Cyanconnode Share Discussion Threads

[tightfist] 09/7/2019 10:09

I took a lot more notice of the earlier, more factual, sections of the RNS. JC has a very long history of just-around-the-corner optimism and weird statistics........ maybe one day it will become realism, or maybe not!

[realist1950] 09/7/2019 10:05

Yeah, yeah.

You're experiencing a pre-placing massage imo, cpap man.

The blinds at CYAN HQ have been closed and the begging bowl is being bought to the table!

Held aloft by Heather!

[cpap man] 09/7/2019 10:05

CYAN chart starting to also look rather interesting....perhaps even bullish?!?!?

[cpap man] 09/7/2019 10:03

John Cronin, CyanConnode Executive Chairman, commented:

"We are pleased to announce follow-on orders for existing projects which will deliver revenue in 2019. The additional units for the deployment at UGVCL further demonstrate the suitability of Omnimesh for the Indian market, which continues to present a vast opportunity for growth for CyanConnode. In June 2019 Bloomberg reported that "India is considering a plan to install smart meters in every home and business as part of its ongoing effort to turn around the country's ailing power sector, according to officials with knowledge of the situation." (1). Following this report and Narendra Modi's re-election as India's Prime Minister, we expect to see renewed activity of the Smart Meters National Programme in H2 2019, resulting in further significant orders for the Omnimesh AMI platform.

"Solid progress is also being made on the roll-out of SMETS2 meters, and we look forward to giving further updates on global sales of our innovative smart metering solutions as the year unfolds."

[realist1950] 09/7/2019 10:00

Today is the little order update I predicted in my previous post.

As ever, revenue is only 'predicted or anticipated or expected' in a future period.

IMHO you can expect to see another funding round in the not too distant future. This is the first step in the grand old ceremony that we've all come to know and hate:

The Dusting-Off of the Gilt-Copper Cyan Begging Bowl...........soon to be regilded, given how much it's been handled.

We'll see!

[tightfist] 09/7/2019 09:47

Hi Buywell, I am not surprised the chart puts you off! A reason to Buy now could be that you believe, for example, that a game-changing deal in India will be announced in the next few weeks (see dates fun contest posts a couple of months ago!) or that you think the company will receive an acquisition offer..This morning's RNS is notably clear and contextual; what lies around the corner (apart from UK SMITS2) is still IMO a punt/probability. I need to read the Indian industry links; first impressions are a little too future-speak for me..Otherwise (albeit reduced) cash-burn will have it's way....Good luck! tightfist

[cpap man] 09/7/2019 07:40

CyanConnode Holdings plc

("CyanConnode" or the "Company")



Follow-on Orders from India and UK Smart Metering Implementation Programme



CyanConnode Holdings plc (AIM: CYAN), a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, is pleased to announce that it has received follow-on orders from Genus Power Infrastructures Ltd ("Genus"), a leading Indian based smart metering and power infrastructure company and Toshiba Information Systems (UK) Ltd ("Toshiba") for its RF mesh technology which offers highly reliable, low power and cost-effective M2M data communication for smart meters.

Follow-on Indian Order

A follow-on Indian order from Genus has been received for a further 4,050 smart metering units for the deployment at Uttar Gujarat Vij Company Ltd ("UGVCL"). The Company expects to recognise revenues for this contract win in H2 2019.

An initial order of 23,000 smart meters was placed by UGVCL in July 2017 and was the first order from India for an IPv6-6LoWPAN based technology, which was developed by Connode AB in Sweden prior to its acquisition by CyanConnode. The IPv6-based solution supplied to UGVCL was an early version of the standards-based Omnimesh Advanced Metering Infrastructure (AMI) platform, the full of which was formally launched in June 2018.

