Cyanconnode Share Discussion Threads

[emptyend] 10/4/2018 07:50

Reconfirmation that the client will take the delayed hardware order is good - but cashflow would be substantially assisted if that client could locate their chequebook. If it were not for that issue, I'd think the shares would be materially higher. But, even with it, a £100mn order book company with sales doubling annually should be valued above current levels.Whilst historically playing "wait for the placing" has been a profitable game on the short side (and might still be) it is rash to assume that companies don't have alternative routes to generating cash ........I'm not sure whether they have non-core assets that can be sold but a whole company deal can never be ruled out entirely - and arguably such deals are most likely at times of cash stress.

[multibagger] 10/4/2018 07:14

CyanConnode Holdings PLC Trading Update

10/04/2018 7:01am
UK Regulatory (RNS & others)

RNS Number : 3454K

CyanConnode Holdings PLC

("CyanConnode" or the "Company")

Trading Update

CyanConnode, the world leader in narrowband radio mesh networks, today publishes a trading update for the first calendar quarter of 2018. Since the start of the year, the Company has seen increasing momentum and demand for its products across multiple jurisdictions, which will result in the Company generating more revenues in the first half of 2018 than in the full year for 2017. The Company expects levels of revenues and cash receipts to materially accelerate throughout each quarter of the year and key commercial and financial highlights of the quarter are outlined below.

Commercial Highlights

Following the appointment of Anil Daulani(1) , from Tech Mahindra, as Managing Director of CyanConnode India in September 2017, both the sales and delivery teams have been significantly strengthened. The relationships with existing meter and system integration partners have been consolidated and new eco-system partners added. As a result, the sales pipeline in India has expanded and includes multiple large commercial opportunities where orders are expected to be placed in the current calendar quarter and the second half of 2018, resulting in cash and revenues during 2018.

In addition, the Company has generated revenues and been paid for system integration work during the quarter by working with local Tier 1 partners in three separate territories, including two new territories. These three commercial opportunities could result in significant orders which the Company will continue to pursue. An additional benefit of this work is that the Company has increased the number of successful integrations with Tier 1 meter manufacturers, including some manufacturers with which the Company has not previously been engaged.

Once an order has been received from a customer, the project continues through a series of site acceptance tests (SATs) with increasing deployment volumes and complexity. Successful SATs have been delivered by the team in multiple territories during Q1 2018. SATs have also been delivered in territories where orders had been received prior to 2018 such as Iran and Bangladesh.

During the quarter, work on the smart metering contracts in Iran continued. System integration work has taken place on both the smart meter as well as the full end-to end-solution to be deployed locally. Additional commercial opportunities have also been identified in Iran and are being developed.

In the last Trading Update provided on 4 January 2018, the Company updated that it had been notified by a significant customer that deployment for one of the larger contracts had been delayed for reasons outside the Company's control. A regular dialogue has continued with this customer throughout the quarter, including a senior management visit to their head office to meet the CEO. The customer has reconfirmed that they will take delivery of the hardware that CyanConnode manufactured for them in Q4 2017, but currently the Company has little visibility on timing of the first delivery. The Company will provide a further update on progress in relation to this as soon as practicable.

The UK Smart Metering Implementation continues to progress with over 11 million smart meters now installed in homes across the country, according to new figures published by the government. Furthermore, Smart Energy GB outlook survey provides clear evidence that the overwhelming majority of customers who have smart meters installed are happy to have them. The outlook found 73% of people would recommend one and more than eight in ten of people with a smart meter think their energy bill is accurate compared to 67% with a traditional analogue meter. During 2018, the Company expects to benefit from the roll-out of the UK Smart Metering Implementation Programme. Licences for the contract were supplied by Connode and paid for prior to its acquisition by the Company in 2016, and these have been built into the roll out.

(1) An interview with Anil Daulani is available through this link:
hxxp://webcasting.brrmedia.co.uk/broadcast/5a1595583b59b604fb0b713a

Financial Highlights

At the end of the quarter, the Company had a global order book of $100 million and a large identifiable global pipeline, with new orders expected in the near term.

The CESC Mysore contract India has now officially passed the User Acceptance Testing milestone which has resulted in a large cash payment having been received. The customer contract from Genus meters for UGVCL in India is proceeding much faster than previous India projects, with deliveries having been made, payments already received, and completion expected in the coming months.

As a result of the increased spending on R&D in 2017, which was to develop the Company's new standards-based Omnimesh platform, an R&D tax credit cash refund claim will be submitted this month for GBP1.4 million (2016: GBP0.7 million). This includes an amount for claims submitted for the Swedish entity in prior years.

The Company has taken positive steps to manage and reduce the cost base, with significant reductions being made in the last six months. The cost base from July 2018 is expected to be around GBP640k per month, which is significantly lower than in 2017.

