Cyanconnode Share Discussion Threads

[cpap man] 06/6/2016 08:05

John Cronin, Executive Chairman of Cyan, commented:



"The last financial year has really demonstrated the value of the investment and momentum that was built in 2014, as our addressable markets continue to grow in terms of global reach and absolute size. We have not only strengthened existing relationships but have established new commercial partners, in new and existing territories. Recent orders further highlighted the scalability of our business model, with the Iran contract being ten times the size of the previous largest order.



"In addition, we continue to develop our name in the industry with the Company winning a number of prestigious awards, including being named winner of the Innovation of the Year Award. This is extremely important in providing the recognition that we feel our products deserve and to increase market demand for our product suite. We look forward to the coming year with confidence and expect to deliver further operational and financial progress."

[multibagger] 06/6/2016 07:44

From RNS today

..."As announced on 24 May 2016, the Board is considering its financing options to raise additional funding to be used for a potential acquisition and for working capital purposes, although the terms of any potential financing are yet to be agreed"

Overall, strong and positive RNS. Massive R&D increase by 70% - wonder if this is for all the PoC or pilots for prospective customers ? I get the feeling that the acquisition is about a month or two off. I liked the strategic outlook (with caveats as expected).

[tightfist] 30/5/2016 12:35

Hi MB,

Interesting to see your thoughts. (Unless the acquisition represents a change in direction) my understanding is that they don't want to be in the hardware business (certainly not meters!, probably not chips in the medium term which I believe are currently sourced from two fabricators in Indian EOU's) and licensing is the stated way ahead. So I want to see the acquisition reinforcing/expediting a licensing distribution model, or broadening their IP and building moats.

We certainly need a big consolidation (1:500?) to gain respectability.

Cheers, tightfist

[multibagger] 28/5/2016 10:09

I am personally thinking that this acquisition and funding RNS may take yet another fortnight or so.

I'm not too keen on CYAN trying to develop the hardware side of things - hardware margins are generally abysmal, equipment gets commoditised, prices keep dropping and there is a forex element that can make margins volatile - let alone the infrastructure and logisitics of supply chain in the developing world. Better leave it to people who are very experienced in that area.

I would think that our best returns on our investment will come from sticking to developing and maintaining an IP / technology edge, developing software and utilisation protocols/interoperability gateways /revenue platforms and identifying new areas where our tech can be adapted / allow other "last mile" tech requirements piggy back onto our chips.

My guess is that is our acquisition is a company that is based abroad - involved in chip design/communication software or a strategically positioned player in an important geogrpahic market. I am not persuaded by the speculation around whether it is Antenova.

Good luck all :)

[lwaxf13] 28/5/2016 07:39

Cyan presenting at another conference!!! What will the story be for potential share holders this time? Surely it can't be "judge our team of industry big hitters on the track record at Cyan." Should be "See how we have driven the share price into the ground with relentless dilution to keep the company afloat. Share holder value? What's that?"

I might get myself into London for the presentation and ask when the strategy will change to put shareholders first. If they are not taking questions in public I could rock up with my question on a placard.

Will there be enough zeros in any computer in the world to record the number of Cyan shares after the £12.5M round of dilution? :-)

On a more serious note I am interested to hear what's in it for shareholders by raising £12.5M. Based on track record will there be anything in it?!!

[multibagger] 28/5/2016 07:10

As the saying goes "coming events cast their shadow before"....the number of jobs being advertised strongly indicates that there is a step change in the prospects and pipeline. It is not surprising that we require a number of staff in India given its size (I read some where that it is as big as Europe) and population. It appears that the current PM is keen on dealing with some fundamental issues (power, sanitation, water) on a mega scale.

With a increasing presence in India and to a lesser degree in China we have a toe hold in markets which account for not far off a third of the world's population. My slight concern is will be able to scale up at the speed that is required to implement all the work that we get ? Will we be able to train up staff of local partners quickly enough ? Is there adequate capacity for the hardware fabrication / supply side of things ? These issues and information from the company in their presentations leads me to believe that we will move sooner to a software supplier model / IP royalty model quicker than we expect. This will allow us to scale up at much greater speed, with the logistics being done by a big local partner with deep pockets such as L&T or Tata in India. So we will be the IP brains in joint ventures with local partners bringing in the financial and implementation muscle.

If we are raising £12.5m at the rumoured price, then we are looking at adding a little under 6b shares. In total in the region of 13b shares ....which does not mean much in itself, as market cap is what matters in the stock market, but nevertheless a turn off and a barrier to more serious interest from financial institutions. Time for consolidation I would think and it may need an EGM to vote on the capital restructuring.

We are at a very exciting and transformational stage for the company...any one attending the Capital Conference in London 0n 16th June where we are presenting ?

[nilli] 27/5/2016 08:19

I suspect the placing should be done by Tuesday the latest. Once the dust has settled I think we should see some recovery.
GLA

[andy] 26/5/2016 20:19

LOL!


I doubt he know me, although I have met him on a couple of occasions.

[cpap man] 26/5/2016 20:05

LOL he quite likes you too Andy!

[andy] 26/5/2016 19:25

cpap man,

Reading what Tom as posted about his exchange with Paul last night, Paul has made himself look silly, and not for the first time late evening.

I like Paul, but he needs to stay away from the keyboard late evenings, IMO.

[cpap man] 26/5/2016 10:25

And rumours about ADVFN....

[tightfist] 25/5/2016 14:23

Interesting price action! Has someone decided the shareholders are getting weary and possibly going to launch an opportunistic low-ball bid for Cyan's IP and initial market entry positions? (And avoid a potentially troublesome acquisition….)

[cpap man] 25/5/2016 14:07

Interesting stuff from Paul Scott to which I totally agree!

That is what they do in Australia and it works very well over there!

[major courtenay] 24/5/2016 21:31

I'd hesitate to make such grand assertions unless I was happy to back them up. FWIW, I'd be amazed if TRT was the target. I see no compelling synergy between SAW and cyan tech; but more importantly, the holders at TRT would sooner shoot their grannies than let the company go for a song, Lobbey included. MC. Edit - but feel free to point out my strategic oversight.

[multibagger] 24/5/2016 21:09

Care to explain please Mattjos ? What is the complementary technology and who is the significant shareholder in both CYAN and TRT ? TIA

[mattjos] 24/5/2016 20:57

If it's Transense, 50% of the buy is in the cash so just a few mill for the tech. Could be a collusus in the making ... Or the marriage of two donkeys. I suspect the former

[stav5001] 24/5/2016 20:43

At our share price, (never mind at a discount) that is one hell of a dilution, do the maths.

[mattjos] 24/5/2016 20:34

I would not be at all surprised if it were Transense ... Given the commonality of one significant shareholder & the complimentary technology

[spike_1] 24/5/2016 20:32

I'm going to guess a software company with complimentary expertise, and quite possibly an easily adaptable platform for bill payments or similar.If so it could either be the U.K. or India.

Best wishes - Mike