CyanConnode (CYAN) , a global provider of narrowband radio frequency smart mesh networks, announced a large order from Montecarlo Limited for one million Omnimesh RF modules. The order also includes CyanConnode's supplemental products and services - Advanced Metering Infrastructure (AMI), Standards-Based Hardware, Omnimesh headend software, a perpetual license, and an annual maintenance contract.
The order is for a smart metering deployment in Nagpur, Maharashtra, India. The supply of the Omnimesh modules is expected to commence within the quarter, with installation scheduled to be completed within 27 months. This will be followed by a 93-month support and maintenance contract. Approximately 60% of the contract will be paid during the installation phase, with the remaining 40% to be paid in equal monthly instalments over the remaining 93 months.
"We are extremely pleased to continue our partnership with CyanConnode, building on our previous successful and ongoing collaboration in Madhya Pradesh. Our strong background in project implementation, coupled with CyanConnode's proven track record in smart metering communications infrastructure in India, instils confidence in the successful implementation of this project. I believe that our combined strengths will pave the way for further such opportunities and partnerships." commented Mrunal Patel, Joint MD of Montecarlo.
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CyanConnode scores another large order from Montecarlo, building on an initial deal signed between the 2 companies a year ago for a similar volume of Omnimesh modules. The repeat contract is a testament to the quality of CYAN's technology and momentum within the rapidly growing Indian smart metering market. The order significantly boosts CYAN's total Indian orderbook to 6.3 million units, with 3.9 million scheduled for delivery within established project timelines.
Investors welcomed the news, sending CYAN shares 16% higher on Thursday.
The Indian smart metering market continues to gather momentum, with current tenders for more than 220 million smart meters sanctioned to the end of November 2023, and almost 100 million awarded to prime bidders, typically Advanced Metering Infrastructure Service Providers (AMISPs). CyanConnode continues to gain market share in the country, having won orders for 5 million Omnimesh RF modules within the past 18 months. This earned CyanConnode India the recognition of the second fastest-growing UK company in India by the BMI 2023 report.
In 1H24, CyanConnode quadrupled revenues to £5.8m and doubled gross profit to £1.8m in line with expectations. Revenues for FY24 ending March 31, 2024 are also forecast to meet market expectations. CyanConnode's market share of installed smart metering base in India is now c. 25%, with a win ratio in the country in terms of tenders to date of 40% and 25% in terms of volumes. Orders continue to be won in other territories too, including a recently announced deal in the MENA region. The company remains well-funded following a £2.7m fundraise in November, plus issued warrants which would provide a further £4.1m if fully exercised.
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