Cyan Reports Q2 Loss of $9.1M
PETALUMA, Calif. -- Cyan (CYNI) today announced financial results for its second quarter ended June 30, 2013.
Revenue for the second quarter of 2013 grew 37 percent year-over-year to a record $31.7 million, up from $23.1 million in the second quarter of 2012, and up 20 percent from $26.3 million for the previous quarter. Net loss for the quarter was $9.1 million, or $0.33 per share, compared to a net loss of $1.5 million, or $0.59 per share, in the same period last year and a net loss of $9.4 million, or $3.61 per share, for the first quarter of 2013.
On a non-GAAP basis, Cyan’s net loss for the second quarter was $6.6 million, or $0.24 per share, compared to a net loss of $0.8 million, or $0.30 per share for the same period last year and a net loss of $6.3 million, or $2.43 per share, for the quarter ended March 31, 2013. The non-GAAP net loss for the second quarters of 2013 and 2012 and the first quarter of 2013 exclude stock-based compensation expense and costs associated with the change in the fair value of preferred stock warrants. Effective upon its initial public offering (IPO) in May 2013, the company’s preferred stock warrants became exercisable for common stock and will no longer be marked to market.
The non-GAAP net loss per share for the second quarter of 2013 was based upon 27.4 million weighted average shares outstanding. In connection with its IPO, the company issued 8.9 million shares of common stock and 34.7 million shares of preferred stock converted into common stock. Cyan ended the second quarter with 46.3 million shares of common stock outstanding.
“For the second quarter, Cyan delivered record revenue and gross margin while continuing to make investments to capitalize on our large and growing addressable market,” said Mark Floyd, Cyan’s chairman and chief executive officer. “Our Blue Planet software-defined network (SDN) platform is a key differentiator and continued to gain momentum, with over 85 customers implementing this innovative technology since its launch last December. We continued to make significant strides in our international expansion, increasing our presence to 13 countries outside of North America and increasing our international partnership base. During the second quarter, we successfully completed our IPO and ended the quarter with over $92 million in cash and cash equivalents.”
Floyd continued, “Key drivers for the future include further geographic expansion, penetration into verticals beyond the carrier market, and the broadening of our footprint within existing accounts as well as with new customers. In addition, we see large opportunities among content providers and data center operators and in the second quarter, we received initial revenues from one of the world’s largest Internet franchises. Going forward, we will continue to invest in engineering, sales and marketing to strengthen our competitive position and benefit from the widespread and fundamental transition in how networks are architected, orchestrated and managed.”
Outlook for the Third Quarter, 2013 Please refer to the Forward-Looking Statements section below for cautionary notes.
For the third quarter of 2013, Cyan currently expects revenue to be in the range of $36 million to $38 million. GAAP net loss is expected to be between $8.6 million and $10.0 million, or a net loss per share of $0.19 to $0.22. On a non-GAAP basis, Cyan currently expects its net loss to range between $6.7 million and $8.1 million, or a net loss per share of $0.14 to $0.17 based on an estimated 46.3 million weighted average shares outstanding.
Cyan expanded its Blue Planet SDN platform to include Planet Inventory, a multi-vendor network asset management application.
Cyan formed Blue Orbit, an ecosystem of SDN and network functions virtualization (NFV) providers dedicated to delivering interoperable SDN and NFV solutions.
Cyan demonstrated a live, multi-vendor SDN application (in cooperation with Blue Orbit partners) at Interop Tokyo in June to illustrate how network operators can offer their customers the ability to dynamically spin up data center virtual machines, along with virtualized network resources, via standard APIs or a web portal.
Cyan appointed accomplished marketing professional Joe Cumello as chief marketing officer of Cyan to oversee all aspects of Cyan’s product marketing and global brand development.