Welcome!

FinTech Journal Authors: Harry Trott, Pat Romanski, Liz McMillan, Yeshim Deniz, Elizabeth White

News Feed Item

Cyan Reports Second Quarter 2014 Financial Results

Cyan (NYSE: CYNI), a leading provider of SDN, NFV, and packet-optical solutions for network operators, today announced financial results for its second quarter ended June 30, 2014.

Revenue for the second quarter of 2014 exceeded prior guidance of $21 million to $23 million and reached $24.4 million. This compares to $19.0 million for the first quarter of 2014 and $31.7 million in the second quarter of 2013. GAAP net loss for the second quarter was $14.7 million, or $0.31 per share, compared to a net loss of $17.8 million, or $0.38 per share, in the first quarter of 2014 and $9.1 million, or $0.33 per share, in the same period last year.

On a non-GAAP basis, Cyan's net loss for the second quarter was $11.9 million, or $0.25 per share. This compares to a non-GAAP net loss of $15.3 million, or $0.33 per share, in the first quarter of 2014 and a non-GAAP net loss of $6.6 million, or $0.24 per share, in the same period last year. Both GAAP and non-GAAP net loss per share figures for the second quarter of 2014 are based on 46.9 million basic weighted average shares outstanding. Please refer to the attached financial statements for additional non-GAAP information and a reconciliation of GAAP to non-GAAP results as well as information regarding weighted average shares outstanding in each period.

“In the second quarter we remained focused on our key initiatives, announced several new customer and partner collaborations and launched Planet Orchestrate, a significant new addition to our Blue Planet SDN and NFV platform,” said Mark Floyd, Cyan’s chairman and chief executive officer. “We are pleased with our execution this quarter and with the momentum we see in the market.

“Service providers continue to advance their initiatives to transform their networks with SDN and NFV technologies. With the Blue Planet Platform, we believe Cyan is well positioned in the market and has a unique, first mover advantage in helping customers orchestrate both network and virtualized resources across multi-domain, multi-vendor networks," continued Floyd.

Second Quarter Highlights

  • Launched Planet Orchestrate – The industry’s first orchestration application that integrates Cloud Services, NFV, and WAN in multi-vendor and multi-domain networks. Unlike other siloed solutions on the market, Planet Orchestrate, an application for Cyan’s Blue Planet SDN Platform, combines the power of WAN service creation and automation with the orchestration of virtual resources – creating a software-defined engine for revenue generation in carrier networks.
  • Certes, the leader in multi-layer encryption solutions for high performance networks, and Fortinet, a global leader in high-performance network security, joined Blue Orbit, an ecosystem of partners focused on delivering real-world, multi-vendor SDN and network functions virtualization (NFV) applications.
  • With Blue Orbit partners Certes, Fortinet and RAD, Cyan demonstrated how Blue Planet can orchestrate multi-vendor distributed NFV in an official ETSI proof of concept (PoC) sponsored by Tier 1 service provider -- CenturyLink.
  • Collaborated with Telefónica and Red Hat to develop a deterministic NFV architecture to support the intelligent placement of virtualized network functions (VNFs). Cyan is delivering the NFV orchestrator that will make use of OpenStack enhancements developed by Red Hat in close collaboration with Telefónica.

Conference Call

Cyan will host a conference call for analysts and investors to discuss its second quarter 2014 results as well as guidance for its third quarter of 2014 today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To access the live call, please dial 1-888-364-3108 (US or Canada) or 1-719-325-2435 (international) and use the password: Cyan. A telephonic replay of the call will be available from approximately two hours after the call until 5:00 pm Eastern time on August 25, 2014, and can be accessed by dialing 1-888-203-1112 or 1-719-457-0820 and entering passcode 3977393#. A live audio webcast of the conference call also will be available from the Investors section of the company's website, www.cyaninc.com. Following the webcast, an archived version will be available on the website for 90 days.

