Etherstack PLC (ASX: ESK) shares will be on watch today. This comes after the company announced it has signed a new deal with consumer electronics powerhouse, Samsung for integration activities.
At market close yesterday, shares in the communications wireless technology company finished the day at 63 cents.
Let's take a closer look at the contract win that Etherstack reported.
What did Etherstack announce?
According to its release, Etherstack advised that its subsidiary, Etherstack Wireless Ltd, has entered a US$1.2 million contract agreement with Samsung.
In short, Etherstack stated the agreement will see it provide 'a license to existing technology for the purposes of assisting the integration of the joint solution aimed at the telecommunications carrier market'.
The deal forms part of the Global Teaming Agreement that was previously announced in June last year.
Additionally, Etherstack noted that the signed deal does not include the sale of its solution to an end carrier.
Both companies are said to be working together on multiple carrier pursuits, with sales coming to fruition sometime this year. Moreover, Etherstack revealed that once the groundwork has been completed, these deals would require an additional licence and support revenues.
Quick take
Established in 1995, Etherstack designs develop and deploy wireless communications software and products across the globe. The company operates in the mission-critical radio technologies market.
Etherstack has offices in the United Kingdom, Australia, Japan, and the United States. The company services an array of sectors that include public safety, defence, utilities, transportation, and resources.
Share price snapshot
The Etherstack share price has accelerated over the last 12 months, rising to more than 240%. In late June, the company announced a Global Teaming Agreement with Samsung that pushed its shares to an all-time high of $3.70.
Consequently, since this announcement, the company's shares have been hovering around the low 60-cent mark.
Based on the current share price, Etherstack has a market capitalisation of around $81 million.
