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Cyan's Not Blue Over NYSE Debut

Ray Le Maistre

Packet-optical transport and software-defined networking (SDN) system specialist Cyan Inc. recovered from a shaky start on its New York Stock Exchange (NYSE) debut Thursday to record a first day gain. Cyan joined the market at $11 per share but slid to almost $10 in early trading. However, the price recovered and by mid-afternoon was trading up nearly 1.4 percent at $11.15. "We're very pleased with our first day, especially as technology companies have had a hard time during the past few days," said chief marketing officer Joe Cumello, who is gearing up for a major staff party in Petaluma, Calif., Friday to celebrate the listing (we're hoping for pictures). The company's IPO follows a stellar 2012, during which the company more than doubled its revenues to record annual sales of $95.9 million. During the first quarter of this year, it achieved revenues of $26.3 million, almost double the sales from a year earlier. It still has a way to go before becoming profitable, though -- it reported an operating loss of $11.2 million for 2012 -- and the company isn't currently giving projections for when it might report quarterly profits. But it has momentum. And it has a track record in SDN development, which counts for a lot of positive goodwill these days. (See Cyan Spins 'Blue Planet' for SDN.) And it also has the proceeds from the IPO, which amount to around $78 million. Cumello says that money will be used to scale the business further. Maybe, though, just a small part might go toward Friday's party … — Ray Le Maistre, Editor-in-Chief, Light Reading

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User Rank: Light Beer
5/10/2013 | 5:38:30 PM
re: Cyan's Not Blue Over NYSE Debut
Not really a mixed bag of results, I have always found the product to be really strong and placed it many places. The real issues are - 1) they sought $110 million and seem to require $78 mill 2) use of proceeds will need to do more than Z series, Blue and Pro products to make them a stand-alone vendor. Let's see what they do in next two years with the proceeds, penetration in Blue and Pro products. I am hopeful because their optical switching always performed well and the teams have been hardworking.
User Rank: Light Beer
5/10/2013 | 4:38:52 PM
re: Cyan's Not Blue Over NYSE Debut
its a very tough market for new issues I understand, the big money wants larger cap stocks, so a positive debut is probably a good result.
Craig Matsumoto
Craig Matsumoto,
User Rank: Light Sabre
5/10/2013 | 3:44:11 PM
re: Cyan's Not Blue Over NYSE Debut
I'm sure Cyan's investors are happy with having gone public. But +1.4% isn't exactly the stuff of IPO dreams.

I guess we could celebrate that any transport-equipment startup went public, let alone an optical one. How long are they going to lose money, though?
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