Use of Non-GAAP Financial Information

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net loss and non-GAAP net loss per share. We use this information in managing our business and believe the non-GAAP data are helpful in understanding our past financial performance and future results. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "GAAP to Non-GAAP Reconciliation." Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. As noted in the accompanying reconciliation, non-GAAP results exclude the effects of stock-based compensation. We use stock-based compensation to attract and retain employees and executives with the goals of aligning their interests with those of our stockholders and long-term employee retention. We exclude stock-based compensation expense from our non-GAAP metrics because it varies for reasons that are generally unrelated to operational decisions and performance in any particular period. In addition, non-GAAP results exclude the effects of preferred stock warrants that were converted in connection with our initial public offering. Upon completion of our initial public offering, our preferred stock warrants were converted to common stock and common stock warrants, and we no longer incur expenses associated with the preferred stock warrants. We have excluded these expenses from our non-GAAP metrics given that they fluctuated based on our valuation as a private company prior to going public and were discontinued upon completion of our IPO.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to statements relating to industry momentum for SDN and NFV solutions and Cyan’s positioning to take advantage of the industry momentum. Forward-looking statements made are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and involve a number of risks and uncertainties. Actual results and timing of events could differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: the rate of market adoption of SDN and NFV solutions in general and the adoption rate of our products, particularly our Blue Planet platform; our ability to capitalize on our technological leadership in SDN and NFV; and other risks and uncertainties related to our business. Further information on these risks and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the quarter ended June 30, 2014 and our Form 10-K that we filed for the year ended December 31, 2013. These documents are available on the SEC Filings section of the Investor section of our website at investor.cyaninc.com. All forward-looking statements in this press release are based on information available to us as of the date hereof. We undertake no obligation to revise or update these forward-looking statements in light of new information or future events, other than as required by law. Results reported herein should not be considered as an indication of future performance.

About Cyan

Cyan (NYSE: CYNI) enables network transformation. The company's software-defined network (SDN) solutions deliver orchestration, visualization, and scale to networks that, until now, have been static and hardware driven. Serving carriers, enterprises, governments, and data center operators globally, Cyan's open platforms provide multi-vendor control and visibility to network operators, making service delivery more efficient and profitable. Cyan solutions include Blue Planet SDN software, Z-Series packet-optical transport platforms. For more information, please visit www.cyaninc.com or follow Cyan on Twitter at http://twitter.com/CyanNews.

     

Cyan, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 
Three Months Ended June 30, Six Months Ended June 30,
2014     2013   2014     2013  
Revenue $ 24,392 $ 31,686 $ 43,430 $ 58,005
Cost of revenue 14,268   17,936   25,883   33,338  
Gross profit 10,124 13,750 17,547 24,667
Operating expenses:
Research and development 9,620 8,158 19,092 15,397
Sales and marketing 11,331 10,821 22,360 18,838
General and administrative 3,711   3,095   8,274   5,958  
Total operating expenses 24,662 22,074 49,726 40,193
Loss from operations (14,538 ) (8,324 ) (32,179 ) (15,526 )
Interest expense (42 ) (136 ) (89 ) (262 )
Other income (expense), net (49 ) (607 ) (111 ) (2,608 )
Total other expense, net (91 ) (743 ) (200 ) (2,870 )
Loss before provision for income taxes (14,629 ) (9,067 ) (32,379 ) (18,396 )
Provision for income taxes 43   21   93   42  
Net loss $ (14,672 ) $ (9,088 ) $ (32,472 ) $ (18,438 )
Basic and diluted net loss per share $ (0.31 ) $ (0.33 ) $ (0.69 ) $ (1.22 )
Weighted-average number of shares used in computing basic and diluted net loss per share 46,882   27,425   46,760   15,077  
   

Cyan, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 
June 30, 2014 December 31, 2013
Assets
Current assets:
Cash and cash equivalents $ 13,211 $ 32,509
Marketable securities 25,553 31,639
Accounts receivable 13,131 14,558
Short-term lease receivable 201
Inventories 13,057 20,746
Deferred costs 3,768 8,286
Prepaid expenses and other 3,297   1,378  
Total current assets 72,017 109,317
Long-term lease receivable 403
Property and equipment, net 11,299 11,155
Other assets 643   645  
Total assets $ 83,959   $ 121,520  
Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable $ 5,068 $ 8,474
Accrued liabilities 5,606 3,786
Accrued compensation 4,212 4,895
Term loan, current portion 1,635 1,604
Deferred revenue 10,781 17,516
Deferred rent 117 115
Other liabilities 290   734  
Total current liabilities 27,709 37,124
Term loan, non-current portion 2,571 3,396
Deferred revenue 1,348 1,577
Deferred rent 431   486  
Total liabilities 32,059 42,583
 
Stockholders’ equity (deficit):
Preferred stock
Common stock 5 5
Additional paid in-capital 211,665 206,300
Accumulated other comprehensive income (loss) (16 ) (86 )
Accumulated deficit (159,754 ) (127,282 )
Total stockholders’ equity (deficit) 51,900   78,937  
Total liabilities and stockholders’ equity (deficit) $ 83,959   $ 121,520  
 

