Cyanconnode Share Discussion Threads

[indiestu] 08/11/2024 09:41

Revenue for the first six months of FY 2025 was flat compared to the revenue
for the same period of FY 2024, largely as a result of some slowdown in
deployments during the India elections.

So people stopped working in Q2 to vote? Come on.

There is not a chance in hell they will book 25m in revenue in the next six months. Bitter disappointment coming here.

[multibagger] 08/11/2024 08:40

Hi amt !

Yes the revenue weighting is highly skewed. Uncomfortable to some but that is the lie of the land. H1 is generally quite slow, then H2 picks up and it is in Q4 where there is a sharp spike in revenues. As an example, last FY we went from H1 circa £5.7m to £18.73m by year end.

If Indian subsidiary partial equity sale occurs that could be worth about £ 35-45 million I reckon depending on amount of equity sold and structure of the deal. I wonder if we have started bidding as an AMISP ? I seem to recall from the presentation in May that we are in the ballpark timeframe now - towards the end of 2024.

[indiestu] 08/11/2024 08:35

I think there is an underlying trust issue here that will keep the price down until the figures prove progress is being made.

From FY24 results - forward looking statement

Revenue growth has been robust in the new financial year, with first-quarter revenue of £5.5 million, marking an increase of 25% compared to the same period in FY24.

From HY25 results - actual figures

Revenue of £5.6m (H1 FY 2024: £5.8m)

So zero revenues in Q2 or was the forward looking statement in FY24 a porky to get the placing away?

Losing faith in management fast, got suckered in on the placing, lesson learnt. Again!

[daddy warbucks] 08/11/2024 08:24

Thanks SBP.

[amt] 08/11/2024 08:24

Blimey so 30m odd turnover expected in H2.

[stupidboypike] 08/11/2024 08:18

Daddy - in the "going concern" section:-

It also continues to discuss options of taking equity into its subsidiary in India.

Best regards SBP

[daddy warbucks] 08/11/2024 08:13

Just wondering if we can read anything into the fact that results this year are out a month ahead of the last two years results?Can we expect more news about contracts or Intellismart wanting to take a percentage odour Indian subsidiary?

[folderboy] 08/11/2024 08:04

Hard to remain positive when results like these see the share price trickle downwards. Daily!

[homebrewruss] 08/11/2024 07:54

Zeus:
'Valuation and catalysts: Record profits, margins and FCF in H2 could increase investor interest
and trigger a rise in the undervalued shares. Our preliminary DCF model indicates a valuation of
26p per share. CyanConnode’s revenue opportunities in India are still at an early stage and should
multiply. India’s Revamped Distribution Sector Scheme (RDSS) targets sanctioning 250m meters
by March 2025. Whilst over 200 units have been sanctioned already, only just over half (132mm)
have been awarded and there is then a delay of a few months for the subsequent awards to
subcontractors such as CyanConnode. Given CyanConnode’s high win-ratio of c. 25% in volumes
terms for RDSS tenders in India, we expect further contract announcements as more units are
awarded and more communications providers are finalised.'

[multibagger] 08/11/2024 07:51

Good morning SBP and all :)

Thanks for your "underlying profit upgrade" insight for a non-accountant like me !

Given some of the BB posts one would think that people are held at gunpoint and forced to invest in CYAN !!! The "filter button" is the best tool on a BB and I use it to cut out what I consider drivel.

I note the sentence about new business in Malaysia, Indonesia and Azerbaijan and more to come for MENA - all besides our strong and strengthening position in India.

"....The Company is currently working on opportunities in Malaysia, Indonesia and Azerbaijan...."

Indonesia is the 4th biggest country population wise with circa 270m - about 4.5x the population of the entire UK. And India is the largest.

R&D wise we are leading, adapting, evolving and developing products that the market wants....

Innovation

During the period significant work has been undertaken on innovation to further enhance the Company's product suite. The following products have either been developed or enhanced, in each case to ensure the highest performing and lowest cost version to maintain the Company's competitive position in the market, and reputation as a company achieving constantly high Service Level Agreements ("SLAs").

· In-Meter Gateway

* To compete with cellular

* Be Competitive

* Faster and Ease of Deployment

· Production of Long-Range Radios

· Gateways with 3 Phase Power Supply

* For compliance to local specifications

* Thailand and markets abroad

· Unified Head End System ("uHES")

* A Head End System that will allow both cellular and RF, including that of third-party providers, to connect

Low Cost CNIC

* A low cost version of the Company's Cellular Network Interface Card ("CNIC") at a competitive price point to suit the market in India


· Solution on FG28 platform

* Design in of a newer, high performing chip

Information is freely available, how people use it is entirely up to them.

Good luck all :)

[stupidboypike] 08/11/2024 07:44

Yes nice of all the new posters to give us their insight - wonder where they have come from. Anyway back to the facts!

This interim has a gross profit margin of 41%, apply that to full year expectations of
34.5 (which we are told confident of meeting) and we have gross profit of 14.14, that's approx 2m above market expectations. So actually I believe there is a underlying profit upgrade message in the interims. Everything else looks as expected. For any new readers the H1/H2 split is entirely normal for Cyan.

Best regards SBP

[apotheki] 08/11/2024 07:40

John Cronin, Executive Chairman, commented:

"The Indian smart metering market continues to gain momentum, with sanctioned tenders exceeding 200 million smart meters. Of this total, contracts for approximately 132 million smart meters have already been awarded to prime bidders, underscoring the Government of India's commitment to install 250 million smart prepayment meters under the Revamped Distribution Sector Scheme (RDSS).

