Business
$29m purchase order for smart metering in Ukraine
$29m purchase order for smart metering in Ukraine.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 2113R CyanConnode Holdings PLC 20 September 2017 \n\nCyanConnode Holdings plc\n(\"CyanConnode\" or the \"Company\")\n \n$29 million purchase order for smart metering in Ukraine\n \nLargest Order to Date Successfully Expanding Geographic Reach\n \nCyanConnode, the world leader in narrowband radio mesh networks, has received a purchase order worth $29 million from its strategic partner NIK LLC (\"NIK\") for a smart metering contract in Ukraine.\n \nThe purchase order is significantly larger than any received to date by CyanConnode and marks a further step change in the Company's commercial progress.\n \nAs a result of this new contract, the order book, representing the value of purchase orders received but not yet delivered, will be $100 million, which includes $33million of expected software licence and support revenue from the UK smart metering contract.\n \nPurchase Order\nThe purchase order is for the supply of CyanConnode's hardware and software advanced metering infrastructure solution for a 1 million unit smart metering deployment to be delivered over the next three years. \n \nCyanConnode will receive $13 million for the provision of hardware with the majority of deliveries expected to be weighted towards years two and three. \n \nOnce each meter has been installed and is operational, the Head End Server software (\"HES\") licence payments (to be made on a per meter per year basis) will commence. The HES payments will be made over the 10-year period post installation and will be worth $16 million, providing the company with a recurring revenue stream. \n \nNIK, an energy management system company based in Ukraine, currently manufactures circa. 1.5 million utility meters per year and will integrate CyanConnode's hardware with its meters at their production facility. The NIK smart meters, enabled by CyanConnode's narrowband radio mesh network technology, will be part of NIK's 'smart meter' product offering and will replace their existing ZigBee-based smart meter offering.\n \nThis is the Company's first order from NIK for a utility customer in Eastern Europe, and the order size and revenue visibility provided by this contract reflects the Company's ability to win and service large scale contracts providing increasing levels of high ma...