Light Reading

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 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

 
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?