CyanConnode receives order for 100,000 software licences from Swedish system integrator

AIM-listed clean technology firm CyanConnode has received an order for 100,000 software licenses from HM Power Metering, a Swedish-based systems integrator, to implement smart grid and internet of things systems.

The purchase order is expected to cover HM Power's initial requirements for Panmesh software licenses, as Cyan Connode agreed to distribute its smart grid and internet of things solutions to HM Power in April 2016.

The orders will also be invoiced as the licenses are delivered to HM Power's utility customers, as part of the rollout to replace existing smart meters in Sweden.

The sale of Panmesh software licenses include an ongoing recurring revenue stream from annual maintenance charges over a 10-year contract.

CyanConnode claimed that Sweden was the first country to install smart meters for its customers in 2009, with the full-scale installation of automated meter reading and advanced metering infrastructure systems reaching 5.2m Swedish consumers.

HM Power has a customer base of about 650,000 smart meters and 30% of the ring main unit and advanced fault indication equipment market in Sweden. It previously integrated CyanConnode's IPv6 standards-based solution, Panmesh, with its smart grid equipment, electricity meters and other internet of things products.

John Cronin, CyanConnode executive chairman, said: "This order further demonstrates the suitability of our Panmesh technology to deliver future-proofed customer value. Ease of implementation and deployment of CyanConnode's narrowband mesh technology allows customers to build the network as they deploy the solution, supporting cash flow, up-time and end-to-end security.”

Anders Hjort, chief executive of HM Power, said the market is now implementing next-generation technologies to support both internet of things sensor applications that enable smart grid solutions and advanced metering infrastructure solutions.

Hjort added: “With a large customer base, HM Power is now well positioned to provide next generation smart meters and smart grid equipment. CyanConnode's IPv6 Panmesh technology delivers flexible, cost-effective communications for single and multi-application networks."

Shares in CyanConnode were up 2.56% to 0.200p at 0849 GMT.