CyanConnode Holdings PLC Contract Award Extension (1177I)
June 15 2017 - 1:00AM
UK Regulatory
TIDMCYAN
RNS Number : 1177I
CyanConnode Holdings PLC
15 June 2017
CyanConnode Holdings plc
("CyanConnode" or the "Company")
Contract Award Extension
Purchase order increase from $5.4 million to $9.3 million for
smart metering contract in Bangladesh
CyanConnode, the world leader in narrowband radio mesh networks,
announces that the $5.4 million purchase order from a specialist in
energy management systems for a smart metering contract in
Bangladesh, South Asia announced on 9 February 2017 has now been
increased to $9.3 million.
The order for CyanConnode's Advanced Metering Infrastructure
("AMI") solution has been increased from 150,000 units to 250,000
units to meet the increased requirements of the geographic
territory in Bangladesh that has been awarded to the energy
management systems company based in Eastern Europe. The energy
management system company, which manufactures circa. 1.5 million
utility meters per year, will integrate CyanConnode's hardware with
its meters and shipment to their production facility will take
place over the next 12-18 months.
CyanConnode will also provide Head End Server Software, which
will be hosted by the energy management system company, with annual
software licence income being recognised over a ten-year
contractual period following successful smart meter implementation.
The recurring revenue software licences and annual maintenance
contract, which represents approximately 50% of the revised
purchase order value, will be paid annually and charged on a per
meter per year basis.
This increased order from the Ukrainian company for utility
customers in Bangladesh demonstrates the success of the company's
scalable business model. Furthermore, the order size and revenue
visibility provided by this 10-year contract reflects the Company's
leading position within the smart metering industry across both
emerging markets and Europe.
The energy management system company has formed a local entity,
a new utility that has entered a long-term agreement with the
Bangladeshi Government to provide electricity to consumers. The new
utility has a consumer base of four million customers, which
provides the potential for further substantive orders. The overall
number of electricity consumers in Bangladesh is 58 million.
Bangladesh is among four South Asian countries that are struggling
due to increasing pressure from rising electricity demand, failure
to collect revenue and poor reliability, according to smart grid
research specialists Northeast Group. Over the next decade, these
countries will make significant investments to modernise smart grid
infrastructure, particularly in the metering segment. Smart grid
investment is projected to total $8.1 billion over the period
2016-2026, with large-scale funding from the Asian Development
Bank, the World Bank as well as bilateral aid organisations.
John Cronin, CyanConnode Executive Chairman, commented: "We are
pleased to announce a significant increase to the recent order from
our partner for their deployment in Bangladesh. CyanConnode
provides world class support to its partners, enabling them to
integrate and deploy its narrowband mesh network technology.
Through the transfer of skills this collaborative approach
facilitates customer ownership and develops customer loyalty, which
is demonstrated by this substantial order."
Enquiries:
CyanConnode Holdings plc Tel: +44 1223 225 060
John Cronin, Executive Chairman www.cyanconnode.com
FinnCap Ltd (Nomad and Broker) Tel: +44 20 7220 0500
Adrian Hargrave / Giles Rolls (Corporate
Finance)
Alice Lane (Corporate Broking)
Walbrook PR (Financial PR) Tel: +44 20 7933 8780
Paul Cornelius / Nick Rome cyanconnode@walbrookpr.com
About CyanConnode
CyanConnode is a world leader in narrowband RF mesh networks
that enable Omni Internet of Things (IoT) communications. Its
innovative solutions use sub GHz frequencies and are optimised for
exceptional performance. Ultimesh solutions provide end-to-end
quality of service and total cost of ownership and Panmesh delivers
standards-based IPv6 solutions, enabling rapid innovation for the
implementation of 3rd party applications. Through its global
partner eco-system, CyanConnode provides customers with the
flexibility and choice required to converge networks for
applications in smart cities and IoT, delivering increased customer
value.
For more information, please visit www.cyanconnode.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFIRRRISLID
(END) Dow Jones Newswires
June 15, 2017 02:00 ET (06:00 GMT)
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From Apr 2024 to May 2024
Cyanconnode (LSE:CYAN)
Historical Stock Chart
From May 2023 to May 2024