Cyan earns extra $3.9m from Bangladesh deal
Cambridge UK CleanTech business CyanConnode has clinched a $3.9 million bonus from an extended contract in Bangladesh.
A global player in narrowband radio mesh networks, the company says a $5.4m order from a specialist in energy management systems for a smart metering contract in Bangladesh has now been increased to $9.3m.
The order for CyanConnode's Advanced Metering Infrastructure (AMI) solution has been increased from 150,000 units to 250,000 units to meet the increased requirements of the geographic territory in Bangladesh that has been awarded to the energy management systems company based in the Ukraine.
The energy management system company, which manufactures around 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 12-18 months.
CyanConnode will also provide head end server software, which will be hosted by the energy management system company, with annual software licence income recognised over a 10-year contractual period following successful smart meter implementation.
The recurring revenue software licences and annual maintenance contract, which represents approximately 50 per cent of the revised purchase order value, will be paid annually and charged on a per meter per year basis. This increased order from the Ukrainian company for utility customers in Bangladesh demonstrates the success of the CyanConnode's scalable business model.
The order size and revenue visibility provided by the 10-year contract further reflects the company's leading position within the smart metering industry across both emerging markets and Europe.
The 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 consumer base of four million customers, which provides the potential for further substantive orders.
John Cronin, CyanConnode executive chairman, said: “CyanConnode provides world class support to its partners, enabling them to integrate and deploy its narrowband mesh network technology. Through the transfer of skills this collaborative approach facilitates customer ownership and develops customer loyalty, which is demonstrated by this substantial order.”
• PHOTOGRAPH SHOWS: John Cronin