cyan AG publishes quarterly statement for the third quarter of 2022

Munich, November 24, 2022 – cyan AG, a leading European and global provider of intelligent cybersecurity solutions and BSS/OSS platform services for the telecommunications industry, today published its quarterly statement for the third quarter of 2022. In the first nine months of the year 2022, revenues increased to EUR 6.1 million (9M 2021: EUR 5.9 million). Revenues were mainly recurring in nature and the increase resulted from the Cybersecurity segment. The implemented cost savings from the strategic transformation phase of the company were already clearly reflected in EBITDA, which improved from EUR -10.5 million in the same period of the previous year to EUR -5.0 million in 2022. Net income amounted to EUR -5.1 million (9M 2021: EUR -11.8 million) resulting in earnings per share of EUR -0.36 (9M 2021: EUR -1.19).

"The transformation process at cyan AG is having an impressive effect with the significant improvement in EBITDA and operating cash flow compared to the previous year and reflects the cost discipline we have gained this year. Operationally, we have advanced important projects and continued to develop the company," said Frank von Seth, CEO of cyan AG. "We still have some substantial milestones ahead of us, both in terms of the deeper strategic positioning of our segments and our existing and future customers. We have already laid the foundation for a sustainably operating cyan AG."

Operating cash flow after three quarters of 2022 was EUR -3.2 million, compared to EUR -6.5 million in the same period last year. In the third quarter, operating cash flow was EUR -0.2 million. The proceeds from the capital increase carried out in September 2022 were not booked until the fourth quarter, which resulted in net debt to grow temporarily to EUR 5.8 million (Dec. 31, 2021: EUR 4.2 million).

The strategic process and project changes initiated at the beginning of the year are not only showing their effect in the key financial figures, but also at the operational level. Significant milestones were achieved in the third quarter. In the Cybersecurity segment, the technical implementation with the new partner OTE was completed in just six weeks, enabling sales of the new tariffs with included Cybersecurity to start in the fourth quarter. The projects with T-Mobile and Claro were also driven forward with a perspective to launch soon.

In the BSS/OSS segment, the multi-country and multi-MNO mobile virtual network operator (MVNO) MTEL commenced operations in Switzerland, including the opening of its first Swiss store. Preparations for the launch in Germany ran in parallel. The collaboration with Viasat to connect underserved and hard-to-reach areas represents a validation of the platform's high quality and wide range of use cases beyond MVNOs. These, existing and further new, partnerships result in significant revenue potential for the remaining months of 2022. Thus, cyan is generally well positioned for the fourth quarter and the coming periods, albeit dependent on external factors, and is steadily moving towards its goal of operating sustainably.

The quarterly statement for the third quarter of 2022 including key figures (unaudited) is available for download at https://ir.cyansecurity.com/publications/.

About cyan
cyan AG (XETR: CYR) is a leading, globally active provider of intelligent cyber security solutions and platforms (BSS/OSS) for telecom companies with more than 15 years of experience in the IT industry. The company's main business areas are IT security solutions for end customers of mobile and fixed network internet providers (MNO, ISP), mobile virtual network operators (MVNO) and financial service providers. The solutions provided by cyan are integrated as white label product into the infrastructure of the business partners, who then offer them to their end customers in a B2B2C model, under their own brand.

Today the group has numerous international customers, through which cyan’s products are distributed to end customers. In the process cyan can offer a range of solutions along the entire value chain from platform, data optimization to cybersecurity. In addition, cyan operates its own research & development center with the aim of identifying industry trends at an early stage and developing optimal product solutions. Besides Orange, cyan's customers include among others Claro Chile (América Móvil Group), dtac (Telenor Group) as well as the telecom group Magenta (T-Mobile). Further information is available at: www.cyansecurity.com

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