lauren Hayes: David, you recently announced a five-year renewal extension of the global teaming agreement with Samsung Electronics. Can you expand on the significance of this agreement?

David Deacon: Absolutely. Look, Samsung and Etherstack have been partners for several years now. We have developed a new piece of technology that goes into 4G and 5G carrier networks to allow those networks to interconnect with the traditional digital radio networks that are used in the mission critical industry. This piece of technology Samsung are distributing inside 4G and 5G network deployments that they're doing around the world, and what this five-year renewal is about is really a reiteration of that commitment to continue to invest and work with Etherstack on these solutions. We've won already in the first two years the largest carrier in the world, AT&T. Samsung have signed for this solution. And we're certainly working on multiple other carriers with Samsung at the moment, and clearly hope to expand from this here.

Lauren Hayes: There was an announcement with Nokia a few weeks ago. How does this fit into the equation?

David Deacon: Look, the relationship with Nokia is fantastic. I think what it really is, is it's really a validation of the type of technology that we're producing, that we're getting really world-class names such as Samsung, Nokia and other people licensing our technology to put into these networks. These networks, we get upfront licensing fees, as well as extremely long support revenues, often 10 or 15 years in length, which is fantastic for the company and the shareholders.

Lauren Hayes: Your recent announcements would suggest things are really starting to warm up. What can investors expect from ESK over the next 6 to 12 months?

David Deacon: Well, look, our financial year is 31 December. Certainly, we had a very good start in the first half of this year with fantastic growth and profitability, and this new announcement and some of the announcements, including the defence announcements and other announcements the last few weeks, really put a smile on all of our faces that certainly a good year is going from good to better.

Lauren Hayes: David Deacon, thanks for the update.

David Deacon: Really appreciate it. Thanks, Lauren. Good day.


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