Cyanconnode Share Discussion Threads

[escapetohome] 04/1/2018 08:06

Been keeping an eye on this one, glad i didnt commit.

[gozo] 04/1/2018 08:04

Chart downtrend firmly re established after this announcement

[cpap man] 04/1/2018 08:00

Good morning multibagger - just noticed your post ref: TARGET SHARE PRICE for CYAN

Found it some where on social media [can not remember where?] but perhaps if you are indeed correct it was a typo?

What do you make of todays RNS from CYAN?

[cpap man] 04/1/2018 07:35

CyanConnode Holdings plc

("CyanConnode" or the "Company")



Trading Update



CyanConnode (AIM:CYAN.L), the world leader in narrowband radio mesh networks today publishes a trading update for the year ending 31 December 2017.



Financial Highlights

During the course of the year, the Company has continued its positive momentum with significant orders from a range of customers across different jurisdictions.



At the end of the financial year, the Company had an order book of in excess of $100 million and an identifiable global pipeline of approximately $320 million, which the Board believes provides the Company with a strong platform to significantly grow the business.



The orders generated during 2017 represented a mixture of smaller orders, either as part of a wider roll out or as a pilot project, and larger orders, which built on previous order book in Iran and the United Kingdom.



However, the Company has been notified by a significant customer that deployment for one of these larger contracts has been delayed, owing to circumstances outside the Company's control, and that deployment is now expected to commence in the first half of 2018. This customer has reiterated that it remains committed to using CyanConnode for this project and additional projects in other jurisdictions. Therefore, given delivery is now expected to be made during 2018, hardware and service revenues relating to this project will now be recognised in the Company's current financial year. As a result of this delay, revenue for the 12-month period to 31 December 2017 will be significantly below market expectations at £1.2m.



Despite the investment in the hardware and services referred to above, the Company ended the year with more than £5.5 million of net cash, with further inflows of in excess of £1.3 million expected over the near-term from R&D tax credits and funds yet to be received from the issue ordinary shares as announced at the time of the fundraising in September 2017.



Outlook

The Company remains confident that the hardware element of its current order book will be fulfilled over the course of the next 18-24 months, with software being installed alongside. Further significant orders are also expected during 2018, including further roll outs in India and expansion into new territories. The continued positive momentum in the pipeline has been aided by re-alignment of key employees to create a world class team over the last 12 months, which has enabled the Company to develop and refine new and existing offerings, such as the launch of Omnimesh IPV6, which has led to a wider spread of meter manufacturers with which the Company engages. These include Genus and L&T from India and also various Chinese meter manufacturers.



This momentum is expected to accelerate as the Company continues to develop new products, such as communication technology for battery powered water and gas meters. During 2018, the Company also expects to benefit from the roll-out of the UK Smart Metering Implementation Programme.



As the smart metering industry is developing, different technologies such as GPRS are being trialled by utilities around the globe. CyanConnode believe that RF mesh is the best suited technology to the markets in which it is operating. A full discussion and comparison of these two technologies can be found at hxxp://cyanconnode.com/wp-content/uploads/2017/12/RF-Mesh-Vs-GPRS_USV2.pdf.



John Cronin, Executive Chairman, commented: "2017 was a year of significant operational progress for the Company, with the order book increasing to in excess of $100 million and new orders being received across multiple jurisdictions. Whilst we are disappointed that this large order for 2017 has been delayed into 2018, we believe that this is purely a timing issue and we expect 2018 to be a year of further significant progress and a marked increase in revenue generation. During the first half of 2018, the Company will concentrate on delivery of this order and the current order book, and conversion of the global pipeline totalling circa $320 million into contracts, aided by further developments to the Company's current offerings."

[cpap man] 04/1/2018 07:33

CyanConnode Holdings plc

("CyanConnode" or the "Company")



Trading Update



CyanConnode (AIM:CYAN.L), the world leader in narrowband radio mesh networks today publishes a trading update for the year ending 31 December 2017.



Financial Highlights

During the course of the year, the Company has continued its positive momentum with significant orders from a range of customers across different jurisdictions.



At the end of the financial year, the Company had an order book of in excess of $100 million and an identifiable global pipeline of approximately $320 million, which the Board believes provides the Company with a strong platform to significantly grow the business.



The orders generated during 2017 represented a mixture of smaller orders, either as part of a wider roll out or as a pilot project, and larger orders, which built on previous order book in Iran and the United Kingdom.



