Light Reading
Cyan CEO Mark Floyd says Cyan has one of its biggest orders ever on the horizon.

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. (NYSE: 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 Telecom 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
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

 
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed