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Mayan Finds a Customer

Finally, Mayan Networks Inc. has some good news to talk about. The company, which has been around almost as long as Cerent (bought by Cisco Systems Inc. [Nasdaq: CSCO] back in 1999) announced today its first real customer, NTT ME, a subsidiary of the Japanese carrier NTT Corp.

Analysts seem split on how much of an impact the NTT deal could have on the company, in light of the fact that Mayan told employees last week it had to downsize its workforce to cut costs (see Mayan Ruins?).

“I think it’s significant that they could close NTT, given the fiber-rich market that Japan has,” says Chris Nicoll, vice president at Current Analysis. “As long as the deal is not a fluke and it's part of a strategy, then it’s a positive for the company.”

So what could be wrong with a customer win? For one, the amount of the contract has not been disclosed, which makes it hard to evaluate how much business it will generate for the company. Secondly, the products shipped were through a reseller channel and not for a direct sale. Although it is common for Asian and European carriers to sell equipment on behalf of the manufacturers, it’s not an ideal money-making proposition for startups, says Scott Clavenna, president of PointEast Research LLC and director of research for Light Reading.

“Sometimes those reseller agreements don’t result in much of anything,” he says. “They aren’t using their own sales force, and their margins don’t tend to be as good.”

Some analysts contest this point of view, arguing that NTT is a tier-one player in the world market and getting a foothold there could be just what Mayan needs to get itself back on track.

“The benefit of selling through NTT is that services are bundled in with the Mayan units, so that NTT can show a stronger revenue model than if they were just selling equipment,” says Nicoll. “And Mayan benefits from the NTT name in Japan. Overall, not a bad deal.”

But even Nicoll has his reservations. "The real measure, though, is when revenue shipments start and how quickly they ramp up," he says.

-- Marguerite Reardon, senior editor, Light Reading http://www.lightreading.com

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opti fool 12/4/2012 | 8:48:23 PM
re: Mayan Finds a Customer

Near's team is still trying to get the zaffire product out of the lab.
test1234 12/4/2012 | 8:48:22 PM
re: Mayan Finds a Customer Does anyone know if Zaffire actuly have a product? or is it Vaporware?
birdieking 12/4/2012 | 8:48:20 PM
re: Mayan Finds a Customer OPTIFOOL AND TEST 1234,

LETS NOT CLUTTER MAYAN'S NEWS WITH YOUR EMOTIONAL B.S....INSTEAD OF TAKING POT SHOTS WITHOUT KNOWING THE FACTS, WHY DON'T YOU JUST COMMENT ON THE CONTENT OF THE ARTICLE. IT IS OBVIOUS THAT YOU HAVE A HAIR ACROSS YOUR ASS ABOUT ZAFFIRE AND ARE SPEAKING WITHOUT A POINT OF REFERENCE OTHER THAN THE NEGATIVE COMMENTS MADE BY FELLOW INGNORANT MESSAGE BOYS....GET A GRIP ON REALITY, TAKE A VALIUM, AND BREATH DEEPLY....YOUR ANGER WILL ABATE MORON
westmoreland 12/4/2012 | 8:48:19 PM
re: Mayan Finds a Customer
Too little too late. Everything these companies do publicly smacks of DESPERATION in this market, the world's worst cologne. The casket makes such a racket as it slides down into the hole...
opti fool 12/4/2012 | 8:48:18 PM
re: Mayan Finds a Customer

AND IF ZAFFIRE COULD KEEP UP WITH MAYAN...
birdieking 12/4/2012 | 8:48:16 PM
re: Mayan Finds a Customer I AM SURE THEY ARE DOING JUST FINE.....GO TO ANOTHER ARTICLE AND SPIT OUT YOUR EMOTIONAL COMMENTS....
StartUpGuy1 12/4/2012 | 8:48:11 PM
re: Mayan Finds a Customer If you look at the Mayan web site, under the investors section, you will see NTT under the corporate investment section.

NTT is an investor in Mayan.

Can you spell "Williams and Sycamore" or "Avici and ATT"?


Just one investor trying to help from losing their entire investment.

Call me when they win a deal from someone that is not a financial backer of the company....
zaff 12/4/2012 | 8:48:10 PM
re: Mayan Finds a Customer This deal with NTT is no better than the deal Zaffire did with UTStarcom for China back in Septemeber, or Kanematsu in Japan. At least there the dollar amount was disclosed on the UTStarcom commitment. Zaffire has been shipping product there for about 3 months, and the product is already fully deployed. It is very easy for someone to check the facts on this, and I challange the Lightreading editors to confirm this. I don't claim this is a really big deal, but I suggest other startups don't throw stones form glass houses. Personally I wish well to Mayan and the people there and congratulate them on some positive news. I am sure it is the just the fringe posters that poorly represent them.

Since I am clearly affiliated with Zaffire, please spare the post pointing this out.


Press releases on UTStarcom
http://www.zaffire.com/press_a...

http://www.utstarcom.com/ir/in...

also have similar arrangement with Kanematsu for Japan....

http://www.zaffire.com/press_a...

http://www.kanematsu.co.jp/eng...
flanker 12/4/2012 | 8:48:10 PM
re: Mayan Finds a Customer At least Mayan has a customer, which is more than you can say for the bozos at Zaffire.

I feel sorry for the CFO that OKs a Zaffire acquisition in this market.


perry1961 12/4/2012 | 8:48:08 PM
re: Mayan Finds a Customer If Mayan has the superior technology AND the price is right,then the Zaffire/Mayan debate will be short-lived.Their web site certainly makes those claims.
Can't put my finger on why so many folks seem to hate Zaffire so passionately.Maybe just fear....
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