Cyan, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 
Six Months Ended June 30,
2014     2013  
Operating activities
Net loss $ (32,472 ) $ (18,438 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 1,793 1,226
Stock-based compensation 5,282 2,902
Change in fair value for warrants 2,602
Changes in operating assets and liabilities:
Accounts receivable 1,427 (4,162 )
Lease receivable 604
Inventories 7,447 1,014
Deferred costs 4,518 (2,822 )
Prepaid expenses and other assets (1,917 ) (34 )
Accounts payable (2,478 ) 3,921
Accrued and other liabilities 1,424 1,347
Accrued compensation (683 ) 670
Deferred revenue (6,964 ) 5,757
Deferred rent (53 ) 48  
Net cash used in operating activities (22,072 ) (5,969 )
Investing activities
Purchases of property and equipment (2,623 ) (3,072 )
Purchase of available for sale securities (12,803 )
Maturity of available for sale securities 17,900
Sale of available for sale securities 1,000    
Net cash provided by (used in) investing activities 3,474 (3,072 )
Financing activities
Proceeds from initial public offering (IPO), net of issuance costs 88,164
Proceeds from stock-based compensation programs 398 1,105
Repayments of borrowings under notes payable (7,563 )
Taxes paid related to net-share settlements of restricted stock units (325 )
Repayments of borrowings under term loan (794 )
Payments on capital leases (39 )  
Net cash provided by (used in) financing activities (760 ) 81,706  
Effect of exchange rate changes on cash and cash equivalents 60   35  
Net increase (decrease) in cash and cash equivalents (19,298 ) 72,700
Cash and cash equivalents at beginning of period 32,509   20,221  
Cash and cash equivalents at end of period $ 13,211   $ 92,921  
 

Cyan, Inc.

GAAP to Non-GAAP Reconciliation

(In thousands, except per share amounts)

(Unaudited)

 
Three Months Ended
June 30, 2014   March 31, 2014   June 30, 2013
Reconciliation of Gross Profit:
US GAAP as reported $ 10,124 $ 7,423 $ 13,750
Adjustments:
Stock-Based Compensation   113     60     31  
Non-GAAP Gross Profit $ 10,237   $ 7,483   $ 13,781  
 
Reconciliation of Gross margin:
US GAAP as reported 41.5 % 39.0 % 43.4 %
Adjustments:
Stock-Based Compensation   0.5 %   0.3 %   0.1 %
Non-GAAP Gross margin   42.0 %   39.3 %   43.5 %
 
Reconciliation of Research and Development expenses:
US GAAP as reported $ 9,620 $ 9,472 $ 8,158
Adjustments:
Stock-Based Compensation   1,021     915     511  
Non-GAAP Research and Development expense $ 8,599   $ 8,557   $ 7,647  
 
Reconciliation of Sales and Marketing expenses:
US GAAP as reported $ 11,331 $ 11,029 $ 10,821
Adjustments:
Stock-Based Compensation   957     798     560  
Non-GAAP Sales and Marketing expense $ 10,374   $ 10,231   $ 10,261  
 
Reconciliation of General and Administrative expenses:
US GAAP as reported $ 3,711 $ 4,563 $ 3,095
Adjustments:
Stock-Based Compensation   676     742     738  
Non-GAAP General and Administrative expense $ 3,035   $ 3,821   $ 2,357  
 
Reconciliation of Operating expenses:
US GAAP as reported $ 24,662 $ 25,064 $ 22,074
Adjustments:
Stock-Based Compensation   2,654     2,455     1,809  
Non-GAAP Operating expenses $ 22,008   $ 22,609   $ 20,265  
 
Reconciliation of Net income (Loss):
US GAAP as reported ($14,672 ) ($17,800 ) ($9,088 )
Adjustments:
Stock-Based Compensation 2,767 2,515 1,840
Preferred Stock Warrant Expense   -     -     604  
Non-GAAP Net Income (Loss)   ($11,905 )   ($15,285 )   ($6,644 )
 
Reconciliation of Net income (loss) per share, basic and diluted:
US GAAP as reported ($0.31 ) ($0.38 ) ($0.33 )
Adjustments:
Stock-Based Compensation 0.06 0.05 0.07
Preferred Stock Warrant Expense   -     -     0.02  
Non-GAAP Net Income (Loss) per share, basic and diluted   ($0.25 )   ($0.33 )   ($0.24 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.