Stock market laps up Cyan’s potential in China
Cyan Holdings plc (CYAN.L), the fabless semiconductor company specialising in developing low powered, configurable microcontroller chips, said today when releasing its interim results that it was on the verge of significant commercial success.
It said the announcement at the end of August that its new 16 bit eCOG1X microcontroller had been released into its production stage marked “a sea change” in the Cambridge-based firm’s evolution.
“For the first time we will be able to supply customers with a full product range for 16 bit solutions and this has already been welcomed by existing customers; even more importantly, it should have a positive impact with those potential customers who wanted a larger and more flexible product range available before committing to using Cyan chips”, CEO Paul Johnson (pictured) said.
Broader range
Cyan can now deliver across a much broader range of performance, power consumption and prices, which enables it to compete in more markets, including motor control and instrumentation, and it expects a major contribution to revenues in 2007 from design wins, opportunities and sales within this extended market.
"We have seen tremendous potential in China and are buoyed by our solid relationships throughout the area”, Mr Johnson said. “Our eCOG1X product range will generate significant business in Europe and Asia as demonstrated by early stage design wins and opportunities. We look forward to continued and increasing success in Asia."
Not only is Cyan confident that the launch of the eCOG1X will be positive for growth, it is seeing the benefits of being a listed company with greater access to larger, well-established companies.
While for commercial reasons it could not be specific, it said it is now “in active dialogue” with five of the World's largest and best-known consumer electronic companies of which four are based in Asia and the other is in the US.
The stock market liked what it heard, marking up its share price up almost 15% to 14p, valuing the company at nearly £12m.
Interim result
Turnover for the six months ended 30 June 2006 was £60,000 and the company earned interest of £102,000.
Its operating loss of £1.4m was in line with budget. Its cash balance was £4.3m.
“We look forward to exploiting the potential of the new product range over the course of the final quarter of 2006 and beyond,” Mr Johnson said.
28th September 2006
