Aim minnow Cyan doubles in value after £10m Iranian deal

Discussion in 'Market News' started by Lily, Apr 6, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Smart meter specialist wins £10m order after sanctions lifted on Iran

    Cyan, an Aim-listed minnow, has seen its shares more than double after unveiling an order bigger than its market value before the deal.

    The smart metering company has received an order from Iran worth £10m for 360,000 units, after an initial testing period earlier in the year. Its shares have jumped 115% to 0.28p, with its market capitalisation soaring from £9.4m to £19m. Cyan said:

    The order [from telecommunications contractor Micromodje] is significantly larger than any purchase order received to date by Cyan and marks a step change in the company’s commercial progress.

    Not only is the order ten times larger than any previous orders we have received, but this Iranian order also marks Cyan’s entry into a new territory.

    We think that the rapid follow up to the pilot order announced in February shows that Cyan’s product is easy to deploy and is delivering its expected benefits. We think the company is beginning to gain real market traction, de-risking our investment case.

    The shipment and installation of hardware will begin towards the end of the current year following integration of Cyan’s hardware with a locally manufactured smart meter. Hardware revenue will be recognised as it is delivered over a two year period. The software licence income will be recognised over a five year initial contract period following successful meter installation and paid annually in advance on a per meter per year basis. This will deliver a recurring revenue stream beyond the initial hardware sales and potentially beyond the initial contract period.

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