Follow-on Orders from India and UK SMIP
CyanConnode Holdings plc
("CyanConnode" or the "Company")
Follow-on Orders from India and UK Smart Metering Implementation Programme
CyanConnode Holdings plc (AIM: CYAN), a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, is pleased to announce that it has received follow-on orders from Genus Power Infrastructures Ltd ("Genus"), a leading Indian based smart metering and power infrastructure company and Toshiba Information Systems (UK) Ltd ("Toshiba") for its RF mesh technology which offers highly reliable, low power and cost-effective M2M data communication for smart meters.
Follow-on Indian Order
A follow-on Indian order from Genus has been received for a further 4,050 smart metering units for the deployment at Uttar Gujarat Vij Company Ltd ("UGVCL"). The Company expects to recognise revenues for this contract win in H2 2019.
An initial order of 23,000 smart meters was placed by UGVCL in July 2017 and was the first order from India for an IPv6-6LoWPAN based technology, which was developed by Connode AB in Sweden prior to its acquisition by CyanConnode. The IPv6-based solution supplied to UGVCL was an early version of the standards-based Omnimesh Advanced Metering Infrastructure (AMI) platform, the full of which was formally launched in June 2018.
The UGVCL project was inaugurated on 27 February 2019 by The Energy Minister of Gujarat, Shri Saurabh Bhai Patel. Notably, the project is meeting or exceeding all service level standards, in accordance with Central Electricity Authority of India guidelines. The first phase of the project has seen significant improvement to back office functions and major reduction of Aggregate Technical & Commercial, (AT&C), losses.
Follow-on UK Smart Metering Implementation Programme (SMIP) Order
CyanConnode has received a follow-on order from Toshiba worth approximately £213,000, for service enhancements relating to the UK Smart Metering Implementation Programme, (SMIP), which it expects to recognise as revenue in H2 2019.
Toshiba has a contract with Telefónica which is providing communications to the Data Communications Company, (DCC), in the Central and Southern regions of the UK, where approximately 24m SMETS2 meters will communicate with the DCC, using 2/3G cellular communications hubs.
Where 2/3G cellular signal is unavailable, (known as not-spots), a dual communications hub is installed on the SMETS2 meter. The dual communications hub has CyanConnode's RF mesh technology embedded alongside the 2/3G cellular technology and automatically forms a RF mesh. Typically, where a dual communications hub is installed, up to approximately a further four dual communications hubs are required to form a local RF mesh. CyanConnode reconfirms that it believes that 10% (2.4m) of SMETS2 meters, will be fitted with the Toshiba dual communications hub and that its contract with Toshiba will ultimately deliver a total of approximately £25.7m of revenue.
Installation of SMETS2 meters commenced just over a year ago and the DCC confirms that over 1.3m meters are now connected to its network. (1)
John Cronin, CyanConnode Executive Chairman, commented:
"We are pleased to announce follow-on orders for existing projects which will deliver revenue in 2019. The additional units for the deployment at UGVCL further demonstrate the suitability of Omnimesh for the Indian market, which continues to present a vast opportunity for growth for CyanConnode. In June 2019 Bloomberg reported that "India is considering a plan to install smart meters in every home and business as part of its ongoing effort to turn around the country's ailing power sector, according to officials with knowledge of the situation." (1). Following this report and Narendra Modi's re-election as India's Prime Minister, we expect to see renewed activity of the Smart Meters National Programme in H2 2019, resulting in further significant orders for the Omnimesh AMI platform.
"Solid progress is also being made on the roll-out of SMETS2 meters, and we look forward to giving further updates on global sales of our innovative smart metering solutions as the year unfolds."
Sources:
2 https://www.bloomberg.com/news/articles/2019-06-27/india-considers-mass-rollout-of-smart-meters-to-revive-utilities
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 9512
Felicity Winkles / Sarah 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
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