The UGVCL project was inaugurated on 27 February 2019 by The Energy Minister of Gujarat, Shri Saurabh Bhai Patel. Notably, the project is meeting or exceeding all service level standards, in accordance with Central Electricity Authority of India guidelines. The first phase of the project has seen significant improvement to back office functions and major reduction of Aggregate Technical & Commercial, (AT&C), losses.

Follow-on UK Smart Metering Implementation Programme (SMIP) Order

CyanConnode has received a follow-on order from Toshiba worth approximately £213,000, for service enhancements relating to the UK Smart Metering Implementation Programme, (SMIP), which it expects to recognise as revenue in H2 2019.

Toshiba has a contract with Telefónica which is providing communications to the Data Communications Company, (DCC), in the Central and Southern regions of the UK, where approximately 24m SMETS2 meters will communicate with the DCC, using 2/3G cellular communications hubs.

Where 2/3G cellular signal is unavailable, (known as not-spots), a dual communications hub is installed on the SMETS2 meter. The dual communications hub has CyanConnode's RF mesh technology embedded alongside the 2/3G cellular technology and automatically forms a RF mesh. Typically, where a dual communications hub is installed, up to approximately a further four dual communications hubs are required to form a local RF mesh. CyanConnode reconfirms that it believes that 10% (2.4m) of SMETS2 meters, will be fitted with the Toshiba dual communications hub and that its contract with Toshiba will ultimately deliver a total of approximately £25.7m of revenue.

Installation of SMETS2 meters commenced just over a year ago and the DCC confirms that over 1.3m meters are now connected to its network. (1)

John Cronin, CyanConnode Executive Chairman, commented:

"We are pleased to announce follow-on orders for existing projects which will deliver revenue in 2019. The additional units for the deployment at UGVCL further demonstrate the suitability of Omnimesh for the Indian market, which continues to present a vast opportunity for growth for CyanConnode. In June 2019 Bloomberg reported that "India is considering a plan to install smart meters in every home and business as part of its ongoing effort to turn around the country's ailing power sector, according to officials with knowledge of the situation." (1). Following this report and Narendra Modi's re-election as India's Prime Minister, we expect to see renewed activity of the Smart Meters National Programme in H2 2019, resulting in further significant orders for the Omnimesh AMI platform.

"Solid progress is also being made on the roll-out of SMETS2 meters, and we look forward to giving further updates on global sales of our innovative smart metering solutions as the year unfolds."

ETC, ETC....

[fred splange] 08/7/2019 23:41

This has been a great investment for the last. 15 years. Honest.

[buywell2] 08/7/2019 22:27

Whilst I like some of what I have read about this story

The chart of CYAN puts me off from buying at the moment

Is this a historical low that seems to be approaching ?

Can anyone give me a case to buy now ??

[multibagger] 06/7/2019 06:33

“.....The government intends to provide '24X7 Power to All' at affordable rates. Therefore, there would a provision in the tariff to cap transmission and distribution losses. Once the tariff policy is approved, the discoms would not be allowed to pass on these losses beyond 15 per cent.

The new power tariff policy would also encourage time of the day tariff where consumer would be charged more during peak hours. This would also enable the consumers to reduce their electricity bill by consuming more electricity during non-peak hours....”

[multibagger] 05/7/2019 15:44

Smartdcc rollout update from 05 July 19

1,304,168

[multibagger] 05/7/2019 15:23

Indian budget earlier today...with an interesting and positive shift in emphasis of further benefit to us.



“.....Due to the limited impact of Ujwal DISCOM Assurance Yojana (UDAY) targeted at turning around debt-ridden state power distribution companies, the ministers are also expected to discuss UDAY-II, wherein greater emphasis will be put on technology for reducing theft and improving metering, billing and collections.
While speaking about UDAY, Sitharaman said the scheme is being examined and will further be improved....”

[lwaxf13] 02/7/2019 17:28

Is it really 6 years of failure from JC to deliver share holder value?!! He has turned out to be a real asset. Ka-Ching.

Maybe they would do better if they sold used cars!!!

