CyanConnode receives $5m order from Bangladesh

Narrowband radio mesh network provider CyanConnode announced on Thursday that the $5.4m purchase order from an unnamed specialist in energy management systems for a smart metering contract in Bangladesh, initially announced on 9 February, had now been increased to $9.3m.

The AIM-traded company said the order for CyanConnode's ‘Advanced Metering Infrastructure’ (AMI) solution had been increased from 150,000 units to 250,000 units to meet the increased requirements of the geographic territory in Bangladesh that had been awarded to the energy management systems company, based in Eastern Europe.

It said the energy management system company, which manufactured around 1.5 million utility meters per year, would integrate CyanConnode's hardware with its meters, and shipment to their production facility will take place over the next 12 to 18 months.

CyanConnode would also provide Head End Server Software, which would be hosted by the energy management system company, with annual software licence income being recognised over a ten-year contractual period following successful smart meter implementation.

The recurring revenue software licences and annual maintenance contract, which represented around 50% of the revised purchase order value, would be paid annually and charged on a per-meter, per-year basis.

This increased order from the Ukrainian company for utility customers in Bangladesh demonstrated the success of the company's scalable business model, the CyanConnode board claimed.

Additionally, it said the order size and revenue visibility provided by the 10-year contract reflected the company's leading position within the smart metering industry across both emerging markets and Europe.

“We are pleased to announce a significant increase to the recent order from our partner for their deployment in Bangladesh,” said CyanConnode executive chairman John Cronin.

“CyanConnode provides world class support to its partners, enabling them to integrate and deploy its narrowband mesh network technology.

“Through the transfer of skills this collaborative approach facilitates customer ownership and develops customer loyalty, which is demonstrated by this substantial order.”