Heavy loss outweighs $3.2m India deal as CyanConnode stock slides
A new $3.2 million order from India failed to stop CyanConnode’s UK share price falling more than 18 per cent soon after the start of trading as it also announced an operating loss of more than £11m for the year to December 31.
Executive chairman John Cronin emphasised the strength of the technology company’s order book which increased over the year as a raft of new customers opened up fresh territories.
CyanConnode claims a world lead in narrowband radio mesh networks. It posted lower 12-month revenues of £1.17m (2016: £1.82m) – the decrease a direct result of a previously notified deployment delay by a large contracted customer.
The operating loss for the business was £11.15m (2016: £7.94m) but the company ended the year with cash and equivalents of £5.39m (2016: £3.89m) thanks to a new equity fundraise of £11.3m before expenses. CyanConnode’s R & D tax credit haul doubled to £1.4m (2016: £0.7m).
The new $3.2m contract in India has been won from Larsen & Toubro. It is the largest order to date for the company’s IPv6-based smart metering solution in India.
John Cronin said: “This was an important period for the company with the successful integration of the IPv6 technology from the Connode acquisition, announced in June 2016, the expanded geographic footprint and scale of orders won during the period.
“In total we announced more than $50m of orders during the period, highlighting the strength of our value proposition within the smart metering markets around the world.
“Integration work is currently being undertaken with partners in three new territories with initial payments now received from these territories. In addition we have had successful demonstrations of our technology in a number of new locations.
“The nature of our business model has led to a significant committed pipeline of future revenues as we commence delivery on a number of high value contracts and, as such, the key objective remains focused on converting orders into revenue and profits as our business model evolves towards a cash generative one that can support and accelerate our ongoing corporate development.”