Business Weekly - Cambridge, UK

The initial production order of 10k eCOG1K chips, used in a special pay-phone which will be installed in factories throughout China, will be delivered monthly and give a production ramp to the firm, commencing in September.

The payphones, which will provide a range of extended features to factory workers including clocking in and out, will be installed in three Chinese provinces at first, stretching to six.

CEO Kenn Lamb said: “Although initial order quantities are modest compared to the market opportunity as understood by Cyan's management, we are encouraged by this first production order following successful field trials and are working with our customer on the development of next generation pay-phone systems.” Financial details of the deal were not disclosed.

Cyan said that the fall in its share price, which peaked at 22p in January, is more representative of a “development-stage company that has yet, for instance, to complete working silicon.”

It said that it expects that this and future announcements will “demonstrate the progress that the Company is making,” making a better representation of a firm which “has a new microcontroller family being actively marketed and an existing product which has achieved revenues.”

Shares in Cyan have made a significant shift in that direction, gaining over ten per cent, or 1p to 10.75p.