Business
£10 million purchase order
£10 million purchase order.
About this update from Cyanconnode Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 2774U Cyan Holdings Plc 06 April 2016 \n\n \nCyan Holdings plc(\"Cyan\" or the \"Company\")\n \n £10 million purchase order for smart metering from Micromodje Iran\n \nCyan Receives Largest Order to Date Successfully Expanding Geographic Reach\n \nCyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, is pleased to announce that further to the announcement of 9 February 2016 in relation to an initial purchase order, and after an initial period of live demonstration, it has now received a purchase order from telecommunications contractor Micromodje worth approximately £10 million for a 360,000 unit smart electricity metering implementation in the Islamic Republic of Iran.\n \nThe purchase order is significantly larger than any purchase order received to date by Cyan and marks a step change in the Company's commercial progress.\n \nThis £10 million purchase order is for the supply of both Cyan's CyLec Advanced Metering Infrastructure hardware solution and its proprietary Head-End Software (\"HES\"). The 360,000 units will be installed for high value, high demand customers that represent an estimated 25% of total national power consumption of Iran1.\n \nHardware shipments are expected to commence towards the end of the current financial year following the integration with a locally manufactured smart meter. Hardware revenue will be recognised as delivered to Micromodje, with the 360,000 smart meters expected to be rolled out over a two year period. Cyan's proprietary HES will be hosted by its partner Micromodje with annual software license income being recognised over a five year contractual period following successful smart meter installation. As over 50% of the total order value consists of software license income, the recurring revenues from this purchase order will continue well beyond the two year hardware installation period. The software licenses will be paid annually in advance and charged on a per meter per year basis.\n \nNew and Significant Market Opportunity\nInternational sanctions on Iran were lifted on 16 January 2016 and this is believed to be one of the first substantial purchase orders secured by a UK business, with support from the sp...