Cyanconnode Share Discussion Threads

[multibagger] 17/5/2019 20:27

Hi davep4, In terms of revenue recognition from BI, I gather that BI actually have to make and ship the nodes, for our revenue element to be recognised. I wonder once the first node is made, whether the IP element of the contract could be recognised or not - which could be substantial ? So for BI to make the nodes (and not build up excessive inventory), BI would need a customer. Let's hope they are in the process of customer acquisition for their (also our) product in countries where we are not represented. I got the distinct impression that there has been a real crackdown on revenue recognition in light of various high profile companies being given a clean bill of health by their Auditors and then suddenly finding themselves going bust - Carillion, Patisserie Valerie etc. I also got the impression that the caveat that we are "exploring funding options" statement was a part of extreme stress testing of a company's finances by the Auditors - in the event there is no new business to come our way and existing contracts faced undue payment delay.

[tightfist] 17/5/2019 19:00

Hi Davep,The CEO and COO needed to book the BI licence income to meet their 2018 bonus threshold. (What the non-execs thought we know not?) but a lot of emphasis (JC, H) was put on it being disallowed at a very high level in Deloitte - it seems more like common sense to me......

[davep4] 17/5/2019 13:26

MB not so with BI licence, production capability in 2019 H2 and therefore income now hoped for in 2020.

[multibagger] 17/5/2019 13:15

Looks like L&G are continuing to sell down....have to try and work out how many they may have left.

[multibagger] 17/5/2019 13:11

Revenue recognition guidance and rules is very specific apparently. So what would appear as homogenous "contracts" with various discoms in India, each has its own revenue recognition profile. I did not realise the complexity of this issue. Also I raised the issue of lack of numbers/missing information in RNS releases and was told that if all the numbers/information was put in, competitors could work out our price points and margins. So frustrating though it maybe from a shareholder perspective, I agree that for the greater good and long term prospects of the company it is better that entire information is not in the RNS. As davep4 says, it was confirmed that the quantum of "reduced" revenue for 2018, has not been lost, but will be reflected in 2019 accounts. So a question of timing.

[tightfist] 17/5/2019 13:03

IMO we need to attract "new money" and see the precursors to that, eg some big orders or a licensing deal with one of the three big Indian market players..FYI Wednesday's slides are now uploaded to the Cyan website

[orange1] 17/5/2019 11:29

No inflection in the shareprice graph line.

[stupidboypike] 17/5/2019 11:26

davep, that's very helpful indeed - thanks. Best regards SBP

[mtw] 17/5/2019 11:15

Maybe there is an inflection point in the company transforming pipeline causing all the white labels to clump together constricting the newsflow phase.

[davep4] 17/5/2019 11:14

I believe I can provide some links for you Fred, (give me a few days as I’m away). SBP, I believe Execs wanted to recognise £3.1m from the BI contract, however Non Execs disagreed.

[fred splange] 17/5/2019 10:59

Do you have a link to the 10% estimate?A different communications method (Zigbee 868MHz) will improve this for about 3.5% of propertieshttps://www.smartme.co.uk/technical.html

[davep4] 17/5/2019 10:25

It doesn’t quite work like that Fred. The estimate is still 10% of 23m not 2%. Incidentally SMETS2 uses G2 & G3, (not G4 & G5), so it will be interesting to see (in the future) as to what extent Telefonica is prepared to maintain legacy networks.

[stupidboypike] 17/5/2019 10:12

Hi dave, No I'm referring to the difference between the brokers forecast of £8m and the actual £4.5 See timbo003s post 517 for details. Best regards SBP

[fred splange] 17/5/2019 10:00

https://www.ofcom.org.uk/research-and-data/multi-sector-research/infrastructure-research/connected-nations-update-spring-2019Latest report shows England data coverage at 98%. 2% of 23m =? It shouldn't take you long to do the maths.

[davep4] 17/5/2019 09:58

SBP If you are referring to 4.5m v 4.7, due to new accounting standards, 200k will now be recognised in 2019.

[fred splange] 17/5/2019 09:57

The new wireless smart meter network, operated by the Data and Communications Company (DCC), will cover more homes than are currently covered by 4G . In Ofcom's latest Connected Nations report, just 88 per cent of premises receive data from mobile networks. The new national communications network will cover more than 99.25 per cent.https://www.telegraph.co.uk/property/smart-living/why-you-dont-need-mobile-signal/

[stupidboypike] 17/5/2019 09:43

Hi Multibagger, was there any discussion on the discrepancy between brokers forecast and actual revenue? Best regards SBP

[stupidboypike] 17/5/2019 08:47

timbo003, Did you get to the presentation, and if so did you get an answer about the difference in projected and actual revenue? Best regards SBP

[tightfist] 17/5/2019 07:35

We were told on Wednesday that there are now 906k SMETS2 meters installed, adding 7k each day. Target is 23m for Toshiba/CC in mid/south England/Wales. .Not-Spots figures eagerly awaited by all, BUT Connode pre-sold 200k licences so they don't foresee any revenue in 2019. The good news is that IF the meter forms part of a CC network ONCE they collect £0.625pa for 15 years!

[fred splange] 16/5/2019 18:07

To be fair, he's been pretty confident about a lot of things over the years. And..

[multibagger] 16/5/2019 17:53

JC pretty confident that a further fund raise won't be necessary.... The link is below...you know where to make the spelling correction :) pttps://www.proactiveinvestors.co.uk/companies/stocktube/13384/cyanconnode-focused-on-cost-control-and-converting-new-orders-into-revenue-13384.html[...]

[tightfist] 16/5/2019 07:25

Yes, I did attend and finally (after years of patience!) came away with a very positive impression. The entire slide pack will soon be available on the Cyan website; if you have some questions please ask afterwards.I think the entire cost-reduced BoD were present and accessible. 90% of the presenting was NOT done by JC - all-in-all, a good and worthwhile evening. tightfist

[lwaxf13] 15/5/2019 20:43

Did anyone attend the share pumping session this evening? Was it the same old; world leaders, IOT, orders falling out of their ars*s, top talent team, no share price chart, couple of PowerPoints and biscuits?