3rd Jul 2007 07:01
Cyan Holdings Plc03 July 2007 Press Release 3 July 2007 Cyan Holdings Plc ("Cyan" or "the Company") First Production order for China Telecom Cyan Holdings plc (AIM: CYAN.L) the fabless semiconductor company specialisingin the development of low powered, configurable microcontroller chips is pleasedto announce that it has received the first production order for eCOG1K chips fora new product being launched by China Telecom. Cyan's customer has designed a special pay-phone using smartcards which alsoacts as a clocking in and out terminal and will be installed in factoriesthroughout China. The pay-phone will be used by migrant employees working infactories for calls home to their families. A range of extended features arealready planned for future models of this payphone. China Telecom is the largestfixed-network service provider in China and has been conducting field trials ofthe pay-phone for several months. China Telecom plans to introduce thesepay-phones with a range of financial incentives for factory owners to acceleratepenetration and to maximise market share. Deployment of pay-phones has commencedin Fujian, Jiangsu and Zhejiang provinces, and will extend to a total of sixprovinces across China. Whilst the initial quantities are modest, less than 10,000 units, these arescheduled to be delivered monthly representing the first three months of aproduction ramp which commences in September. Kenn Lamb, Chief Executive Officer of Cyan, commented: "Although initial orderquantities are modest compared to the market opportunity as understood by Cyan'smanagement, we are encouraged by this first production order followingsuccessful field trials and are working with our customer on the development ofnext generation pay-phone systems that offer a greater range of revenuegeneration opportunities for China Telecom." The Board is confident that the Company is making progress towards the objectiveoutlined at the AGM of delivering steady and stable growth going forward. TheBoard of Cyan does not believe that the fall in the share price of the Companyin the two months since the AGM reflects that progress. The current marketcapitalisation of the Company is, in the opinion of the Board, more appropriateto a development-stage company that has yet for instance to complete workingsilicon. Cyan by contrast has a new microcontroller family being activelymarketed and an existing product which has achieved revenues. The Board expectsthat the Company will be able to announce further developments in the remainderof this year that will demonstrate the progress that the Company is making. For further information: Cyan Holdings plc Kenn Lamb, CEO Tel: +44 (0) 1954 234 400 Andrew Lee, Finance Director www.cyantechnology.com Collins Stewart Limited Simon Atkinson, Corporate Finance Tel: +44 (0) 20 7523 8300 www.collins-stewart.com Media enquiries: Abchurch Communications Heather Salmond/ Franziska Boehnke Tel: +44 (0) 20 7398 7700 [email protected] www.abchurch-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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