Cyan bumps up fourth quarter revenue estimate

Cyan (NYSE:CYNI) expects to get 2015 off to a good start by announcing better than expected revenues when it reports the results of its fiscal fourth quarter on February 18. The provider of packet-optical transport systems and software-defined networking (SDN) platforms says it will exceed the top end of its revenue guidance by at least $4 million.

The company originally guided revenues for the quarter ended December 31, 2014 to fall between $24 million to $26 million, slightly down from the $26.6 million it recorded in the fiscal third quarter. The company now says it will report revenues between $30 million and $31 million for the year's final quarter.

"Fourth quarter revenue outpaced our initial expectations due to strong demand for our Z-Series packet-optical hardware for both metro and regional 100G and packet applications," said Mark Floyd, Cyan's chairman and CEO. "We continue to believe that in the first half of 2015 we will convert some of our SDN and NFV trials into wins. Between the growing traction for our Z-Series hardware and the accelerating commercial interest we are seeing for our SDN and NFV software, we are excited about our role as the supplier of choice for critical network transformation technology. We look forward to sharing more details when we announce our full fourth quarter and 2014 results."

Cyan announced a pair of contract wins during the quarter. In November, the company revealed that it will supply both its Z-Series optical transport hardware and Blue Planet SDN platform to KVH of Japan. The carrier will use the technology to upgrade backhaul links from a pair of its cable landing stations (see "KVH taps Cyan for 100G submarine network backhaul"). Last month, Cyan announced that top customer Windstream will use its systems to upgrade its regional networks (see "Windstream adds 100G to regional metro networks with Cyan").

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