Last checked at 16 Dec 2019 07:00
16 December 2019
CyanConnode Holdings plc
("CyanConnode" or the "Company")
New Order for Smart Metering Project in South India
CyanConnode Holdings plc (AIM: CYAN), a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, is pleased to announce that it has received a Letter of Intent (LOI) from partner Genus Power Infrastructures Limited ("Genus") for a substantial order from a new end customer. This LOI relates to a 142,000 unit smart metering deployment for one of the largest government-owned utilities in South India. The detailed contractual terms and scope of work for the order are being agreed.
Under this LOI, CyanConnode will supply Advanced Metering Infrastructure (AMI) standards-based hardware, services, and head-end software, which includes a perpetual license and an annual maintenance contract. The Company's Omnimesh technology will provide a network canopy, enabling a hybrid RF smart mesh and cellular communication platform that is scalable to 200,000 smart meters. The installation of the project is expected within the next fifteen months, with approximately 80% of the revenue being recognised during the first two years and the balance being received during a further 7-year support and maintenance contract.
Through Genus, CyanConnode's technology was selected following the Utility's competitive bidding process. This process included a request for proposal (RFP) as part of the bid evaluation process.
The LOI is one of the orders that was referred to in the Company's announcement on 31 October 2019. The other orders are still being negotiated and have not been awarded to date. As a result of the delays in the award of these contracts the Company anticipate that operating cost savings will be approximately £0.8 million per annum rather than £0.48 million previously reported on 13 May 2019. The Board anticipate that these in year cost savings will provide further benefit into 2020, and anticipate the savings to increase by a further £1.2 million per annum for 2020.
Anil Daulani, CEO & Managing Director of CyanConnode India, commented:
"We are delighted to have received a LOI from Genus, which relates to an order they have received from a new end customer in South India.
"As India begins to evolve into the world's largest smart metering market, utilities have begun to realise the benefits of CyanConnode's robust RF mesh technology, and I therefore look forward to giving further updates in due course."
JK Agarwal, Joint Managing Director of Genus, commented:
"The partnership with CyanConnode brings together complementary products and a wealth of expertise in the smart metering / technology domain that will meet our customers' needs and support the Indian government's objectives."
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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 9512Sarah 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
About Genus
Genus Power Infrastructures Limited, an ISO 9001 & 14001 certified company is an integral part of the US $400 million Kailash Group. Genus has two business divisions offering highly innovative and sustainable solutions to the power sector.
The Metering Solution Division provides a complete range of Electricity Meters such as Multi-Functional Single Phase and Three Phase Meters, CT Operated Meters, ABT & Grid Meters, DT Meters, Pre-Payment Meters, Smart Meters, AMI, MDAS etc.
The Engineering Construction and Contracts Division undertakes Turnkey power projects such as Sub-Station erection up to 420kV, Laying up of transmission & distribution lines, Rural Electrification, Switchyard, Network Refurbishment etc.
Equipped with avant-grade manufacturing facilities, complete forward and backward integration from plastic parts to final products, automated SMT lines, Lean Assembly techniques and a team of highly qualified and experienced engineers, Genus is committed to develop innovative and customized solution at an affordable price. Our top-notch R&D Center, recognised by the Ministry of Science and Technology, Govt. of India, has enabled the company to dominate the power infrastructure and be at the forefront of new technology.
For more information, please visit http://genuspower.com/