[realist1950] 02/7/2019 15:55

On current performance and news flow this is heading for a new low.

There are sufficient numbers of new holders with 'hot' stock who will drop their holdings in order to avoid going too far into the red, and I for one, would not blame them.

It's also worth bearing in mind that any positive news will be heavily sold in to, given the length of time this is taking and the number of stale bulls that must surely have been locked in for a considerable period.

A better, safer and more realistic approach here would be to simply wait for the company to prove itself (to prove it's model) and THEN to buy in (albeit at a higher price). WHY people continue try to bottom fish a company with such a poor track record is beyond me. Perhaps it's because they are new to the company and do not fully understand the history or the market it operates in.

Finally, it's worth remembering this is a TECH stock.......and these kinds of business are always cash-hungry (even at the best of times) given the shifting and transitory nature of the sector. This is especially true of emerging markets....of which CYAN is engaged.

Therefore it seems clear to me at least, that this company will need much more money going forwards as the market sector and the business itself develops. IF indeed it develops.

I should add, as a proud Brit......I like to see any British company excel, both domestically and internationally. But this wish in itself does not inform my investment decisions. Where this stock is concerned, balance is needed on this (and other) bulletin boards, for the company seems to attract the exceedingly hopeful who are quick to champion the business and all too quick to dismiss those bears who have watched the progress (or otherwise) for 15 years longer than them.

Regards.

[realist1950] 02/7/2019 15:42

mtw - I thought you would realise that the shareholding structure here is so weak and dispersed that there are no 'larger shareholders' to speak of and none who would (or indeed COULD) oust the BOD imo.

There are some institutions, true, but they are not buying in and holding shares in the kind quantities that warrant any true concern on their part...they are pretty distant to the stock and indeed, much like the fundies who have taken part in the many placings are just fulfilling the wish of their clients for a bit of risk in their portfolios. And of course this represents just a fraction of their wider portfolios. Pretty much all those millions of shares have either been sold at a loss, or have become worth very little by the yr on yr dilution that we've seen over the past 15 or so years (6 years for the current BOD).

It is through this action that the company has managed to survive as long as it has, for they have never managed to sell their product in serious quantities, let alone turn in a profit.

From this perspective at least, you could say (as I've previously posted) that the market itself has become CYAN's best customer as this has become the overwhelming source of funds.

A google search for the company tends to confirm this; pretty much all of the results (over many pages) refer to THE MARKET......either to chat bulletin boards, financial websites, magazines and so on. There is very little in the way of actual primary 'business'. That's very alarming for a company that has actually been 'trading' (if one can call it that!), for over 15 years, albeit c.6 years under the current bosses.

The only threat to the BOD really would be the future scenario of being unable to to raise future funds; there are no concentrations of shares with sufficiently interested parties for them to risk being sacked imho.

If that happens I imagine it will be taken private....and the market would have funded the development of something over many years without ever having reaped any reward.

When the company recently announced that it should be able to execute it's business plan on existing funds, I did not believe it for a moment. I fully, fully expect another funding round and it will be interesting to see the spin on this if/when it comes.

I also expect another order update to either precede, flank or shadow the above when it comes.

All in my opinion. ADYOR. All written without prejudice, as ever.

[yump] 02/7/2019 15:19

When I was on expenses commissioning stuff years ago, we used to get on a plane to some factories, knowing that there was little chance of running the trial plant and then go play golf for the week. That business was floated and had shareholders.

Not saying that's what top management here are doing of course. Just a little amusing anecdote. Oh and when I used to work at a recruitment business in the 80's, we used to have a party every month in Europe somewhere nice, courtesy of the generous commissions we gave ourselves for recruiting puffy chested directors into PLC's. Of course the Personnel Directors of a few PLC's were invited along as well - be rude not to.

The question is, has anything changed...?

[davep4] 02/7/2019 14:40

3 out of 5 ousted in the last 12 months.