Admission of final tranche of September 2017 Subscription Shares

On 15 September 2017, the Company announced a placing and subscription to raise GBP8.6 million through the issue of 30,852,488 ordinary shares of 2 pence each ("Ordinary Shares") at an issue price of 28 pence per Ordinary Share. It was announced that 1,785,714 of these Ordinary Shares were due to be issued to an existing shareholder and admitted on 10 April 2018. As a result of timings resulting from HMRC clearance and approval of EIS relief, these Ordinary Shares will not be admitted on 10 April 2018 and the Company will provide an update as soon as clearance has been granted.

Outlook

The Company remains confident of the commercial opportunities, with further conversion of the current order book into delivered contracts, as well as additional significant orders expected. As a result of the successful deployment of the current contracts in India, further new and extension contracts are expected, including new orders in the near term. A significant development of the Omnimesh platform will complete this quarter(2) , which will facilitate the Company's ability to both compete for and deliver contracts in the larger IoT market. As a result, the Company expects revenues for the first half of the year to be greater than those achieved for the entirety of the 2017 financial year. Assuming that the Company converts a sufficient number of the above opportunities into orders during 2018, the Company expects revenue and cash receipt progression to materially accelerate and therefore the Board remains optimistic of meeting market expectations for revenues during 2018. There is a large level of uncertainty on timings relating to delivery of some larger items in the order book and pipeline, which could cause a significant change in revenues, both to the upside and downside.

The Company will provide a further update on trading progress alongside its annual results announcement for 2017 which is expected in mid-May 2018. (2) An interview with Sylvain Vittecoq, CTO, which gives more information on the new Omnimesh platform is available through this link:



John Cronin, CyanConnode Executive Chairman, commented: "Solid progress was made on multiple fronts in the first quarter of 2018. We continue to maintain management team focus on the delivery of the current order book, including the delayed contract highlighted above. In addition to the successful SATs described above I'm particularly pleased by the progress made by Anil Daulani in the India market over the last six months. We continue to be viewed as thought leaders in the smart metering communication industry as a result of the multiple contracts we have won and deployed. The commercial pipeline in India looks very good and we expect to secure additional orders from this pipeline in the near term. All of the above factors give us a good indication of being able to meet market expectation for the year."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

[multibagger] 10/4/2018 07:13

CyanConnode Holdings PLC Trading Update

10/04/2018 7:01am
UK Regulatory (RNS & others)

RNS Number : 3454K

CyanConnode Holdings PLC

("CyanConnode" or the "Company")

Trading Update

CyanConnode, the world leader in narrowband radio mesh networks, today publishes a trading update for the first calendar quarter of 2018. Since the start of the year, the Company has seen increasing momentum and demand for its products across multiple jurisdictions, which will result in the Company generating more revenues in the first half of 2018 than in the full year for 2017. The Company expects levels of revenues and cash receipts to materially accelerate throughout each quarter of the year and key commercial and financial highlights of the quarter are outlined below.

Commercial Highlights

Following the appointment of Anil Daulani(1) , from Tech Mahindra, as Managing Director of CyanConnode India in September 2017, both the sales and delivery teams have been significantly strengthened. The relationships with existing meter and system integration partners have been consolidated and new eco-system partners added. As a result, the sales pipeline in India has expanded and includes multiple large commercial opportunities where orders are expected to be placed in the current calendar quarter and the second half of 2018, resulting in cash and revenues during 2018.

In addition, the Company has generated revenues and been paid for system integration work during the quarter by working with local Tier 1 partners in three separate territories, including two new territories. These three commercial opportunities could result in significant orders which the Company will continue to pursue. An additional benefit of this work is that the Company has increased the number of successful integrations with Tier 1 meter manufacturers, including some manufacturers with which the Company has not previously been engaged.

Once an order has been received from a customer, the project continues through a series of site acceptance tests (SATs) with increasing deployment volumes and complexity. Successful SATs have been delivered by the team in multiple territories during Q1 2018. SATs have also been delivered in territories where orders had been received prior to 2018 such as Iran and Bangladesh.

During the quarter, work on the smart metering contracts in Iran continued. System integration work has taken place on both the smart meter as well as the full end-to end-solution to be deployed locally. Additional commercial opportunities have also been identified in Iran and are being developed.

In the last Trading Update provided on 4 January 2018, the Company updated that it had been notified by a significant customer that deployment for one of the larger contracts had been delayed for reasons outside the Company's control. A regular dialogue has continued with this customer throughout the quarter, including a senior management visit to their head office to meet the CEO. The customer has reconfirmed that they will take delivery of the hardware that CyanConnode manufactured for them in Q4 2017, but currently the Company has little visibility on timing of the first delivery. The Company will provide a further update on progress in relation to this as soon as practicable.

