Monday, January 6, 2014

Cyan Cites Big Sales Drop from Largest Customer

Cyan now expects Q4 2013 revenue to be in the range of $20 million to $21 million, below the company’s previous guidance of $30 million to $33 million.

Cyan blamed the revenue drop on lower sales to its largest customer, which decreased its purchases by approximately 88% from $19 million in Q3 2013 to $2 million in the fourth quarter. Revenue for the full 2013 year is expected to be in the range of $116 million to $117 million. For the year, revenue excluding the largest customer is expected to be in the range of $70 million to $71 million, an increase of 32% to 34% in 2013 over 2012.

“We are very disappointed with our preliminary fourth quarter 2013 revenue results, which were significantly impacted by a sharp decline in orders from our largest customer,” said Mark Floyd, Cyan’s chief executive officer. “Although we expect revenue from this customer to represent a meaningful portion of our revenue in future periods, we expect that it will continue to fluctuate from quarter-to-quarter. As we previously noted, our business in the near term is substantially dependent on this customer while we ramp revenue from new accounts and expand our customer base.”

“On a positive note, in 2013, we saw increased momentum from several of the markets we serve, with revenue excluding our largest customer increasing 32% to 34% year-over-year. Additionally, we continued to make progress with our Tier-1 opportunities as lab trials and proof-of-concept activities continue. Our BluePlanet software is a key differentiator for Cyan and we remain confident in our long-term prospects and opportunity to capitalize on the widespread and fundamental shift to software defined WAN networks.”