The Etherstack PLC (ASX: ESK) share price is going through the roof today after the company announced an agreement with electronics giant Samsung.
After closing at just 12 cents yesterday, Etherstack shares are currently changing hands at $1.20 (at the time of writing) – a monumental 900% gain.
About Etherstack
Etherstack is a wireless technology company that specialises in developing, manufacturing, and licensing mission-critical radio technologies for wireless equipment manufacturers and network operators across the globe.
The company has a particular focus on the public safety, defence, utilities, transportation, and resources sectors.
Why is the Etherstack share price going nuts?
This morning, Etherstack revealed it has signed a global teaming agreement with Samsung Electronics for public safety communications.
Under the agreement, the companies will join forces to deliver mission-critical push-to-talk (MCPTT) over long-term evolution (LTE) solutions to telecommunications carriers and governments around the world. End users will include first responders such as police officers, firefighters, and ambulance officers.
The partnership will utilise Etherstack's digital land mobile radio softswitching technologies, embedded within Samsung's advance network solutions.
MCPTT over LTE is an emerging cellular standard that provides public safety-grade push-to-talk solutions within 4G and 5G cellular networks.
According to Etherstack, demand for MCPTT services and equipment has been steadily growing in the past few years and is expected to rise rapidly over the next 36 to 48 months.
Terms of the deal
In a follow-up ASX announcement released at midday today, Etherstack noted it will derive revenue from this agreement when the 2 companies together supply technology to Samsung's customers.
The agreement is expected to have an initial period of 2 years and contains conditions under which it may be extended for a further 2-year period.
Commenting on the partnership, Wonil Roh, senior vice president and head of product strategy, networks business at Samsung, said:
"We recognised Etherstack's unique technologies and experience in the global LMR market, so they were the obvious choice to partner with in the MCPTT market."
Meanwhile, Etherstack chief executive, David Deacon, said:
"Etherstack has been quietly working with Samsung over the past twelve months developing secure and efficient solutions to integrate public safety networks used by first responders to next generation cellular networks."
At the time of writing, Etherstack has a market capitalisation of around $136 million. Prior to today, this figure stood at just $14 million. If you'd rather invest in larger and less speculative companies, check out the ASX shares in the free report below.