CyanConnode's order book has demonstrated strong growth, more than doubling during this period from 6.3 million units at the start of the year to 13.1 million units. Our current backlog stands at 9.7 million units yet to be deployed, having increased substantially from 3.5 million units at the end of March 2024, with a significant portion of this expected for delivery in the second half of FY 2025. Historically, our revenue recognition is heavily weighted toward the final quarter of our financial year, as order completions and deployments often peak near year-end. We expect this seasonal trend to continue, with a substantial proportion of this year's revenue materialising in Q4.

Given this pattern, we remain confident in meeting market expectations for FY 2025.

Our business outside of India is also progressing well. Since the end of September 2024, we have secured a follow-on order for the Middle East and North Africa (MENA) region, valued at over $1 million. This order is expected to be fulfilled within the current financial year, further supporting our revenue forecasts and expanding our international footprint."

[hamidahamida] 08/11/2024 07:39

It's like football club saying these dreaded words we have full confidence in our manager and we all know what happens to a underperforming teams manager Gets sacked soon after that dreaded statement from the board

[folderboy] 08/11/2024 07:38

Kind of these "newish" posters to warn us.

[apotheki] 08/11/2024 07:35

· Revenue for the financial year ending 31 March 2025 is forecast to meet market expectations

[tinker10] 08/11/2024 07:33

Who cares about a revenue warning. It's their ongoing complete lack of progress towards profitability that's the problem.

[hamidahamida] 08/11/2024 07:30

Correct me if I'm wrong full year revenue expectations are 30 plus million and company just delivered 5.5 million 25 million left, hence they are waving Q4 heavily weighted Red Flag Remember whenever company states these dreaded words ..our revenue recognition is heavily weighted toward the final quarter. it's a sure sign Revenue Warning is coming

[hamidahamida] 08/11/2024 07:20

Todays RNS is screaming out disguised revenue warningSo be ready Revenue Warning is coming

[skinny] 08/11/2024 07:08

Post-Period Highlights



· Follow-on order with a value in excess of $1 million won, for cellular gateways in the Middle East and North Africa (MENA) region

· Cash received from customers since the period end of £1.4m taking cash received for the financial year to date to £8.7m

· Current market share of all installed smart metering base in India of approximately 14% and 42% of all RF deployments

· Win ratio of 25% in terms of volumes for RDSS tenders in India

· Indian smart metering market continues to gather momentum - current tenders for more than 220 million Smart Meters have been sanctioned to the end of October 2024, with 132 million being awarded to prime bidders, typically Advanced Metering Infrastructure Service Providers (AMISPs)

· Revenue for the financial year ending 31 March 2025 is forecast to meet market expectations

[skinny] 08/11/2024 07:07

Operational Highlights



· Major new contract won in India for 6.5 million Omnimesh RF Modules and associated products, doubling order book to 13.1 million units

· 265,000 Omnimesh RF Modules and associated products ordered from a subsidiary of IntelliSmart Infrastructure Private Limited

· CyanConnode India's subsidiary, DigiSmart Networks Private Ltd successfully empanelled as an Advanced Metering Infrastructure Service Provider ("AMISP") for both RF and cellular, making it eligible to bid for smart metering contracts under the Revamped Distribution Sector Scheme (RDSS)

· Setup of subsidiary in United Arab Emirates to promote business in the Middle East and North Africa (MENA) region

· Changes to the organisation to strengthen leadership in India and streamline global operations by having all engineering and operations reporting into the MD CEO of India

· Key milestones such as Site Acceptance Tests (SATs) and project go-lives achieved across several key projects

· Successful deployment of over two million nodes, making CyanConnode the first and only smart metering communications player in India to reach this milestone

· Prestigious SKOCH Gold Award won by Tamil Nadu Generation and Distribution Corporation Limited ("Tangedco") for its smart metering project powered by CyanConnode's communication network

· CyanConnode named a 2024 WIRED Trailblazer

[skinny] 08/11/2024 07:06

Financial Highlights



Full year revenue expectation unchanged, with the following highlights for H1 FY 2025



· Revenue of £5.6m (H1 FY 2024: £5.8m)

· Increase of 9% in software and services revenue as a percentage of total revenue from 11% in H1 FY 2024 to 20% in H1 FY2025

· Gross profit of £2.3m (H1 FY 2024: £1.8m), driven by an improvement in Gross Margin percentage of 10% from 31% in H1 FY 2024 to 41% in H1 FY 2025. This is partly as a result of a new version of gateway being sold, which does not use end-of-life components, and partly as a result of the increased software and services revenue as a proportion of total revenue

· Operating loss of £2.1m (H1 FY 2024 loss: £2.2m)

· Cash received from customers of £7.3m (H1 FY 2024: £7.4m)

· Cash and cash equivalents at end of period £3.7m (FY 2024: £0.9m)

· Completion of oversubscribed placing and subscription to raise £5.4 million (before expenses) at a premium to prevailing share price

[derek ten bag] 06/11/2024 11:01

Sorry IIT. Fat finger issue. Meant to type 'punts'.😉

[inthetin] 06/11/2024 10:51

DTB

Neither were 'investments' - they were both nothing more than punts.

[derek ten bag] 06/11/2024 10:24

Morning ITT, I just hope your investment in Cyan does better than your investment in Harris. Remember, I follow your musings religiously. I rely on you wise counsel.

[dumper1] 06/11/2024 08:15

Amazing what the power of misogyny and misplaced stoked up fear of migrants can achieve, hopefully he won’t take too long to pardon himself now! Get the popcorn out