Business
Contract Award Extension
Contract Award Extension.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 1177I CyanConnode Holdings PLC 15 June 2017 \n\nCyanConnode Holdings plc\n(\"CyanConnode\" or the \"Company\")\n \nContract Award Extension\n \nPurchase order increase from $5.4 million to $9.3 million for smart metering contract in Bangladesh\n \nCyanConnode, the world leader in narrowband radio mesh networks, announces that the $5.4 million purchase order from a specialist in energy management systems for a smart metering contract in Bangladesh, South Asia announced on 9 February 2017 has now been increased to $9.3 million.\n \nThe order for CyanConnode's Advanced Metering Infrastructure (\"AMI\") solution has been increased from 150,000 units to 250,000 units to meet the increased requirements of the geographic territory in Bangladesh that has been awarded to the energy management systems company based in Eastern Europe. The energy management system company, which manufactures circa. 1.5 million utility meters per year, will integrate CyanConnode's hardware with its meters and shipment to their production facility will take place over the next 12-18 months.\n \nCyanConnode will also provide Head End Server Software, which will be hosted by the energy management system company, with annual software licence income being recognised over a ten-year contractual period following successful smart meter implementation. The recurring revenue software licences and annual maintenance contract, which represents approximately 50% of the revised purchase order value, will be paid annually and charged on a per meter per year basis.\n \nThis increased order from the Ukrainian company for utility customers in Bangladesh demonstrates the success of the company's scalable business model. Furthermore, the order size and revenue visibility provided by this 10-year contract reflects the Company's leading position within the smart metering industry across both emerging markets and Europe.\n \nThe energy management system company has formed a local entity, a new utility that has entered a long-term agreement with the Bangladeshi Government to provide electricity to consumers. The new utility has a consumer base of four million customers, which provides the potential for further substantive orders. The overall number of electricity consumers in Bangladesh is ~58 million. Bangladesh is a...