& cplSiteName &

Mystery Customer Deals Big Order for Cyan

Dan O'Shea
8/12/2014
50%
50%

Packet optical vendor Cyan reported on it second-quarter earnings call late Monday that it had surpassed revenue expectations for the quarter, but Cyan CEO Mark Floyd was already looking ahead.

After company officials quickly ran through their second-quarter numbers, Floyd disclosed that Cyan Inc. recently received one of its largest orders ever, totaling more than $10 million, from an existing customer for its Z-Series 100G packet optical platform and Blue Planet orchestration software. He did not say who the customer was, and said the revenue would not be realized until the first quarter of 2015.

Cyan's largest customer on a quarter-to-quarter basis is Windstream Communications Inc. (Nasdaq: WIN), and its quarterly results in the past have fluctuated based on Windstream's spending patterns. During the second quarter, Cyan said revenue from Windstream was greater than had been expected, about $6.7 million of the vendor's $24.4 million total revenue for the quarter. (See Cyan Packs One-Two Product Upgrade Punch and Cyan Reports Q2 Revenue Uptick.)

However, the mystery customer also could be Colt Technology Services Group Ltd (London: COLT), which uses Cyan as part of its Carrier Ethernet Multi-Service Platform (MSP), a service which won a 2014 Leading Lights award. Or, what about Japanese operator KVH Co. Ltd. ? Cyan has in fact been finding increasing success in international markets. Company officials said Monday that international sales were up 15% during the second quarter versus the first quarter, and that the third quarter could see more of the same. (See Colt Wins Leading Lights Innovative Ethernet Service Award , Colt a Significant Win for Cyan and Cyan's Blue Planet Now in KVH's Orbit.)

There are a number of customers that possibly could be behind the order, though some of Cyan's customers are small telcos that are not likely to commit to that large an order. The Tier 3 telcos have been a source of some market softness for Cyan recently, Floyd said, though in the long term he believes Connect America program funds will stir spending at that level of the market.


Want to know more about SDN? Check out our dedicated SDN content channel here on Light Reading.


Meanwhile, Floyd also boasted that Cyan had recently demonstrated its Blue Planet platform working in tandem with the hardware of a major equipment vendor. The platform proved itself "automating, managing and orchestrating several of [the unnamed vendor's] hardware systems," Floyd said. He said the successful demonstration could create a significant global market opportunity for Cyan.

— Dan O'Shea, Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
brooks7
100%
0%
brooks7,
User Rank: Light Sabre
8/12/2014 | 2:59:27 PM
Re: 1 Problem with that order
MGoBlue,

I am simply pointing out that by their financials that they announced yesterday and their guidance that they are out of cash in 6 months.  The order is due to ship in Q1 15 according to the call.  Which is too late.

I have a lot of friends at Cyan and worry about what will happen to them.  Even in this past quarter OPEX exceeded Revenue.

seven

 
MGoBlue
100%
0%
MGoBlue,
User Rank: Lightning
8/12/2014 | 12:37:40 PM
Re: 1 Problem with that order
Sounds like you are a bit jealous of their success and innovation. Did your past start up flame out? Maybe you needed a better product or better management. Cyan has a team of studs. Don't worry about them, they will be just fine. Also, nice try trying to pose as brookseven who wouldn't write anything as childish. What a tool. Good luck poser.
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
8/12/2014 | 10:49:07 AM
1 Problem with that order
Dan,

You did notice that the order will ship AFTER Cyan runs out of money.

seven

 
Featured Video
From The Founder
The 'gleaming city on a hill,' Steve Saunders calls it. But who is going to take us from today's NFV componentry to the grand future of a self-driving network? Here's a look at the vendors hoping to make it happen.
Flash Poll
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 10, 2017, The Westin Times Square, New York, NY
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Could the Connected Car Help Prevent Terrorism?
Dan Jones, Mobile Editor, 9/15/2017
Could 5G Have Found Its Glass Ceiling?
Dan Jones, Mobile Editor, 9/20/2017
Cities Slam FCC on Broadband Proceedings
Mari Silbey, Senior Editor, Cable/Video, 9/15/2017
1 Million Pirate Set-Top Boxes Sold in the UK
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 9/20/2017
Comcast Shuts Down OTT Again
Mari Silbey, Senior Editor, Cable/Video, 9/19/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed