TIDMCYAN
CyanConnode Holdings PLC
09 July 2019
CyanConnode Holdings plc
("CyanConnode" or the "Company")
Follow-on Orders from India and UK Smart Metering Implementation
Programme
CyanConnode Holdings plc (AIM: CYAN), a world leader in
Narrowband Radio Frequency (RF) Smart Mesh Networks, is pleased to
announce that it has received follow-on orders from Genus Power
Infrastructures Ltd ("Genus"), a leading Indian based smart
metering and power infrastructure company and Toshiba Information
Systems (UK) Ltd ("Toshiba") for its RF mesh technology which
offers highly reliable, low power and cost-effective M2M data
communication for smart meters.
Follow-on Indian Order
A follow-on Indian order from Genus has been received for a
further 4,050 smart metering units for the deployment at Uttar
Gujarat Vij Company Ltd ("UGVCL"). The Company expects to recognise
revenues for this contract win in H2 2019.
An initial order of 23,000 smart meters was placed by UGVCL in
July 2017 and was the first order from India for an IPv6-6LoWPAN
based technology, which was developed by Connode AB in Sweden prior
to its acquisition by CyanConnode. The IPv6-based solution supplied
to UGVCL was an early version of the standards-based Omnimesh
Advanced Metering Infrastructure (AMI) platform, the full of which
was formally launched in June 2018.
The UGVCL project was inaugurated on 27 February 2019 by The
Energy Minister of Gujarat, Shri Saurabh Bhai Patel. Notably, the
project is meeting or exceeding all service level standards, in
accordance with Central Electricity Authority of India guidelines.
The first phase of the project has seen significant improvement to
back office functions and major reduction of Aggregate Technical
& Commercial, (AT&C), losses.
Follow-on UK Smart Metering Implementation Programme (SMIP)
Order
CyanConnode has received a follow-on order from Toshiba worth
approximately GBP213,000, for service enhancements relating to the
UK Smart Metering Implementation Programme, (SMIP), which it
expects to recognise as revenue in H2 2019.
Toshiba has a contract with Telefónica which is providing
communications to the Data Communications Company, (DCC), in the
Central and Southern regions of the UK, where approximately 24m
SMETS2 meters will communicate with the DCC, using 2/3G cellular
communications hubs.
Where 2/3G cellular signal is unavailable, (known as not-spots),
a dual communications hub is installed on the SMETS2 meter. The
dual communications hub has CyanConnode's RF mesh technology
embedded alongside the 2/3G cellular technology and automatically
forms a RF mesh. Typically, where a dual communications hub is
installed, up to approximately a further four dual communications
hubs are required to form a local RF mesh. CyanConnode reconfirms
that it believes that 10% (2.4m) of SMETS2 meters, will be fitted
with the Toshiba dual communications hub and that its contract with
Toshiba will ultimately deliver a total of approximately GBP25.7m
of revenue.
Installation of SMETS2 meters commenced just over a year ago and
the DCC confirms that over 1.3m meters are now connected to its
network. (1)
John Cronin, CyanConnode Executive Chairman, commented:
"We are pleased to announce follow-on orders for existing
projects which will deliver revenue in 2019. The additional units
for the deployment at UGVCL further demonstrate the suitability of
Omnimesh for the Indian market, which continues to present a vast
opportunity for growth for CyanConnode. In June 2019 Bloomberg
reported that "India is considering a plan to install smart meters
in every home and business as part of its ongoing effort to turn
around the country's ailing power sector, according to officials
with knowledge of the situation." (1). Following this report and
Narendra Modi's re-election as India's Prime Minister, we expect to
see renewed activity of the Smart Meters National Programme in H2
2019, resulting in further significant orders for the Omnimesh AMI
platform.
"Solid progress is also being made on the roll-out of SMETS2
meters, and we look forward to giving further updates on global
sales of our innovative smart metering solutions as the year
unfolds."
Sources:
1 https://www.smartdcc.co.uk/
2
https://www.bloomberg.com/news/articles/2019-06-27/india-considers-mass-rollout-of-smart-meters-to-revive-utilities
Enquiries:
CyanConnode Holdings plc Tel: +44 (0) 1223 225 060
John Cronin, Executive Chairman www.cyanconnode.com
Yellow Jersey PR (Financial PR) Tel: +44 (0) 20 3004 9512
Felicity Winkles / Sarah Hollins/ Annabel Atkins
cyanconnode@yellowjerseypr.com
Arden Partners plc (Joint Broker) Tel: +44 (0) 20 7614 5900
Paul Shackleton / Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking)
About CyanConnode
CyanConnode (AIM:CYAN.L), is a world leader in Narrowband Radio
Frequency (RF) Smart Mesh Networks, which are used for machine to
machine (M2M) communication. As well as being self-forming and
self-healing, CyanConnode's RF Smart Mesh Networks are designed for
rapid deployment, whilst giving exceptional performance and
competitive total cost of ownership.
In June 2018, CyanConnode launched its award-winning Omnimesh
Advanced Metering Infrastructure (AMI) platform, which has already
gained considerable commercial traction, especially in India which
is a key market for the Company.
Through a Global partner eco-system, which is vendor agnostic,
CyanConnode has several routes to market, therefore it is well
positioned to capitalise upon increasing Global demand for smart
metering solutions.
For more information, please visit www.cyanconnode.com
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END
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