cyan with strong growth in the first half of 2019, sets course for revenue and earnings growth in the second half of the year

cyan with strong growth in the first half of 2019, sets course for revenue and earnings growth in the second half of the year

• Total revenues of EUR 7.9 million achieved (H1 2018: EUR 2.2 million; i.e. growth of +268%)
• EBITDA of EUR -1.0 million (H1 2018: EUR -0.7 million) due to the organizational adjustments necessary for the global roll-out and the restructuring of i-new
• Integration of Orange France proceeding according to plan
• Great progress in existing cooperation with Aon, Wirecard and Telecom Argentina
• Revenue forecast of EUR 35 million and EBITDA forecast of EUR 14 million confirmed for 2019

Munich, 31 October 2019 – cyan AG was again able to grow dynamically in the first half of 2019 and at the same time has created the necessary conditions to accelerate business growth even more in the second half of the year. Total revenues rose to EUR 7.9 million in the first six months. The existing revenue forecast of EUR 35 million is confirmed for 2019, boosted by recent progress made in the cooperation agreements with Orange, Aon and Wirecard. In addition, cyan is about to close additional contracts that will have a significant revenue contribution until year end.

Peter Arnoth, CEO of cyan AG: “The global cooperation agreement with Wirecard or the Proof-of-Concept with Telecom Argentina prove that we are on the right track – we will again be able to significantly grow in the second half of the year. In the first half of 2019, the integration and restructuring of i-new demanded a great deal of energy and commitment from us. However, with all our efforts, we have now created the framework for strong organisational growth in the future.”

As part of the integration and restructuring process of i-new, the Brno branch was closed and Global Operations was merged in Sopron. Since mid-July, all Austrian specialists have been working in a new joint headquarters in Vienna. The office building in Mattersburg was sold (after reporting date). The organisation and the management structure in Latin America were completely reorganized. In addition, qualified staff is constantly being hired in all areas, particularly in sales and software development, in order to cope with the large number of new customer projects. Furthermore, a project office was established in Paris to optimise the collaboration with Orange. The costs of the extensive organisational restructuring are reflected accordingly in the financial figures for the first half of the year.

Michel Sieghart, CFO of cyan AG: “We expect a strong second half of 2019, in which the integration measures of i-new will start to bear fruits. Our shareholders also support our strategy. This was also demonstrated by the successful capital increase carried out in July 2019, in which new shares with a total value of EUR 24.9 million were issued. Over the next 12 to 18 months, these funds will be invested in accelerated customer acquisition on the one hand, and the consistent expansion of the organisation and research & development on the other hand. We are also proud to present our consolidated half-year report as a complete IFRS financial statement for the first time. This is an important step towards our planned uplisting to the Prime Standard.”

Progress in projects with existing business partners

Following the conclusion of the contract with Orange in December 2018, the implementation of cyan’s software in the French network is in the final phase. All customer budgets for the product launch in France have been approved. Initial revenues are expected this year. Parallel to the implementation in France, market entry is also being prepared in other countries, both in Europe and in Africa.

As part of the cooperation with Aon, important steps have been taken in recent months. cyan’s cybersecurity products are currently being integrated into a newly designed mobile app and will then be offered to end customers via Aon’s sales channels.

The current Proof of Concept with Telecom Argentina is also promising. A full cybersecurity product portfolio is planned to be offered to Telecom Argentina’s 20 million end customers – a similar cooperation structure to that of Orange.

Our existing partnerships with MVNO Services as well as with Magenta Telekom (formerly T-Mobile Austria) are also developing successfully. At the latter, the current contract in place could be extended ahead of schedule until end of 2022.

Patent granted for cyan analysis method

In September 2019, the patent for an important analytical procedure at the European Patent Office was granted. The proprietary software, which utilises the sandboxing process, simulates human behaviour on a potentially malicious website, loads its specific content, performs imitated user interactions in real time and thereby analyses script actions and bidirectional communication paths.

Markus Cserna, CTO: “This highly scalable analysis method is both scientifically and strategically a big leap for the further development of our security solutions and thus for the best possible protection of end customers in mobile and fixed network infrastructures.”
 

Note: The consolidated half-year report is available for download at https://cyan.ag/publikationen/finanzberichte.

About cyan

cyan (XETR:CYR) is a leading global provider of intelligent, white labeled IT security solutions and telecom services with more than 15 years of experience in the area of IT security. The main business areas of the company are cyber security solutions for the end customers of mobile network operators and fixed line internet service providers (MNO), mobile virtual network operators (MVNO) as well as for the banking sector and insurance companies. cyan’s solutions are integrated into the business partner’s infrastructure and then offered under its own name (“white labeled”) to its end customers (“B2B2C”).

Today, the group has more than 50 international customers, through whom cyan’s products are sold to around 8 million end customers. cyan offers a service along the entire value chain, from the platform to data optimization and cyber security. The company also operates its own research & development center with the goal of recognizing trends in the industry at an early stage and to create the best possible product solutions. In December 2018 cyan has concluded a global group contract with Orange for its cyber-security solutions. Cooperation partners include Aon, the world’s leading insurance broker, and the payment service provider Wirecard.

Further information is available at www.cyansecurity.com

Investor Contact

Florian Rukover, Head of IR
cyan AG

[email protected]

Press Contact

Frank Ostermair
Better Orange IR & HV AG

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