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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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drag 12/4/2012 | 8:47:46 PM
re: Mayan Finds a Customer selling to your friends is selling to your friends. selling to your investors can sometimes be an easy way to cut your own throat. Any bad press from the deal in future and thus begins the downhill slide...

buy hey some runs on the board are better than none. investors or not.
katch 22 12/4/2012 | 8:48:02 PM
re: Mayan Finds a Customer Why is laundering revenue through Asian companies in Zaffire's case the same as Mayan dealing with a tier one player like NTT?
alexchilton 12/4/2012 | 8:48:05 PM
re: Mayan Finds a Customer "Not to mention the fact that selling to NTT is like selling to ATT or Cable & Wireless or Deutsche Telekom. "

The carrier did not buy these boxes. Read the artical, and the press release. This is a reseller agreement. It may be a great thing for Mayan, and it may lead to sales, but it's nothing more than a reseller buying boxes.

However, the press seems to be effective.

Alex.
zaff 12/4/2012 | 8:48:06 PM
re: Mayan Finds a Customer There is zero competative aspect between Zaffire and Mayan. The article you mentioned is obviously mistaken on the competative landscape. Zaffire is core metro DWDM, Mayan is multi-service SONET access. They are even working together on a roadshow to provide complete customer solution for metro and access. Companies usually do not bring their competitors to customer road shows....

http://events.emarksolutions.c...
perry1961 12/4/2012 | 8:48:06 PM
re: Mayan Finds a Customer Both are in metro transport/provisioning.ONI is there too.Here's an article mentioning the two as competitors.
http://www.security-informer.c...

From what I've seen so far,Zaffire will be the clear winner when the dust and hype settles.The carriers certainly won't take an opinion poll at lightreading.com before making their decisions...
flanker 12/4/2012 | 8:48:07 PM
re: Mayan Finds a Customer Well, they are not even in the same space but I believe we're talking human factors here, not just the product.



ubwdm 12/4/2012 | 8:48:07 PM
re: Mayan Finds a Customer "The Mayan box can probably survive a nuclear strike."

Just heard that Mayan started thermal
testing a few weeks ago.

Amazing.
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....
flanker 12/4/2012 | 8:48:08 PM
re: Mayan Finds a Customer Not to mention the fact that selling to NTT is like selling to ATT or Cable & Wireless or Deutsche Telekom. Talk about homologation issues!

The Mayan box can probably survive a nuclear strike.

flanker 12/4/2012 | 8:48:08 PM
re: Mayan Finds a Customer The Mayan sale is to a bona fide carrier, whether investor or not. The Zaffire kanmatsu deal looks like a reseller agreement.
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