£10 million purchase order
Cyan Holdings plc
("Cyan" or the "Company")
£10 million purchase order for smart metering from Micromodje Iran
Cyan Receives Largest Order to Date Successfully Expanding Geographic Reach
Cyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, is pleased to announce that further to the announcement of 9 February 2016 in relation to an initial purchase order, and after an initial period of live demonstration, it has now received a purchase order from telecommunications contractor Micromodje worth approximately £10 million for a 360,000 unit smart electricity metering implementation in the Islamic Republic of Iran.
The purchase order is significantly larger than any purchase order received to date by Cyan and marks a step change in the Company's commercial progress.
This £10 million purchase order is for the supply of both Cyan's CyLec Advanced Metering Infrastructure hardware solution and its proprietary Head-End Software ("HES"). The 360,000 units will be installed for high value, high demand customers that represent an estimated 25% of total national power consumption of Iran1.
Hardware shipments are expected to commence towards the end of the current financial year following the integration with a locally manufactured smart meter. Hardware revenue will be recognised as delivered to Micromodje, with the 360,000 smart meters expected to be rolled out over a two year period. Cyan's proprietary HES will be hosted by its partner Micromodje with annual software license income being recognised over a five year contractual period following successful smart meter installation. As over 50% of the total order value consists of software license income, the recurring revenues from this purchase order will continue well beyond the two year hardware installation period. The software licenses will be paid annually in advance and charged on a per meter per year basis.
New and Significant Market Opportunity
International sanctions on Iran were lifted on 16 January 2016 and this is believed to be one of the first substantial purchase orders secured by a UK business, with support from the specialist UK Trade and Investment team.
The National Smart Metering Program of Iran1 (FAHAM in Persian) has the stated goal to replace the electricity meters for all customers, representing approximately 33 million meters, in seven years with funding provided by the Iran Power Generation, Transmission and Distribution Management Company (TAVANIR). Cyan has started a dialogue with Micromodje on the next planned rollout of 1 million units, leading to the overall Iran market requirement of 33 million smart electricity meters.
John Cronin, Executive Chairman of Cyan, commented: "We are delighted to have secured this very significant order in Iran so quickly after our initial pilot deployment. This is a transformational point in Cyan's development. Not only is the order ten times larger any previous orders we have received, but this Iranian order also marks Cyan's entry into a new territory and demonstrates the compelling value of the Cyan solution for the Iranian market and emerging markets globally.
"The fact that we have secured such a substantial order so quickly after the pilot highlights just how far we have come operationally. Considering total orders received to date and our historic revenues, this is an extremely important milestone for the Company. We are delighted to have expanded our geographical footprint and to have provided a customer reference point from which we expect to establish further new relationships."
"The order from Micromodje shows its confidence in Cyan's enabling technology and we look forward to working with the highly experienced system integrator to deliver smart metering technology, enhancing the quality of service for energy utilities and customers in Iran."
Mr Goldouzian, Managing Director of Micromodje, commented: "During the pilot deployment of the Cyan solution for smart metering of street traffic cameras last month, we were able to quickly confirm the quality of its solutions as well as the support Cyan provide to local implementation partners. We will now commence the volume deployment phase knowing that we can can rely on Cyan's continued support to ensure the project is a success."
Sources:
1 http://www.iransg.com/saba_content/media/image/2015/10/7873_orig.pdf
Enquiries:
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Cyan Holdings plc |
Tel: +44 (0) 1954 234 400 |
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John Cronin, Executive Chairman |
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Cantor Fitzgerald Europe - Nomad and Broker Andrew Craig / Richard Salmond |
Tel: +44 (0)207 894 7000 |
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Beaufort Securities Limited - Joint Broker |
Tel: +44 (0) 207 382 8300 |
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Jon Belliss |
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Walbrook PR - Financial PR |
Tel: +44(0) 20 7933 8780 |
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Paul Cornelius / Nick Rome |
About Cyan
Cyan provides a communication platform for energy, lighting and emerging applications in the wider 'Internet of Things' network. Its integrated platform and partner collaborations deliver end-to-end solutions that connect millions of devices and support bidirectional communication with the end customer. Cyan's smart metering and lighting solutions enhance quality of service in emerging regions, through power savings, lower operating costs and increased cost efficiency. Our vision to create improved value through Smart City solutions has provided our customers with the foundation upon which to build incremental services as these markets evolve.
For more information, please visit www.cyantechnology.com.
About CyLec®
CyLec® is a complete control and communication network for electricity metering. CyLec® uses wireless technology to enable the collection and delivery of data from and to a meter, such as energy profiles, instant readings and the sending of tariff updates. Priority data can also be sent back to the utilities such as information regarding tampering enabling the utility to take action immediately.
About Micromodje
Micromodje was established in 1991 and has grown at a spectacular rate to become a leading manufacturer and supplier of various types of telecom equipment and services in Iran. It started with the design and production of RF equipment and over the years Micromodje has shifted its activities towards the implementation of turn-key projects working as a general contractor and has successfully executed a number of projects such as the telecommunication system of Imam Khomeini New International Airport.
With a turnover of approximately US$45 million, Micromodje has been recognised as a Grade 1 General Contractor for the production, implementation and commissioning of turn-key telecommunication projects. Recently, one of the companies established by Micromodje (having 40% of its share) was awarded projects of approximately US$320 million as part of the expansion of mobile network in Iran.
Micromodje is a system integrator with a wealth of experience in delivering solutions for government contracts and has recently been expanding its core capabilities to include the emergent Internet of Things ("IoT") connectivity markets. It will act as a distribution agent of Cyan's smart metering hardware and software in Iran, whilst providing a complete turn-key service for the fulfilment of the deployments.
For more information, please visit http://micromodje.com/index.htm
Regulatory Confirmation Received for Iran
Micromodje has obtained import licenses from various Government institutions and Cyan has obtained regulatory approvals to enable Cyan's CyLec smart metering solutions to be exported to, and deployed in, Iran. As part of the initial project setup, Cyan has sought specialist legal advice on entering the Iranian market in order to ensure full compliance with all appropriate international regulations. Following 'Implementation Day' on 16 January 2016 where the International Atomic Energy Agency agreed that Iran has fulfilled its side of last year's landmark nuclear deal, the United States, European Union and United Nations have agreed to the lifting of economic sanctions against Iran.
This information is provided by RNS
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