CyanConnode Holdings PLC New $10M Purchase Order Extension in Bangladesh (9658N)
August 15 2017 - 2:00AM
UK Regulatory
TIDMCYAN
RNS Number : 9658N
CyanConnode Holdings PLC
15 August 2017
CyanConnode Holdings plc
("CyanConnode" or the "Company")
New $10M Purchase Order Extension in Bangladesh
CyanConnode, the world leader in narrowband radio mesh networks,
announces receipt of a $10 million purchase order extension from
its specialist in energy management systems customer for a smart
metering contract in Bangladesh, South Asia.
This new order more than doubles the accumulated orders from the
customer to date to $19 million, with the initial order already
having been extended from $5 to $9 million in June 2017. This
latest extension for CyanConnode's Advanced Metering Infrastructure
("AMI") solution is for an additional 300,000 units, bringing the
total order size to date to 550,000 units.
As a result, the order book, representing the value of purchase
orders received but not yet delivered, has grown significantly from
GBP13 million at the beginning of the calendar year to GBP28
million today, which is in addition to the expected GBP25 million
of software licence and support fees from the UK smart metering
contract.
Strengthened Relationship
This latest extension will enable the customer 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 approximately 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
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 55% of the purchase order
value, will be paid annually and charged on a per meter per year
basis.
Growing Levels of Demand
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 approximately 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: "The
size and speed of this further order from our partner for their
smart meter deployment in Bangladesh highlights the significant
opportunity in the region with the repeat order demonstrating the
scalability of our business model. Furthermore, the order size and
revenue visibility provided by this 10-year contract further
reflects the Company's leading position within the smart metering
industry across both emerging markets and Europe."
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
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 / Max Bullen-Smith
(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
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