Business
New $10M Purchase Order Extension in Bangladesh
New $10M Purchase Order Extension in Bangladesh.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 9658N CyanConnode Holdings PLC 15 August 2017 \n\nCyanConnode Holdings plc\n(\"CyanConnode\" or the \"Company\")\n \nNew $10M Purchase Order Extension in Bangladesh\n \nCyanConnode, the world leader in narrowband radio mesh networks, announces receipt of a $10 million purchase order extension from its specialist in energy management systems customer for a smart metering contract in Bangladesh, South Asia.\n \nThis new order more than doubles the accumulated orders from the customer to date to $19 million, with the initial order already having been extended from $5 to $9 million in June 2017. This latest extension for CyanConnode's Advanced Metering Infrastructure (\"AMI\") solution is for an additional 300,000 units, bringing the total order size to date to 550,000 units.\n \n As a result, the order book, representing the value of purchase orders received but not yet delivered, has grown significantly from £13 million at the beginning of the calendar year to £28 million today, which is in addition to the expected £25 million of software licence and support fees from the UK smart metering contract.\n \nStrengthened Relationship\nThis latest extension will enable the customer 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 approximately 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 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 55% of the purchase order value, will be paid annually and charged on a per meter per year basis.\n \nGrowing Levels of Demand\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 cons...