6pm red dot13 Nov 2018 19:10
Someone's working late.
As an aside someone asked recently where did I get the £10 million 2018 year end forecast for CC. It was made six months ago in May in a FinnCap note.
"CyanConnode (CYAN): FY 2018 revenue on track with new regions opened
Key data
Share price (p): 11.3
Target price (p): U/R
Market cap (£m): 14.4
Enterprise value (£m): 9.0
2017 results are largely as expected after January’s trading update. Affected by a delayed delivery, revenue fell 36% YoY to £1.2m contributing to a cash loss of £10.7m. R&D spend increased during 2017 with development of a new standards based product which is now complete. Cash at the YE was £5.4m after an £11.3m equity injection in the year and we calculate current cash of under £3m but with a further £1.4m due from R&D tax credits. The cash burn will be reduced during 2018, and whilst there is no visibility on the Bangladesh order, new territories have been opened up and a large order for $3.2m in India is announced with the results. The cash should be sufficient through to Q4, when the bulk of the year’s £10m expected revenues are due to be booked. To be prudent, our forecasts do not include anything from Bangladesh and little from Iran; however, delivering them will require additional working capital (our forecasts assume £2m from equity) with a number of sources being considered, including licensing. The uncertainty on timing and funding means this remains a highly speculative holding and we place our TP under review. We do see opportunity in a huge order book and strong IP; also a shift of emphasis from hardware to software with a licence and royalty model for the new product developed during the year."
https://www.finncap.com/news-insight/finncap-research-company-notes-21-may-2018
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