CyanConnode Holdings PLC Trading Update (3165N)
January 17 2019 - 2:01AM
UK Regulatory
TIDMCYAN
RNS Number : 3165N
CyanConnode Holdings PLC
17 January 2019
CyanConnode Holdings plc
("CyanConnode" or the "Company")
Trading Update
FY Revenues significantly exceed those achieved in FY 2017
CyanConnode (AIM: CYAN), a world leader in Narrowband Radio
Frequency (RF) Smart Mesh Networks, announces the following trading
update for the year ending 31 December 2018.
Financial Highlights
CyanConnode expects FY 2018 revenues to be approximately GBP4.7
million, up 400% on FY 2017 revenues of GBP1.17 million, with India
and the Nordics being the main contributors to organic growth. When
audited financial statements are released in due course, the
operating loss before tax is expected to show a significant
improvement over FY 2017.
Operational Highlights
India
Following the launch of Omnimesh in June 2018, significant
progress was made and revenue in India exceeded CyanConnode's 2018
India business plan forecast. Orders to the value of $18.9 million
for Omnimesh have been received from customers to date with
approximately $4 million delivered against these orders in the
period.
In Q4, CyanConnode's local manufacturing partner increased
module production to 32,000 units per month.
Furthermore, Indian Utilities continue to issue large 'Requests
for Proposals' and on 24 December 2018, the Indian Government
announced that it had mandated the use of smart prepaid electricity
meters.([1]) Consequently, CyanConnode has taken steps to ensure
module production by its local manufacturing partner can be scaled
up to meet accelerating demand.
China
On the 7 December 2018, CyanConnode announced its first Hardware
Technology License Agreement. The $4 million Agreement allows
Beijing Jingybeifang Instrument Co. Ltd (Beijing Instruments) to
manufacture CyanConnode's modules for integration into their smart
meters and production is estimated to commence in H2 2019.
The Board are aware that expectations for 2018 included revenue
from the license agreement to be recognised on an upfront basis,
however after reviewing the matter the Directors consider it
prudent for revenue to be recognised upon module production rather
than a one-off sum so that revenue is in line with underlying
activity.
([1])
https://economictimes.indiatimes.com/industry/energy/power/power-ministry-mandates-use-of-smart-prepaid-meters-april-2019-onwards/articleshow/67233334.cms
Nordics
During the period CyanConnode announced two orders from Nordic
customers, including an order for perpetual software licenses and
annual maintenance fees for an initial period of 10 years. A
further order was also received from an existing customer for a
smart metering deployment.
UKSMIP
CyanConnode has a contract to provide Toshiba with software
licenses and support for Telefónica's SMETS2 Communications Hub.
These Hubs are being installed in the Central and Southern regions
and CyanConnode's technology is used where the cellular signal
cannot reach the meter location (Not-Spots).
The roll-out of SMETS2 meters commenced in Q3 2018 and gained
momentum during Q4. This momentum is expected to continue during
2019.
Rest of the World
The smart metering market in the Rest of the World continues to
mature and during the year two new distribution agreements were
signed for the Philippines, UAE and Bahrain.
Several markets in which CyanConnode has won contracts suffer
from geopolitical risk and as a consequence contracts in
Bangladesh, Iran and Ukraine have slowed. CyanConnode is working
closely with its partners and will continue to scrutinise the
deliverability of the contracts in those jurisdictions.
Outlook
CyanConnode's 2019 business plan has been prudently built with
the potential for material upgrades during the year. CyanConnode
expects 2019 revenue to be significantly higher than 2018.
John Cronin, CyanConnode Executive Chairman, commented:
"Meaningful progress has been made during 2018 and I anticipate
further progress during 2019. I would like to thank shareholders
for their continued support including their further capital
investment. I would also like to thank all our staff for their
dedication and efforts during the year."
Enquiries:
CyanConnode Holdings plc Tel: +44 (0) 1223 225
060
John Cronin, Executive Chairman www.cyanconnode.com
Arden Partners plc (Nomad and Broker) Tel: +44 (0) 20 7614
5900
Paul Shackleton / Dan Gee-Summons (Corporate
Finance)
Simon Johnson (Corporate Broking)
Walbrook PR (Financial PR) Tel: +44(0) 20 7933 8780
Paul Cornelius / Nick Rome cyanconnode@walbrookpr.com
About CyanConnode
CyanConnode is a world leader in Narrowband Radio Frequency (RF)
Smart Mesh Networks that facilitate machine to machine (M2M)
communication. CyanConnode's innovative network technology, which
is self-forming and self-healing, uses the Licence Free Industrial,
Scientific and Medical (ISM) Radio Band which is optimised to give
exceptional performance and competitive total cost of ownership.
Through global partnerships, CyanConnode provides customers with
solutions for the rapid deployment of local or countrywide ISM RF
Smart Mesh Networks that provide reliable and secure M2M
communication.
For more information, please visit www.cyanconnode.com.
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END
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