CyanConnode (CYAN) , a global provider of narrowband radio frequency smart mesh networks, announced a large order for 500,000 of its Omnimesh modules from IntelliSmart Infrastructure. The order also includes CyanConnode's supplmental products and services - Advanced Metering Infrastructure (AMI), Standards-Based Hardware, Omnimesh headend software, a perpetual license, and an annual maintenance contract.
The order will support a smart metering deployment for a project by Power Grid Corporation of India for Madhya Gujarat Vij, a utility located in Gujarat, India. CyanConnode will begin supplying the modules in Q3 2024, with deployment expected to take 27 months under a DBFOOT (design, build, finance, own, operate, transfer) model. A support and maintenance contract will then be in effect for a period of 7.5 years.
This is the third order received under a strategic framework agreement for 3 million modules, signed in February 2023. Earlier in the month, CyanConnode received an order for 300,000 units under the same framework. So far under the agreement, 1.4 million modules have been ordered.
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Another large order for CyanConnode's Omnimesh modules from IntelliSmart, validating CyanConnode's technology and strategy for India's growing and rapidly modernising energy market. With this order, CyanConnode's orderbook for India reaches 5 million modules, of which 1.9 million will be delivered by Q1 2024, and the rest per project timelines.
CyanConnode is also a competitive force globally with a broad portfolio of more than 2.7 million global deployments across more than 20 customers. CyanConnode's technology is positioned at the forefront of the new "smart cities" transformation whereby IoT (Internet of Things) is remodelling urban landscapes with machine-to-machine RF communication. This enables cost and energy savings, allowing governments and businesses to monitor and manage infrastructure and utility services with much greater efficiency.
On projected forecasts, broker Zeus said "Strong revenue growth is expected to be leveraged into rapidly rising adjusted EBITDA to £0.4m in FY24 and £5.3m in FY25 (16% margin). Based on our forecasts, the shares trade at only 6x FY25 EBITDA. We believe this does not reflect the size of the Indian opportunity for 250m smart meters."
CYAN shares jumped 6.45% on today's announcement.
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