However, the Company has been notified by a significant customer that deployment for one of these larger contracts has been delayed, owing to circumstances outside the Company's control, and that deployment is now expected to commence in the first half of 2018. This customer has reiterated that it remains committed to using CyanConnode for this project and additional projects in other jurisdictions. Therefore, given delivery is now expected to be made during 2018, hardware and service revenues relating to this project will now be recognised in the Company's current financial year. As a result of this delay, revenue for the 12-month period to 31 December 2017 will be significantly below market expectations at £1.2m.



Despite the investment in the hardware and services referred to above, the Company ended the year with more than £5.5 million of net cash, with further inflows of in excess of £1.3 million expected over the near-term from R&D tax credits and funds yet to be received from the issue ordinary shares as announced at the time of the fundraising in September 2017.



Outlook

The Company remains confident that the hardware element of its current order book will be fulfilled over the course of the next 18-24 months, with software being installed alongside. Further significant orders are also expected during 2018, including further roll outs in India and expansion into new territories. The continued positive momentum in the pipeline has been aided by re-alignment of key employees to create a world class team over the last 12 months, which has enabled the Company to develop and refine new and existing offerings, such as the launch of Omnimesh IPV6, which has led to a wider spread of meter manufacturers with which the Company engages. These include Genus and L&T from India and also various Chinese meter manufacturers.



This momentum is expected to accelerate as the Company continues to develop new products, such as communication technology for battery powered water and gas meters. During 2018, the Company also expects to benefit from the roll-out of the UK Smart Metering Implementation Programme.



As the smart metering industry is developing, different technologies such as GPRS are being trialled by utilities around the globe. CyanConnode believe that RF mesh is the best suited technology to the markets in which it is operating. A full discussion and comparison of these two technologies can be found at hxxp://cyanconnode.com/wp-content/uploads/2017/12/RF-Mesh-Vs-GPRS_USV2.pdf.



John Cronin, Executive Chairman, commented: "2017 was a year of significant operational progress for the Company, with the order book increasing to in excess of $100 million and new orders being received across multiple jurisdictions. Whilst we are disappointed that this large order for 2017 has been delayed into 2018, we believe that this is purely a timing issue and we expect 2018 to be a year of further significant progress and a marked increase in revenue generation. During the first half of 2018, the Company will concentrate on delivery of this order and the current order book, and conversion of the global pipeline totalling circa $320 million into contracts, aided by further developments to the Company's current offerings."

[threadworm] 03/1/2018 10:20

as i said a while ago....whilst the business model is not yet proven it's a trading stock - you need to lock in profit when there and avoid the longer term exposure to dilution and delays. no one in the history of cyan have profited from being a lt holder. fact

[threadworm] 03/1/2018 10:13

agree lowering of options v.v.poorly managed...and a kick in the teeth to those who have sat through years of dilution

market reaction reminds me of thatcher:

"No. No. No."

[lwaxf13] 03/1/2018 10:01

It gets uglier by the day. When can we see some sackings at the top of cyan? Or do the board think they are all doing a sterling job? The remuneration committe might see fit for pay rises and more low bar options rewards at the world leading gravy train. Hang in their shareholders. Best thing since sliced bread. So funny :-(

[davep4] 03/1/2018 09:59

Rs. 864 Crore for the implementation of 5 Million Smart Meters,(approx $130m). Interesting that L&T are one of Cyan’s partners?!

[threadworm] 03/1/2018 09:26

..not sure what your point is davep4....?

thoughts are the above confirms cyan have missed out on that project...

cyan are not running gprs in the meter...

[realist1950] 02/1/2018 23:17

johnwall - I've watched CYAN since flotation.

The point is, CYAN need signifiant revenues and soon.

If not, you can sit back and watch the fundraisings and dilution start all over again.

I doubt their model relies exclusively on winning a proportion of the not-spot market, although I agree it's a selling point. In a fairly recent video, Harry Berry actually argued passionately (boasted?) why CYAN were not bidding in western markets.....before the company acquired connode and all of a sudden, hey presto, 'being green' in the west was suddenly the way to go. But even this most evolved / mature of smart metering markets, which in itself is still 'young', is facing some delays.

