Order Update (3312J)
June 29 2011 - 2:00AM
UK Regulatory
TIDMCYAN
RNS Number : 3312J
Cyan Holdings Plc
29 June 2011
Cyan Holdings Plc
("Cyan" or "the Company")
Order Update: China Public Lighting Control
Cyan Holdings Plc (AIM:CYAN.L), the integrated system design
company delivering mesh based flexible wireless solutions for
lighting control, utility metering and industrial telemetry
announces that it has received a follow on order from a previously
announced Chinese Lighting customer.
This follow on order is for a further 12,000 modules, for a
project which has now grown to over 220,000 units in a single city.
Including this order Cyan has received orders for 24,000 units to
date from this customer for this project and Cyan expects to
receive orders to fulfil it.
The Board of Cyan understands that since the initial order, this
customer has been actively marketing their HID lighting solution
incorporating Cyan's technology and has three further cities poised
to order their product. This follow-on order will be installed in a
suburb of the city for which the first order was made before the
end of Q3, in order to demonstrate a single installation of greater
than 10,000 lights and also to demonstrate a new maintenance
feature implemented by Cyan. This additional software feature will
signal the location and type of any light failure and provide a
list of required maintenance calls each morning. Cyan understands
that this demonstration of a 10,000 light installation is a
prerequisite for orders from these three cities. Cyan believes that
it is reasonable to assume that new cities will have comparable
requirements.
Since the original order this customer's product has received
authorization and endorsement from multiple Chinese agencies.
Additionally Cyan has been informed that in July this customer
expects to be allocated further cities under a government sponsored
and investment funded energy management contract (EMC). The Board
understands that the potential contract could require replacement
levels in excess of five million of units over a three year
period.
Kenn Lamb, CEO of Cyan Holdings plc commented:
"I am delighted to announce this follow on order. We have been
working with this customer on their initial installations and have
developed a hand held unit that will accelerate deployment, but
even without this the customer is on track to achieve their target
installation rate of 10,000 units per month in this first city. We
can see that a further three cities are likely to place orders
early in Q4, but it is the breaking news of the imminent release of
government funds for EMC contracts that will transform the size of
the market for this customer and for Cyan lighting control
products. The potential requirement for millions of units in over
three years is consistent with our understanding of the size of the
lighting market in China and could be transformational in the
Company's growth. This is one of a number of active lighting
customers in China and India, which together promise to deliver
significant revenue growth. I am pleased to announce that first
half 2011 revenues will exceed revenues for the whole of 2010
despite this being only the very beginnings of the expected revenue
growth curve."
Cyan Holdings plc Tel: +44 (0) 1954 234 400
Kenn Lamb, CEO
www.cyantechnology.com
Cenkos Securities plc Tel: +44 (0)20 7397 8900
NOMAD and Joint Broker Tel: +44 (0)20 7101 7070
Stephen Keys / Adrian
Hargrave
XCAP Securities plc
Joint Broker
John Belliss / Parimal
Kumar
Hansard Communications Tel: +44 (0)20 7245 1100
Ltd
Adam Reynolds / Nicholas
Nelson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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