Business
New $5.4 million Purchase Order in Bangladesh
New $5.4 million Purchase Order in Bangladesh.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 3868W CyanConnode Holdings PLC 09 February 2017 \n\nCyanConnode Holdings plc\n(\"CyanConnode\" or the \"Company\")\n \n$5.4 million purchase order for smart metering in Bangladesh\n \nCyanConnode, the world leader in narrowband radio mesh networks, announces receipt of a purchase order from a specialist in energy management systems for a smart metering contract in Bangladesh, South Asia.\n \nThis is the Company's first order for a utility customer in Bangladesh and is a further demonstration of the Company's growing geographical sales footprint. Furthermore, the order size and revenue visibility provided by the long-term nature of this order reflects the Company's leading position within the smart metering industry in both emerging markets and also in Europe, where the importance of being able to accurately and remotely record data around energy consumption and appropriate billing is uniform.\n \nThe $5.4 million purchase order is for the supply of CyanConnode's Advanced Metering Infrastructure solution for a 150,000 unit smart metering deployment. The energy management system company, based in Eastern Europe, will integrate CyanConnode's hardware with its smart meters and shipment to their production facility will take place over the next 12-18 months.\n \nCyanConnode will also provide its Head End Server Software, which will be hosted by the energy management systems customer, 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 represent 50% of the total purchase order value, will be paid annually in advance and charged on a per meter per year basis.\n \nThe Eastern European 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 substantive follow-on orders. The overall number of electricity consumers in Bangladesh is ~58 million. Bangladesh is among four South Asian countries that are struggling due to increasing pressure from rising electricity demand, failure to collect revenue and poor reliability, according ...