CyanConnode receives $29m purchase order from Ukraine's NIK
Cyanconnode Holdings
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16:55 25/04/24
Narrowband radio mesh network specialist CyanConnode has received a purchase order worth $29m from its strategic partner NIK, it announced on Wednesday, for a smart metering contract in Ukraine.
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The AIM-traded company said the purchase order was “significantly larger” than any received to date, and marked a “further step change” in the company's commercial progress.
As a result of the new contract, the order book - representing the value of purchase orders received but not yet delivered - would be $100m, which included $33m of expected software licence and support revenue from the UK smart metering contract.
The purchase order is for the supply of CyanConnode's hardware and software “advanced metering infrastructure” solution for a one million unit smart metering deployment to be delivered over the next three years, the board explained.
CyanConnode would receive $13m for the provision of hardware with the majority of deliveries expected to be weighted towards years two and three.
Once each meter has been installed and is operational, the head end server software licence payments - to be made on a per meter per year basis - would commence.
The HES payments would be made over the 10-year period post installation, and would be worth $16m, providing the company with a recurring revenue stream.
“We are pleased to announce such a significant order from our partner, in a new geographic region,” said CyanConnode executive chairman John Cronin.
“This latest contract win further demonstrates the suitability of CyanConnode's award-winning technology for smart metering implementations and the scalability of its collaborative business model.”
Cronin said NIK had the “skills and experience” to deliver integrated smart metering deployments in Eastern Europe as well as other markets including Russia and South Asia.
“We look forward to working with NIK to implement existing contracts as well as win new opportunities.”
Sergiy Bokoch, chief executive officer of NIK, said that as a “leading smart grid solution provider”, the company was seeing more opportunities for narrowband RF mesh networks as the technology offered “resilient, feature-rich and cost-effective” solutions.
“NIK selected CyanConnode, to replace its existing ZigBee solution, based on the performance, reliability and the total cost of ownership of CyanConnode's technology.
“Furthermore, being part of CyanConnode's partner eco-system provides NIK with world class support for the integration and deployment of narrowband networks.”