Purchase order for smart metering in Iran

RNS Number : 4366O

Cyan Holdings Plc

09 February 2016

 

Cyan Holdings plc
("Cyan" or the "Company")

Purchase order for smart metering in Iran

Cyan (AIM:CYAN.L), the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control, announces receipt of an initial purchase order from telecommunications contractor Micromodje for a 2,000 unit smart metering implementation, which will be fitted into street traffic cameras in the Islamic Republic of Iran.

This initial purchase order is worth £67,000 with an upfront payment of £50,000.  The order from Micromodje is for the supply of Cyan's CyLec Advanced Metering Infrastructure solution, which includes RF modules, data concentrator units, head-end software ("HES") licenses (charged on a per meter per year basis), software installation services and an annual software maintenance agreement (also charged on a per meter per year basis). The order was placed only a couple of weeks after international sanctions were lifted on Iran on 16 January and is believed to be one of the first orders secured by a UK business, with support from the specialist UK Trade and Investment team.

The first units were delivered at the start of last week and were successfully deployed in a two day period for a proof of concept to measure the energy consumption of the street cameras. The Cyan HES has been installed on a Micromodje server in Iran and the Cyan end to end solution is providing meter readings every 30 minutes as well as the ability to connect/disconnect supply. The solution has been demonstrated to Micromodje's Iranian customer. The proof of concept had to be ready for a demonstration to government officials as part of the Victory Day of the Iranian Revolution celebrations on 11 February in Tehran.

Micromodje is a system integrator with a wealth of experience in delivering solutions for government contracts and has recently been expanding its core capabilities to include the emergent Internet of Things ("IoT") connectivity markets. It will act as a distribution agent of Cyan's smart metering hardware and software in Iran, whilst providing a complete turn-key service for the fulfilment of the deployments.

Micromodje and Cyan have now commenced discussions on a larger purchase order for smart electricity metering solutions to be deployed within Iran. The Iran Government estimate is 33 million smart electricity meters will be required1.

John Cronin, Executive Chairman of Cyan, commented: "We are delighted to be partnering with Micromodje in Iran, particularly at this historic time following the lifting of economic sanctions against Iran on 16 January 2016. The combined Cyan team from India and the UK exceeded the customer's expectations by deploying the proof of concept pilot in only two days. The order from Micromodje shows its confidence in Cyan's enabling technology and we look forward to working with a highly experienced system integrator to deliver smart metering technology, enhancing the quality of service for energy utilities and customers in Iran."

Mr Goldouzian, Managing Director of Micromodje, commented: "Cyan's capability has been optimised for emerging regions, enabling these markets to address a number of challenges driven by rapid growth and the demand for energy. Its collaborative approach will empower Micromodje with new skills and expertise and we look forward to being part of Cyan's global smart metering eco-system."

Regulatory Confirmation Received

Micromodje has obtained import licenses from various Government institutions and Cyan has obtained regulatory approvals to enable Cyan's CyLec smart metering solutions to be exported and deployed in Iran. As part of the initial project setup, Cyan has sought specialist legal advice on doing business with Iran in order to ensure full compliance with all appropriate international regulations, including the receipt of payments from an Iranian bank. Cyan has ensured that no parties involved in the transaction are on the European Union sanctioned list or the US Office of Foreign Assets Control Specially Designated Nationals list as well as no party being owned or controlled by the Iran Revolutionary Guards Corp. Cyan has also obtained export approval from the UK Government Export Controls Organisation to deliver this initial order from Cyan's wholly owned Indian subsidiary and is now in the advanced stages of acquiring export approval to deliver direct from Cyan UK for future orders.  Following 'Implementation Day' on 16 January 2016 where the International Atomic Energy Agency agreed that Iran has fulfilled its side of last year's landmark nuclear deal, the United States, European Union and United Nations have agreed to the lifting of economic sanctions against Iran. This has now allowed the progression of this order alongside the legal advice and approvals as detailed above having been obtained.

Source:

1 http://www.iransg.com/saba_content/media/image/2015/10/7873_orig.pdf

Enquiries:

Cyan Holdings plc	Tel: [phone]
John Cronin, Executive Chairman	www.cyantechnology.com
Cantor Fitzgerald Europe - Nomad and Broker Andrew Craig / Chris Viggor / Richard Salmond	Tel: [phone]
Beaufort Securities Limited - Joint Broker	Tel:  [phone]
Jon Belliss
Walbrook PR - Financial PR	Tel:  [phone]
Paul Cornelius / Nick Rome	[e-mail]

About Cyan

Cyan provides a communication platform for energy, lighting and emerging applications in the wider 'Internet of Things' network. Its integrated platform and partner collaborations deliver end-to-end solutions that connect millions of devices and support bidirectional communication with the end customer. Cyan's smart metering and lighting solutions enhance quality of service in emerging regions, through power savings, lower operating costs and increased cost efficiency. Our vision to create improved value through Smart City solutions has provided our customers with the foundation upon which to build incremental services as these markets evolve.

For more information, please visit www.cyantechnology.com.

About CyLec®

CyLec® is a complete control and communication network for electricity metering. CyLec® uses wireless technology to enable the collection and delivery of data from and to a meter, such as energy profiles, instant readings and the sending of tariff updates. Priority data can also be sent back to the utilities such as information regarding tampering enabling the utility to take action immediately.

About Micromodje

Micromodje was established in 1991 and has grown at a spectacular rate to become a leading manufacturer and supplier of various types of telecom equipment and services in Iran. It started with the design and production of RF equipment and over the years Micromodje has shifted its activities towards the implementation of turn-key projects working as a general contractor and has successfully executed a number of projects such as the telecommunication system of Imam Khomeini New International Airport.

With a turnover of approximately US$45 million, Micromodje has been recognised as a Grade 1 General Contractor for the production, implementation and commissioning of turn-key telecommunication projects. Recently, one of the companies established by Micromodje (having 40% of its share) was awarded projects of approximately US$320 million as part of the expansion of mobile network in Iran.

For more information, please visit http://micromodje.com/index.htm

 

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