CyanConnode signs its first licensing agreement with Chinese partner
CyanConnode, a world leader in narrowband radio frequency (RF) Mesh Networks, is pleased to announce that it has signed a USD 4M Licensing Agreement with Beijing Jingybeifang Instrument Co., Ltd.
The Licensing Agreement provides Beijing Instruments with the right to use CyanConnode’s reference designs to manufacture Advanced Metering Infrastructure (AMI) including RF mesh network technologies, which Beijing Instruments hopes to supply to its customers.
Beijing Instruments is a well-established meter manufacturer and since 1998, it has been a main supplier to the State Grid Corporation of China. CyanConnode and Beijing Instruments are also pleased to announce that they have agreed to collaborate on sales opportunities outside of China.
According to a report from analyst Navigant Research, China's shipment of smart electric meters hit 130 million units in 2016. They have also calculated that the compound annual growth rate (CAGR) of shipments for the period 2017 to 2021, will be between 3% and 5%1.
This is CyanConnode’s first Licensing Agreement and the terms of the contract grant Beijing Instruments the right to use CyanConnode’s reference designs to manufacture its AMI RF modules and gateways. Beijing Instruments will pay a license fee each time a RF module and/or gateway unit is manufactured, for a total number of modules and gateways over a two year time frame totalling USD 4m.
John Cronin, CyanConnode Executive Chairman, commented: “We are very pleased to announce the Company’s first Licensing Agreement with a new Chinese Partner, Beijing Instruments. CyanConnode can provide licensing packages that support partners’ needs as well as facilitating the localised manufacture of components. As there will be little or no associated development or manufacturing costs, the impact on our resources will be minimal. We look forward to a long and successful collaborative partnership with Beijing Instruments.”
Mr Li Yi, Beijing Instruments General Manager, commented: “TheCyanConnode licensing package enables Beijing Instruments to offer its customers next generation smart meters based on IPv6 standard RF mesh network technologies that are self-forming and self-healing. Beijing Instruments, a State-owned company, is well positioned in the Chinese smart metering market. It is also looking forward to working with CyanConnode in international markets.”
The smart metering market is rapidly evolving and the size of implementations increasing. CyanConnode offers licensing packages that can deliver market-leading technology to support partners’ business models. These licensing packages can provide partners with product that not only outperforms against large and well-known brands, it is also highly reliable with a competitive total cost of ownership.
This signed Licensing Agreement is the high margin license sale opportunity expected in late in 2018, referred to in the Company’s previous announcement of 19 October 2018; the Company is currently taking advice from its auditors regarding revenue recognition in relation to this signed Licensing Agreement.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
CyanConnode is a global leader in Internet of Things (IoT) communications.