Simon Smith points to the 'recent' fundraising in September for some kind of reassurance (is he trying to reassure us or himself?), but with CYAN's historic cash burn rate and the cash hungry nature of tech companies, September really should now be seen as history; a distant memory. It's somewhat foolhardy for him to frame his surprise at the fall in share price given the 'recent' raising of that money. Does he not appreciate how quickly that will go. Perhaps this attitude belies a more than comfortable attitude in coming back to the market time and again. That's not good enough.

The fact that management choose to chip in with some of their own money from time to time should not be seen as any form of consolation or excuse. They should not be there to suffer with shareholders (nor should they have the temerity to point to this fact when things don't work) but instead they should be there to work on behalf of shareholders and deliver gains in return for what is, high risk investment.

Im sure you'd see many plc's up their game considerably, should it be much, much harder to raise money via issuing shares.

CYAN might find that the market is no longer so willing to cut them so much slack.....by that I mean less inclined to value on potential and more inclined to value on the reality of the present and through the broader lens of past performance. The problem with that scenario is that money will be raised at lower prices and share dilution will be more keenly felt. But that could, and perhaps should, be the price of past failures.

The 1M TNEB tender was reported as being pretty much in the bag, before it quietly fell off the radar and onto the back burner. A colleague was angered by CYAN's subsequent silence and told them if it was deemed price sensitive enough to report in the first instance, it should be deemed price sensitive enough to report if the deal was delayed or no longer happening.

This stock will be through 20p and it will test new lows if revenue is not forthcoming. Sure, significant holders can add, management can add, but at the end of the day revenue (delivered) is sanity and orders received (but not delivered) is vanity.

...and note we haven't even begun to talk about actually turning a profit.

[mtw] 02/1/2018 15:57

Cyan don't seem able to win the arguments do they ? This has been their downfall all along... convincing themselves and a few posters over at Glee Club that their solutions are best. The people responsible for awarding meaningful revenue paying contracts don't seem to agree. Nothing changed here at all.

[johnwall] 02/1/2018 12:02

realist1950 - I agree it's disappointing that EESL have gone for a GPRS/SIM-based solution, but this has been known for some months. CYAN argue that the total cost of ownership of this solution is significantly higher than with a RF mesh-based solution (though the up-front cost is less - because SIM cards are more or less free).

And of course GPRS/SIM won't work for meters in so-called 'notspots' where there is no mobile signal - hence CYAN's role in the current UK smart meter programme.

[threadworm] 02/1/2018 11:14

...iran not looking too rosy

[realist1950] 02/1/2018 10:47

Gleach23. You are not kidding.

21p bid may well look very generous over coming sessions.

[realist1950] 02/1/2018 10:45

If the company wants to break away from the historic performance of massive share dilution via fundraisings, the little issue REVENUE (banked money) is now key for CYAN.

The problem and risk in the near term is the next set of results (and the impending trading update): if these show that no significant revenue has been achieved, it will in my opinion, more or less guarantee a future cash call.

The management really should be more mindful of what shareholders have suffered in the past (and what the broader market - ie non-holders - has witnessed from afar).

The 100M order book (spread over many many years) sounds 'good' but it is meaningless if the money is never actually realised. Strong incremental payments should, by now, be a given.

Remember that a proportion of that order book was taken a long time ago (12 - 18 months ago) so there really should be no excuses for anything other than a revenue-rich H2.

H1 losses stood at almost £5M. If H2 shows weak cash flow I can see the stock being seriously marked down. I don't think the market will buy any more slippage and 'payments are coming'.

Until the company can at least partly self fund without coming back with the begging bowl, the business model is in no way yet proven.

All in my opinion. ADYOR.

[gleach23] 02/1/2018 10:34

Can currently buy in decent quantities under the Bid - looking weak

[realist1950] 02/1/2018 10:26

I have since looked at the report in the Indian Economic Times detailing the winner of the 5M meter contract via EESL.

"As a systems integrator, L&T will provide the GPRS-based solution that requires the placing of a SIM card in the meter for communication."

As far as I'm aware, GPRS is NOT the solution CYAN is offering....(instead offering only one sim in the data concentration unit).

Some may argue that a 5M meter contract, within the broader scale of the vast Indian market, is not significant......but how can that be reassuring when John Cronin himself has lauded, on many occasions, that their solution is 'sticky'....and subsequently implying that whoever wins an initial chunk of a given market is then more likely to go on and win the rest.