[mtw] 02/7/2019 12:43

it beggars belief that the economies of truths have been happy clapped for so long by certain posters mainly at lse glee club. imho it is such posters partly responsible for the cosy position the BoDs retain. I have never understood why the larger shareholders have not ousted this shower long ago.

[realist1950] 02/7/2019 08:55

Someone selling well, well under the bid in order to get shot.

[realist1950] 02/7/2019 08:54

The buyers of 'yesterday' are the sellers of 'tomorrow'.

Cue the scramble to get out.

It has begun.

[lwaxf13] 26/6/2019 17:23

Is anyone here? On a serious note what do you think the big hitter management, sales and finance teams do all day? Seriously. It’s not like they are selling much stuff. It’s not like customers are banging down their doors. It’s not like they are successful. Roll on the next fund raise to keep this job creation scheme going a bit longer.

[davep4] 25/6/2019 23:48

Buywell3

Telefónica is contracted to provide G2/G3 network communications to the DCC for the Central and Southern Regions for a period of 15 years, (due to delays, I am uncertain as to when the contract period starts).

It may well be the Communication Hubs can be upgraded to G4/5, however I suspect that it will be cheaper to maintain the G2/3 network rather than upgrading 24m meters.

Also consider, that as the contract has suffered from several years of delay, that the G2/G3 network has to be maintained several years longer than Telefónica expected.

The RNS you refer to is partly correct in that 10% of SMETS2 meters are expected to be fitted with the Dual Communications Hub.

However the RNS is incorrect in saying that 10% of SMETS2 meters will be located in a ‘not spot’. If that were the case then around 50% of meters would need be fitted with the Dual Communications Hub at the predicted 1:4 ratio, (but that ratio would reduce if ‘not spots’ were as high as 10%).

I hope this helps.

Further.......

(i) G2/3 ‘not spots’ are being confused with Zigbee communication issues, which is an entirely different problem.

(ii) If the Dual Communication Hubs were upgraded to G4/5, that would not alter the Connode contract, nor the way in which the RF mesh operates.

[buywell3] 25/6/2019 08:44

I wonder what happens to the meters that have formed the low hanging fruit installation when 2G 3G are withdrawn ?

Can't be very long now for 2G I would have thought , presumably they stop working

What then ?

Just seen this


23/02/18

In the UK and Europe you are likely to see MNOs shutting down 3G first and the frequencies being assigned to 4G to boost capacity.

Every device on the market supports fallback to 2G for voice and data services, and 2G has the greatest coverage.

Plus the 2G core network is much simpler to maintain than 3G which is a real headache for the mobile operators.

Europe has has a lot of machine-to-machine (M2M) devices deployed in the field which use 2G for transferring tiny amounts of data on an infrequent basis. Due to cost, power limitations and sheer logistics these devices won't be upgraded to 4G for a long, long time, if ever. There isn't a business case to do so.




buywell adds

So 2G might be around for longer than some people think BUT ... telecomms equipment does not last forever , from my experience once over 10 years and it can start acting up. Maintenance and spares then become an increasing problem.

[buywell3] 25/6/2019 08:32

thanks davep4

Perhaps now you can post on the pros and cons of 'not spot'

Does that get around the 2G 3G issues ?

The way I read this is that 'not spots' mean increased revenue for CYAN from Toshiba

Re

'The Toshiba contract was originally calculated to deliver £24m of revenue based on the
assumption that 10% of SMETS2 meters would be located in ‘Not-SpotsR17;. However, Energy Suppliers are now finding that dwellings with thick walls, or in blocks of flats, or in areas with poor mobile signal, are contributing to one out of three meters being located in ‘Not-SpotsR17;. Consequently, if the percentage of meters located in ‘Not Spots’ is more than 10%, then CyanConnode’s revenue expectations from the contract will increase on a pro-rata basis. '

[multibagger] 22/6/2019 16:28

Welcome Ireland and Belgium :)