CyanConnode Holdings PLC Update on Delayed Indian Contract (8989O)
04 June 2020 - 4:00PM
UK Regulatory
TIDMCYAN
RNS Number : 8989O
CyanConnode Holdings PLC
04 June 2020
4 June 2020
CyanConnode Holdings plc
("CyanConnode" or the "Company")
Update on Delayed Indian Contract for 430,000 Omnimesh
Modules
CyanConnode Holdings plc (AIM: CYAN), a world leader in
Narrowband Radio Frequency (RF) Smart Mesh Networks, is pleased to
announce that a substantial Indian contract relating to two
projects, which had been delayed, has now received the necessary
approvals to resume the implementation.
In September 2018, CyanConnode announced an order for the Indian
Utility, Jaipur Vidyut Vitran Nigam Ltd ("JVVNL"), for two projects
worth over INR 1 billion. The order is for Omnimesh communications
modules, perpetual software licenses, installation services,
together with a support and maintenance contract for an initial
period of five years, and results in CyanConnode's largest
deployment covering more than 430,000 Omnimesh-enabled smart meters
for a single Indian Utility.
During 2019 and in its interim results reported on 31 March
2020, the Company announced that the JVVNL contract had been
delayed, thereby causing revenues for the period ended 31 March
2020 to be significantly lower than had been forecast.
CyanConnode's partner for these projects has confirmed to
CyanConnode that it has received the necessary clearance letter
from JVVNL and that the implementation for both projects can now
resume.
Revenue of INR 113 million was recognised against the contract
during 2018, and the Company now expects most of the remaining
revenue for the implementation phase, (approximately 70% of the
contract value), to be recognised within the next two years. The
remainder of the revenue will be recognised during the five-year
support and maintenance contracts.
Covid-19 Update
On 31 March 2020, CyanConnode updated the market on its response
to threats caused by Covid-19 and measures taken to mitigate its
impact. Further steps have been taken to reduce the Company's cost
base and the Board continues to reduce and minimise the effects
caused by Covid-19.
While all employees in all jurisdictions continue to work
successfully from home, the Company has put in place a strict
social distancing policy and is following all UK Government
guidelines. The Company remains fully operational and due to the
quality and flexibility of its staff, the impact resulting from the
lockdowns has been minimal.
CyanConnode's also confirms that its Thai contract continues to
meet project deliverables and that payments were received from the
customer at the end of March and May 2020, in line with
expectations.
Anil Daulani, CyanConnode India CEO and MD, commented:
"We are delighted to receive the approval to move forward with
this significant contract, to further showcase the benefits of
CyanConnode's award winning Omnimesh technology. We are really
looking forward to working with our partner to provide major
benefits to JVVNL."
- Ends -
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
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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