Etherstack (ASX:ESK) - CEO, David Deacon
CEO, David Deacon
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  • Wireless communications specialist Etherstack (ESK) has struck a tech licensing deal with France-based radio company TPL Systemes today
  • As part of the deal, Etherstack will license the wireless tech to be incorporated in certain TPL products
  • In return, Etherstack will pocket a royalty from the sales of any of these products
  • The royalties, however, are subject to TPL hitting certain revenue targets from the sales of the products
  • Nevertheless, investors seem pleased with today’s deal, with Etherstack shares closing 1.56 per cent higher and worth 65 cents each

Etherstack (ESK) has struck a tech licensing deal with France-based radio company TPL Systèmes today.

Under the deal, which was made through Etherstack’s U.K. subsidiary, Etherstack will licence wireless technology to be used in certain TPL products. In return, Etherstack will pocket royalties on sales for units that use this tech.

TPL designs and makes radio communications equipment for the emergency services sector.

Of course, given the nature of the deal, the revenue from today’s contract is dependant on the number of products TPL can sell. However, Etherstack said the royalties are subject to a minimum EUR440,000 (roughly A$736,000) of sales revenue from TPL — meaning if TPL doesn’t sell enough, Etherstack won’t book the royalties.

Nevertheless, Etherstack’s Waveforms and Europe, the Middle East, and Africa (EMEA) division Director, Anna Squires, spoke highly of the company’s new business partner.

“TPL Systemes has a longstanding track record of delivering exceptional products to emergency services users around the world, in particular helping firefighting and ambulance services keep our communities safer,” Anna said.

The tech manufactured by TPL is complementary to Etherstack’s products, which include missing critical radio technologies for wireless equipment manufacturers and network operators around the world.

Etherstack said its focus is on the public safety, defence, utilities, transportation, and resource sectors.

TPL Systèmes’ David Villacastin added to Anna’s comments.

“In order to accelerate delivery of new products to the market quickly, we have chosen to work with Etherstack to provide to our mission critical customers with proven, high quality wireless protocol software,” David said.

Shareholders seemed mostly pleased with today’s contract, too, with Etherstack shares gaining 1.56 per cent to close worth 65 cents each this afternoon. The company has a $78.62 million market cap.

ESK by the numbers
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