Pre-Close Trading Update

RNS Number : 7409E

Cyan Holdings Plc

29 December 2009

 



29 December 2009

Cyan plc

("Cyan or "the Company")

Pre-Close Trading Update

Cyan (AIM:CYAN), the fabless semiconductor company providing configurable application software and production ready modules based on feature rich, low power, microcontroller chips, is pleased to provide the following pre-close trading update:

Production Orders

Progress continues to be made at the Company, which has sold tens of thousands of microcontrollers, thousands of wireless gas meter controllers and hundreds of street light controllers. These have been used for prototypes, pre-production and field trials. The number of customers carrying out field trials continues to grow and none of the customers which have purchased products from Cyan have chosen an alternative supplier or cancelled their respective projects. Some are awaiting the release of government funding and some are waiting for their respective customers to place a production order for a product that has passed field testing. 

The Board of Cyan has put diligent efforts into supporting prospective customers and is confident that volume production orders will be confirmed next year.

Products

Cyan's value proposition is a complete and low cost solution, designed to deliver fast ROI. 

In our chosen markets Cyan's Microcontrollers perform all required functions with a single microcontroller where competitor solutions require two. Additionally Cyan's 16 bit microcontrollers are used where competitors require more expensive 32 bit systems. Cyan's solutions are therefore lower cost and lower power, which delivers further per unit cost reduction by reducing battery cost. 

In Asia wireless meters enable remote reading and remote switch off in the event of non-payment. In India (where the Board believes 40%-50% of electrical supplies are stolen) remote wireless meter reading allows profiling of household energy usage to identify the culprits.  

Where demand exceeds generating capacity, wireless meters enable demand control, eliminating brownouts or minimising the requirement to import expensive electrical energy. In Europe, billing according to time of day can redirect energy usage to times of lower demand and use more efficient generating stations.

Lighting controllers reduce power consumption through dimming, maintenance costs through remote reporting and replace unmetered estimated costs with bills based on actual energy usage. 

In all of our chosen markets Cyan's products provide a low cost product that provides immediate cost savings for our customers.

Customers

Cyan is now engaged with substantive customers in China, India, Africa, Europe and the USA. Many customers have completed field trials, proving the energy savings that can be achieved and the Company awaits production rollouts.

An established European metering company that has designed Cyan in to its automated metering product was recently acquired by one of the metering industry's largest players and the Board expects that the Cyan based product will now be rolled out across Europe and the expected requirement of tens of thousands of units in 2010 will increase, potentially significantly. 

Two third party companies have adopted Cyan's gateway products as part of their product offering and the Board is currently negotiating similar agreements with two others. Cyan announced a partnership with Future Electronics, one of the big three global electronics distributors and the Summer was spent training their sales channel and Cyan is reviewing regular sales forecasts and working through a series of customer visits initiated by Future in multiple countries.

Management

The Company has recently recruited a Chief Operating Officer and a new VP worldwide sales and marketing, both of whom are highly experienced appointments and have taken the decision to join Cyan because of the opportunity they recognise lies ahead for the Company as it moves ahead into the commercialisation of its very strong product range.

Outlook

The Company's decisive action and substantial cost cutting at the start of the year, coupled with the funding provided by shareholders, affords the time for anticipated production orders to materialise.   

The Board believes that Cyan has the products, the prospective customers, the funds, partners and the management team to deliver the success and looks forward to further announcements in the New Year and to 2010 with confidence.

Enquiries

Cyan Holdings plc Kenn Lamb, CEO	Tel: [phone]
Cenkos Securities plc Stephen Keys / Camilla Hume	Tel: [phone]
Hansard Communications Ltd John Bick	Tel: [phone] Tel: [phone]

About Cyan

Based in Cambridge in the UK, Cyan Holdings plc is a fabless semiconductor company specializing in the development of applications solutions collectively known as "Cy Solved(TM)" which are built upon the company's low powered, configurable eCOG1x and eCOG16E01 microcontroller chips. 

Cy-Solved incorporates ready to go solutions for metering and lighting control that incorporate software stacks, applications examples, modular software based on easy to use APIs, evaluation boards and production hardware modules from partners, all pulled together through Cyan's free integrated development environment CyanIDE(TM). Cy-Solved can be incorporated as-is into an application but also supports an ability to be easily customised - either way giving users a head start on the road to market. Currently available Cy-Solved applications include RF-Solved, USB-Solved, Ethernet-Solved as well as specific metering and lighting products.

The Company was founded in 2002 and listed on AIM in 2005. Cyan Holdings plc operates through the brand 'Cyan'.

 

END

 

 

TSTUWVARKVRUUUA