Cyanconnode Share Discussion Threads

[threadworm] 04/1/2018 11:24

....also 8.6m of cash end of september give you a very good insight into how much they are burning (5.5 at year end).

..given that they wont wait till coffers are completely empty before they raise again (holding back c. 1M) 4.4m in cash takes you to about march april before they begin ferreting about for the begging bowl again...

aimo.

[mtw] 04/1/2018 11:23

Doesn't look good for them either way really does it...

[threadworm] 04/1/2018 11:18

..a look at recent events....share price begins to slide...then...

11th december...

"The Directors of CyanConnode note the recent movement in the Company's share price and comment that they are not aware of any corporate developments that justify such a movement."

12th december...

"Paul Ratcliff commented: "The Board, including the Non-Executive Directors, have seen the recent fall in the share price and as per the RNS statement released yesterday, we are not aware of any corporate developments that justify such a movement."

then..13th december:

Simon Smith commented: "Having completed a GBP8.6M fund raise only three months ago and with customer payments on existing contracts now starting to flow, I was surprised to see the share price fall last week."

between then and today two very, very large trades (hundreds of thousands of pounds) have been worked through the lse system - see past trades screen..

today, 4th jan....

"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..........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 GBP1.2m."




so the above implies that as at 11 december the company had zero concerns about any delays coming from a significant customer.....and felt that the remaining 20 odd days left in december to receive any such revenues still felt good and timely to them.

Utter utter Bullsh*t (in my opinion).

[davep4] 04/1/2018 11:06

For what it’s worth Cyan did not tender for the EESL contract.

[realist1950] 04/1/2018 10:24

mtw - I note you've been 'cyanical' for many years here.

I'm sure you've upset many along the way.....but....ultimately....you've been proven right.

The carrot-red-coloured broader pipeline figure of $320M doesn't even inspire me that much to be honest.

Even if they won ALL of that, which of course they wont - they will win somewhere between a fraction and a proportion (!), the revenues/payments would be spread over a considerable time frame: 3 - 12 years.

Throw in ongoing burn and R&D costs. Delays. Fund raisings. And inherent risks ie both cyber, technological succession, geopolitical etc...

As I said let them prove something of the business model first - at least lets see the losses substantially reduced - and significant revenues flow.

I'd rather have 100k shares in something that was growing steadily in value than say 500k shares in something that was floundering.

It's really not rocket science.

[mtw] 04/1/2018 09:54

You can just imagine board meetings... "we are world leaders... we are world leaders..."

[realist1950] 04/1/2018 09:43

No sympathy left for those buying at 16 / 17p today only to be on their backsides in a little while at 12p..10p.. or worse......pumping out and amplifying the ongoing rhetoric from the management simply because they have to.

I'm afraid there are some daft people out there who are parted from their money all to easily. This sounds harsh, but it's true, and the stock market thrives on them. Talk to any market maker.

Remember this post: The next fundraising will be dressed to the nines....justified by modest revenues only.

C.£5M in reserves for a company like this is a drop in the ocean.

Remember first half losses alone stood at almost £ 5 million.

AIMO. Rgds.

[realist1950] 04/1/2018 09:35

johnwall....one must be absolutely crackers to be throwing money at this today.

If one likes the company so much, buy at a higher price further down the line when the business is proven. Why risk everything on such an early entry...and when so much is uncertain.

There are some interviews with JC almost FIVE YEARS OLD - pushing the notion of huge markets and revenues to come.

For God's sake let them prove it, buy in at a realistic valuation and then enjoy some growth. Why bother risking all here?

Dreadful RN.

[johnwall] 04/1/2018 09:26

realist1950 - in quoting the 11/12/17 RNS you missed out the sentence that IMO sits most uncomfortably with today's disappointing news, viz -

"The Company will provide a trading update for the full year once the customer deliveries expected in December are complete.

This, coupled with the Director buys and comments in the associated RNSs, suggests to me that at the time they still expected to get revenue from whichever order it is (presumably Bangladesh) booked in 2017, which in turn suggests that they're not good at reading the runes. Given your screen name, maybe you should offer them your services as a realism consultant :-)

[realist1950] 04/1/2018 09:19

And it doesn't get any better on a second or third reading.

I firmly believe further share dilution is now on the cards.

They may have pulled in a million or two by then - which will assuage some recent buyers - and I'm sure the reasoning for the fundraising will seem persuasive......but ultimately the company is reverting to type.

Don't catch a falling knife.

I now believe this will go single digit again with time.

AIMO.

[tightfist] 04/1/2018 09:05

Disappointing for sure - aside from UKSMIP, Cyan are attempting roll-out in inherently challenging countries so I suppose this sort of delay shouldn't be too surprising :-( The market share price is currently bearing-up quite well.For me the best part of the RNS is the continuing prospect of ".....expansion into new territories" during 2018. Hopefully they can continue to gain support for placing(s) in the 20's until organic cash flow moves us forward.

[realist1950] 04/1/2018 09:03

I'm late to the computer this morning so have only just seen the news.

Where does one even begin in taking apart this trading update?

The contents fly in the face of the very recent (11th December) 'statement re. shareprice movement', where the company stated, I quote:

"The Directors of CyanConnode note the recent movement in the Company's share price and comment that they are not aware of any corporate developments that justify such a movement. The Company continues to focus on the execution of its order book of $100 million,"

Now they disclose the issue of major delays on a significant project/contract.

Disgusting.

Some might say misleading.

And the fact that some retail investors are actually buying this stock this morning is indicative of why such underperforming companies like this continue to survive.

The end of year cash situation vs what was raised in September augments my point as to just how much cash this company burns........(and note that John Cronin refers to future R&D expenditure in today's message).

Revenue is again negligible.

But to newcomers, who have not followed the company for long, the 'omni-present' promise of imminent earnings fits with what they 'want' to hear.

[multibagger] 04/1/2018 08:23

Disappointing RNS - CYAN was expecting 2/3 of revenues to come from Iran and Bangladesh this year - so it looks like Bangladesh is having delays. Iran has its own problems at the moment. So this will take a lot longer to stabilise....

About £5.5m cash + £1.3m due - so we are okay for the short term.

[escapetohome] 04/1/2018 08:09

And what price the share in old money?
This current price is after a CONsolidation.

[hybrasil] 04/1/2018 08:07

The classic short. Over promising and under delivering.

[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."