RE: Maintenance Contract28 Jul 2023 12:14
Hi Ruprecht,
Good to see you are still here. Thanks for posting your recollections on price.
Can only find these as reference
2021 : Order for 350,000 Omnimesh modules worth more than £6 million.
"It is also the first Indian order where the Omnimesh Head End Server (HES), will communicate with both RF Mesh and Cellular Omnimesh modules. Most of the order is being paid for under a CAPEX model with the balance of the order being paid for under an OPEX model with Equated Monthly Instalments (EMI), over a five-year period. The smart meters, which are being supplied by existing partners, will be deployed over thirty months .
This makes approx. £17 per module.
Which at 70% paid over two years for contract = £ 12 over two years, £6 per year and remaining £5 for five years maintenance contract. = £1 pa, per unit
https://cyanconnode.com/wp-content/uploads/2021/10/261753-Cyanconnode-RA_Interactive-6-October-2021.pdf
This one is closer to Ruprecht's recollection
2018, CyanConnode announced an order for ..... two projects worth over INR 1 billion ( approx. £10 million) for 430,000 Omnimesh communications modules.
Revenue of INR 113 million ( £ 1.1 million , approx) 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.
https://www.cambridgenetwork.co.uk/news/cyanconnode-secures-indian-contract-430000-omnimesh-modules
This award equates to approx. £23 per module, 70% paid as contract value = £16 per unit over two years, = £8 Pa and the remaining 30% = £7 paid over five years maintenance contract = £1.40 per year, per unit.
So taking the lowest figures a two year contract value of £6 per unit per year , over two years followed by a £1 per unit, per year maintenance payment for anything between 5- 10 years depending on contract length.
We are told in the latest RNS that " Orders for 2.3m modules won in India during the period - higher than the total number of modules won in India in the company's history prior to the current year taking order book to 3.6m during the financial year, of which 2.3m were still to be deployed. Post period this order book has increased further to 4.2m"
So 3.6 million modules won in EY23, around 1.3m have been deployed, the remaining 2.3m are being deployed. Order book has since increased by 600,000 to a total of 4.2 m. = 2.9 modules need deploying.
If we assume CC can deploy the full 4.2m on book End of Year 24. Revenue could look like £6 x 3.9 m remaining modules on book needing to be deployed = £23.4 million.
Then once maintenance contract begins 4.2 units x £1 per year = £4.2 million per year for however long maintenance contract is agreed.
Just some very rough thoughts. With guess
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