Order Update

RNS Number : 3312J

Cyan Holdings Plc

29 June 2011

 

Cyan Holdings Plc

("Cyan" or "the Company")

Order Update: China Public Lighting Control

Cyan Holdings Plc (AIM:CYAN.L), the integrated system design company delivering mesh based flexible wireless solutions for lighting control, utility metering and industrial telemetry announces that it has received a follow on order from a previously announced Chinese Lighting customer.

This follow on order is for a further 12,000 modules, for a project which has now grown to over 220,000 units in a single city. Including this order Cyan has received orders for 24,000 units to date from this customer for this project and Cyan expects to receive orders to fulfil it. 

The Board of Cyan understands that since the initial order, this customer has been actively marketing their HID lighting solution incorporating Cyan's technology and has three further cities poised to order their product. This follow-on order will be installed in a suburb of the city for which the first order was made before the end of Q3, in order to demonstrate a single installation of greater than 10,000 lights and also to demonstrate a new maintenance feature implemented by Cyan. This additional software feature will signal the location and type of any light failure and provide a list of required maintenance calls each morning. Cyan understands that this demonstration of a 10,000 light installation is a prerequisite for orders from these three cities. Cyan believes that it is reasonable to assume that new cities will have comparable requirements.

Since the original order this customer's product has received authorization and endorsement from multiple Chinese agencies. Additionally Cyan has been informed that in July this customer expects to be allocated further cities under a government sponsored and investment funded energy management contract (EMC). The Board understands that the potential contract could require replacement levels in excess of five million of units over a three year period.

Kenn Lamb, CEO of Cyan Holdings plc commented:

"I am delighted to announce this follow on order. We have been working with this customer on their initial installations and have developed a hand held unit that will accelerate deployment, but even without this the customer is on track to achieve their target installation rate of 10,000 units per month in this first city. We can see that a further three cities are likely to place orders early in Q4, but it is the breaking news of the imminent release of government funds for EMC contracts that will transform the size of the market for this customer and for Cyan lighting control products. The potential requirement for millions of units in over three years is consistent with our understanding of the size of the lighting market in China and could be transformational in the Company's growth. This is one of a number of active lighting customers in China and India, which together promise to deliver significant revenue growth. I am pleased to announce that first half 2011 revenues will exceed revenues for the whole of 2010 despite this being only the very beginnings of the expected revenue growth curve."

Cyan Holdings plc Kenn Lamb, CEO www.cyantechnology.com	Tel: [phone]
Cenkos Securities plc NOMAD and Joint Broker Stephen Keys / Adrian Hargrave XCAP Securities plc Joint Broker John Belliss / Parimal Kumar	Tel: [phone] Tel: [phone]
Hansard Communications Ltd Adam Reynolds / Nicholas Nelson	Tel: [phone]

 

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