Optical transport systems and software-defined networking (SDN) company Cyan (NYSE: CYNI) reports it exceeded revenue projections in its fiscal first quarter ended March 31, 2014. Company management projected revenues for the current quarter would be even better and touted SDN evaluation progress with a pair of Tier 1 carriers.
Cyan reported revenue of $19.0 million for the quarter, $1 million more than the top end of its guidance of $16 million to $18 million. However, the quarter’s figure was significantly below the $26.3 million earned in the first quarter of 2013 and slightly below the $20.9 million it received in the fourth quarter of 2013.
The $17.8 million ($0.38 per share) GAAP net loss for the quarter also compared unfavorably with the year-ago quarter (which had a GAAP net loss of $9.4 million, or $3.61 per share) and the previous quarter (with a GAAP net loss $13.7 million, or $0.29 per share). On a non-GAAP basis, things of course looked brighter: a net loss for the quarter of $15.3 million ($0.33 per share).
The use of $14.877 million of net cash in operating activities in the quarter left Cyan with $16.466 million in cash and equivalents and $30.387 million in marketable securities at its disposal. However, CFO Jeffrey Ross told analysts on a conference call May 6 that the company expects to use significantly less cash in the second quarter and should have enough cash to support operations for at least the next 12 months.
On the same call, Cyan Chairman and CEO Mark Floyd reported that the company’s Blue Planet SDN platform was in trials with four Tier 1 carriers. He said the platform had passed "important milestones" in two of these evaluations. Floyd added he expected the first vendor selections for what he termed "major SDN and NFV initiatives" would be announced later this year.
While Floyd said he wasn’t expecting to receive revenue from any such wins until next year, he and the rest of Cyan management were confident that business would pick up in the current quarter. Cyan is forecasting revenues to fall between $21 million and $23 million. Such performance would translate into a non-GAAP net loss of $13 million to $15 million, with net loss per share between $0.28 and $0.32.
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