The UK Smart Metering Implementation continues to progress with over 11 million smart meters now installed in homes across the country, according to new figures published by the government. Furthermore, Smart Energy GB outlook survey provides clear evidence that the overwhelming majority of customers who have smart meters installed are happy to have them. The outlook found 73% of people would recommend one and more than eight in ten of people with a smart meter think their energy bill is accurate compared to 67% with a traditional analogue meter. During 2018, the Company expects to benefit from the roll-out of the UK Smart Metering Implementation Programme. Licences for the contract were supplied by Connode and paid for prior to its acquisition by the Company in 2016, and these have been built into the roll out.

(1) An interview with Anil Daulani is available through this link:
hxxp://webcasting.brrmedia.co.uk/broadcast/5a1595583b59b604fb0b713a

Financial Highlights

At the end of the quarter, the Company had a global order book of $100 million and a large identifiable global pipeline, with new orders expected in the near term.

The CESC Mysore contract India has now officially passed the User Acceptance Testing milestone which has resulted in a large cash payment having been received. The customer contract from Genus meters for UGVCL in India is proceeding much faster than previous India projects, with deliveries having been made, payments already received, and completion expected in the coming months.

As a result of the increased spending on R&D in 2017, which was to develop the Company's new standards-based Omnimesh platform, an R&D tax credit cash refund claim will be submitted this month for GBP1.4 million (2016: GBP0.7 million). This includes an amount for claims submitted for the Swedish entity in prior years.

The Company has taken positive steps to manage and reduce the cost base, with significant reductions being made in the last six months. The cost base from July 2018 is expected to be around GBP640k per month, which is significantly lower than in 2017.

Admission of final tranche of September 2017 Subscription Shares

On 15 September 2017, the Company announced a placing and subscription to raise GBP8.6 million through the issue of 30,852,488 ordinary shares of 2 pence each ("Ordinary Shares") at an issue price of 28 pence per Ordinary Share. It was announced that 1,785,714 of these Ordinary Shares were due to be issued to an existing shareholder and admitted on 10 April 2018. As a result of timings resulting from HMRC clearance and approval of EIS relief, these Ordinary Shares will not be admitted on 10 April 2018 and the Company will provide an update as soon as clearance has been granted.

Outlook

The Company remains confident of the commercial opportunities, with further conversion of the current order book into delivered contracts, as well as additional significant orders expected. As a result of the successful deployment of the current contracts in India, further new and extension contracts are expected, including new orders in the near term. A significant development of the Omnimesh platform will complete this quarter(2) , which will facilitate the Company's ability to both compete for and deliver contracts in the larger IoT market. As a result, the Company expects revenues for the first half of the year to be greater than those achieved for the entirety of the 2017 financial year. Assuming that the Company converts a sufficient number of the above opportunities into orders during 2018, the Company expects revenue and cash receipt progression to materially accelerate and therefore the Board remains optimistic of meeting market expectations for revenues during 2018. There is a large level of uncertainty on timings relating to delivery of some larger items in the order book and pipeline, which could cause a significant change in revenues, both to the upside and downside.

The Company will provide a further update on trading progress alongside its annual results announcement for 2017 which is expected in mid-May 2018. (2) An interview with Sylvain Vittecoq, CTO, which gives more information on the new Omnimesh platform is available through this link:



John Cronin, CyanConnode Executive Chairman, commented: "Solid progress was made on multiple fronts in the first quarter of 2018. We continue to maintain management team focus on the delivery of the current order book, including the delayed contract highlighted above. In addition to the successful SATs described above I'm particularly pleased by the progress made by Anil Daulani in the India market over the last six months. We continue to be viewed as thought leaders in the smart metering communication industry as a result of the multiple contracts we have won and deployed. The commercial pipeline in India looks very good and we expect to secure additional orders from this pipeline in the near term. All of the above factors give us a good indication of being able to meet market expectation for the year."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

[stav5001] 09/4/2018 22:39

Not just realist or CT

Some good posters here, a shame that the same cannot be said for the management.

JC looks a lot rougher than when I last saw him speaking in the flesh in that last video link posted, and does not speak with the same slightly arrogant conviction either, despite his overblown salary and options package for a very lacklustre or should I say disasterous performance as the head of CYAN.

[tightfist] 07/4/2018 11:20

Hi realist,Thanks for your post 9 days ago. A very good summary of the risks of a technology that becomes obsolete (by delayed market adoption and inability/financially-unwise to follow the trend). I worked in a technology company that wrote off £100m technology investment through an analogous situation - correctly it transpires. And recently involved in an HMG IT project that is in the final throes of a similar fate having invested over £20m.The mention of a new data team at the 2017 AGM was for me an indication of India moving towards a low-tech ("good enough") solution that was backed by national Indian interests? However.... IMHO the RoW (minus Iran?) markets remain open for business? However, will they ultimately suffer the same fate?Thanks again, tightfist

[dreamtwister] 06/4/2018 10:41

count down to the placing,could be a short day trip.www.dontdoit.com

[realist1950] 06/4/2018 08:32

Indeed.

