CyanConnode Holdings PLC Trading Update (9095K)
July 13 2017 - 2:00AM
UK Regulatory
TIDMCYAN
RNS Number : 9095K
CyanConnode Holdings PLC
13 July 2017
CyanConnode Holdings plc
("CyanConnode" or the "Company")
Trading Update
CyanConnode Holdings plc (AIM:CYAN.L), the world leader in
narrowband radio mesh networks, provides a trading update for the
six month period ending 30 June 2017.
Key Developments
This was a busy period for the Company with key existing
relationships strengthened and the Company's global reach enhanced.
This was demonstrated by a combination of both new orders and
follow on contract wins in Bangladesh, India and Sweden worth a
total of GBP7.6 million, which were won and will now be delivered
through the well-established partner eco-system.
Financial Highlights
Revenue for the period was in line with management's
expectations at GBP0.6 million as the revenue mix transitioned from
low-margin third party electricity meters, delivered to a specific
customer in India in the corresponding period, towards the more
regular revenue mix of CyanConnode hardware, software and
professional services.
The Company is pleased with progress on its software recurring
revenue model, with approximately 50% of the GBP7.1 million order
for Bangladesh for the period from recurring software licenses.
The order book, representing the value of purchase orders
received but not yet delivered, grew significantly over the six
month trading period from GBP13.0 million to GBP20.1 million, which
is in addition to the expected GBP25.0 million of software licence
and support fees from the UK smart metering contract.
During the first six months of 2017, the Company collected
customer payments of GBP1.1 million. As of 30 June 2017, net cash
was GBP3.1 million compared with GBP3.9 million at the end of the
financial year to December 2016 and GBP2.4 million at the end of
June 2016.
Outlook
The Company continues to develop its software recurring revenue
model, underpinning revenue visibility with further margin
expansion expected from both existing and new opportunities. The
order book, which the Company will commence delivering on during
the second half, new opportunity pipeline and growing global
presence underpin management's confidence in a strong performance
during the remainder of the current financial year and beyond.
Immediately following the period end, CyanConnode announced a
GBP0.9 million order from India, which has further increased the
order book to GBP21 million.
As the Company services and delivers against the order book
above, management is confident that trading during the second half
will be significantly ahead of the period under review.
John Cronin, CyanConnode Executive Chairman, commented: "The
progress made during the period ensures we are well placed to build
on the momentum achieved by expanding our capabilities and
strengthening our brand globally. We have now built a world class
development and delivery organisation and the value of this has
directly resulted in the follow on orders from Tata Power and in
Bangladesh in the period.
"We are extremely excited by the continued opportunity, security
and visibility provided by the growing number of deployments as we
now start to deliver on our significant order book. The quality of
our products and customer base signify the strength of our
operations and reflect our continued efforts to deliver results for
shareholders on a growing number of fronts. CyanConnode is now
becoming a well-established business, with highly competitive
solutions which industry leading customers like Tata Power are
buying and then re-ordering on a repeat basis."
Enquiries:
CyanConnode Holdings plc Tel: +44 (0) 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(0) 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.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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