CyanConnode goes from strength to strength

Operational highlights

• Revenues of £1.8m versus £0.3m in the prior year
• Delivery well advanced against two contracts to Enzen Global Solutions Pvt Ltd (“Enzen”) in India
• Successful acquisition and integration of Connode Holding AB (“Connode”)
• Addition of full standards-based technology platform
• UK smart metering contract with expected revenues of £25m in place
• Expansion of the Company’s geographic reach
• Largest contract win to date worth £10m in Iran
• Over 50% of the total contract value consists of recurring software license revenue
• Initial deliveries expected in 2H2017
• Two additional smart metering orders from Larsen & Toubro (“L&T”) in India
• A total of 14,700 units have now been ordered by L&T
• Operational reach expanded in Europe and the Far East
• Including an order from E.ON and a follow on order from Landis+Gyr
• Distribution agreement with JST Group in Thailand
• New equity funding of £12.8m
• £10.1m (gross) completed in July 2016, including funding to acquire Connode
• £2.3m (gross) completed in Oct/Nov 2016 to fund further growth

Financial highlights

Post year end highlights

• $5.4m purchase order in Bangladesh
• Half the order is hardware/services to be delivered over the next 12 months
• Half the order is recurring software license revenue with ten year contract term
• Contract win with HM Power Sweden for the supply of 100,000 software licenses
• Contract win with Innologix India for the supply of $150,000 of software licenses
• Memorandum of Understanding (“MoU”) signed with Tech Mahindra India
• New equity funding of £3.2m (gross) completed in April 2017
• R&D tax credit cash refund claim of £0.7m (2015: £0.6m) submitted
• Pete Hutton (ex-ARM senior executive) appointed to the Board

John Cronin, Executive Chairman of CyanConnode, commented:“We are delighted to have achieved significant financial and operational milestones during the period. We won our largest contract to date and completed the successful acquisition and integration of Connode.

“Our narrowband mesh networks are ideally suited to machine-to-machine communication where mobile networks cannot effectively operate. This capability means the Company’s combination of hardware and software turnkey solutions continue to gain worldwide market recognition.

“We shall continue to strengthen relationships with existing customers and pursue with vigour new clients and further alliances with influential channel partners. Our ability to deliver real world energy and operating efficiencies underpins our confidence that 2017 will be another transformational year for the Company.

“The current year has already started strongly with a $5.4m purchase order for a utility customer in Bangladesh. Furthermore, we have several exciting near-term opportunities in place and a strong order pipeline, including follow-on orders from existing customers. We are delighted to have successfully evolved our business model and product range, with growing recurring software licence sales set to underpin further strong growth as we continue to drive towards profitability.”

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). This inside information is now considered to be in the public domain.

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