Meanwhile......close to 1/4 of April, already gone.

[mtw] 05/4/2018 13:16

Who they offloading to is the mystery unless its that character over at lse Glee Club who thinks this will go to £1. Anyone want any £1 ties for the £1 party? Its just unbelievable that some will swallow the same guff over and over.

[lwaxf13] 04/4/2018 13:39

Could it be insiders off loading to get anything they can get before this gets even uglier than it is now? World leading best thing since sliced bread with the Midas touch :-)

[inthetin] 04/4/2018 11:42

There could be a few Albert E Sharp (Johns Powell's broker & JC neighbours) clients offloading, who are under the reporting threshold.

Have found a few links between AES & Cyan over the years.

[cancun tango] 04/4/2018 11:35

Two biggest holders on the bb's are multibagger and 67 over the road. Multi stated last week that he'd not sold. 67 (who's notifiable holding got diluted below 3%) announced a small sale a while back but has been uncharacteristically quite for a while. Could also be something to do with Beaufort.

[realist1950] 04/4/2018 11:06

It will be interesting to see if there is ever a holdings RNS stating that 'X' no longer has a notifiable interest in the company.

There has been a lot of stock offloaded - not just recently but ever since the consolidation. I remember on one very active day some 3%+ changed hands.

If we see that someone is clearing out and only informs when they are done (and have not informed the market when moving through every whole %), then that will be very naughty indeed and viewed badly by the market.

It is, of course, the sellers responsibility to inform the company of any such notifiable movements.....and then, of course, the companies responsibility to tell the market within 3 trading days.

But given the sustained selling over a such a lengthy period of time, if (IF) indeed someone of notifiable holding has been exiting (and then only informs the market when they are fully done), both that seller and indeed the company will be frowned upon.....because clearly, by now, the company will have been aware that 'something is up' and probably would have something of an obligation, or at least a passing interest, to make enquiries as to who is selling.

If it was my company I would be keen to know, EVEN IF I knew it was the sellers responsibility to tell me first.

Just my thoughts. All in my opinion only. ADYOR.

[realist1950] 04/4/2018 10:55

The seller is taking well below the quoted bid once again.

Points the way.

Heading south imo.

[mtw] 04/4/2018 10:31

About 13m too high ?

[davep4] 04/4/2018 03:05

About 13m cap if you exclude issued but unpaid share capital.

[mtw] 03/4/2018 15:30

Who remembers Cronin proclaiming that Cyan have never lost an order that they bid on. Can only assume the office responsible for putting in bids has been undermanned.

[mtw] 03/4/2018 14:34

CT... being world leading at getting away placings. Trouble is now the last lot havent been paid for and it looks like it may be game over. No doubt Cronin will come out of it smelling of roses though. Whats the betting he finds himself on the board of any potential company with deep enough pockets to splash a bit of cash on a buy out ?
AIMHO

[cancun tango] 03/4/2018 13:55

I had no idea that they needed nudging to announce the lodging. Maybe you know someone close to the company. You'd think JC would be rumbled by now, but he keeps on getting those placings away. It's his only talent, unfortunately.

[realist1950] 03/4/2018 13:11

CCT & MTW - you would have thought so, yes. But this is CYAN........the company that had to be 'nudged', back in the day, when TNEB didn't quite hit the books, to announce and explain to the market what had happened to that 'order'.

It was suggested to the BOD that if it was deemed price sensitive enough to announce, then it should likewise be deemed price sensitive enough to comment if it was no longer going ahead, or shelved, or back-burnered, or what ever they wish to call it.

This is why I think it's pertinent for investors to keep track of all of these announced 'orders' and not to get distracted by any recent 'exciting' developments.

The constant re-invention is wearing thin in my opinion.

All said without prejudice etc. ADYOR.

[mtw] 03/4/2018 12:18

And that updated cash budget being a major change should be in a RNS.

[cancun tango] 03/4/2018 11:33

No. Subs provide a right, but not an obligation to buy at a fixed price.http://www.nortonrosefulbright.com/knowledge/publications/18475/subscription-shares-the-dawn-of-a-new-eraSo the cash budget, you'd hope, will be updated for no cash injection in April.

[realist1950] 03/4/2018 11:29

Is the hook barbed?

[cancun tango] 03/4/2018 11:15

One individual is on the hook for £0.5m of subscription shares @ 28p on 10th April.

[mtw] 03/4/2018 10:56

Have the last placement shares actually been paid for yet ? Perhaps those who took part in the last placing may want to average down ;-)