CyanConnode receives ?3.3m order as it moves towards breakeven

(Sharecast News) - Smart metering and mesh network provider CyanConnode Holdings has received the formal purchase order relating to the letter of intent from its partner Genus Power Infrastructures, it announced on Monday, which was initially reported on 16 December.
The AIM-traded firm said the purchase order, worth £3.3m, included a full set of terms and conditions under which the project would be implemented.

Under the order, CyanConnode said it would supply 'Advanced Metering Infrastructure' (AMI) standards-based hardware, services, and head-end software, including a perpetual license and an annual maintenance contract.

The company said its 'Omnimesh' technology would provide a network canopy, enabling a hybrid radio frequency (RF) smart mesh and cellular communication platform, that would be scalable to 200,000 smart meters.

It said the installation of the project was expected to be completed within the next 15 months, with around 80% of revenue being recognised during the first two years, and the balance of approximately 20% being received during a further seven-year support and maintenance contract that would begin upon project completion and the 'go live' phase.

The first project planning meeting to discuss the roll out and installation of the meters would take place during January.

"Preserving and managing CyanConnode's cash remains a key focus as the company moves towards break-even, with a number of short to medium term funding options being considered to help strengthen this position," the board said in its statement.

"For example, a letter of credit is being provided by Genus for this project, which will mitigate CyanConnode's financial exposure relating to the manufacture of up to 200,000 communications modules.

"The letter of credit will also facilitate advanced payment for those modules, as and when they are delivered to Genus."

At 1548 GMT, shares in CyanConnode Holdings were down 4% at 2.86p.