May 6, 2014
Cyan (NYSE: CYNI), a leading provider of software-defined networking (SDN) and packet-optical solutions for network operators, today announced financial results for its first quarter ended March 31, 2014.
Revenue for the first quarter of 2014 was $19.0 million compared with $26.3 million in the first quarter of 2013 and $20.9 million for the fourth quarter of 2013. GAAP net loss for the first quarter was $17.8 million, or $0.38 per share, compared with a net loss of $9.4 million, or $3.61 per share, in the same period last year, and a net loss of $13.7 million, or $0.29 per share, in the fourth quarter of 2013.
On a non-GAAP basis, Cyan’s net loss for the first quarter was $15.3 million, or $0.33 per share. This compares to a non-GAAP net loss of $6.3 million, or $2.43 per share, in the same period last year and to a non-GAAP net loss of $11.5 million, or $0.25 per share, in the fourth quarter of 2013. Both GAAP and non-GAAP net loss per share figures for the first quarter are based on 46.6 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 2014 we are seeing industry momentum accelerate as servicer providers are announcing initiatives to transform their networks with SDN and NFV technologies,” said Mark Floyd, Cyan’s chairman and chief executive officer. “We believe Cyan is well positioned in the market and has a unique, first mover advantage in helping customers to orchestrate both network and virtualized resources across multi-domain, multi-vendor networks.”
First Quarter Highlights
- Cyan’s Blue Planet SDN Platform won NetEvents Cloud Innovation 2014 award for the best “NFV Solution for Carriers”
- At Mobile World Congress, Cyan and a group of industry partners demonstrated multi-vendor NFV orchestration. This official ETSI proof of concept demo was sponsored by Telefonica and Sprint and showed how Cyan’s Blue Planet SDN Platform could quickly turn-up a virtual evolved packet core
- Cyan introduced major enhancements to both the Cyan Z-Series Packet-Optical hardware and Blue Planet SDN Platform, including:
o Enhancements to Z-Series focused on 100G scale and packet functionality
o New Blue Planet SDN Platform features including A-to-Z provisioning of Metro Ethernet Forum (MEF) services in multi-vendor networks, a “cut-in” and “cut-out” feature, and new element adapters for provisioning Accedian and RAD devices
o An open MEF Carrier Ethernet (CE) 2.0 application programming interface (API) for improved network programmability
- Cyan appointed Jeff Ross as chief financial officer, and brings 25 years of strong financial leadership to Cyan
Cyan will host a conference call for analysts and investors to discuss its first quarter 2014 results as well as guidance for its second quarter of 2014 today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To access the live call, please dial 1-877-941-1427 (US or Canada) or 1-480-629-9664 (international) and use the password: Cyan. A telephonic replay of the call will be available from approximately two hours after the call until 11:59 pm on May 20, 2014, and can be accessed by dialing 1-800-406-7325 or 1-303-590-3030 and entering passcode 4676922#. 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 we no longer incur expenses associated with the 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.
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: fluctuations in demand for our products and services, particularly as it relates to large sales to existing and new customers; fluctuations in the price for our products and services; the adoption rate of our products, particularly our Blue Planet solution; our ability to compete in our industry; future growth in our international sales and our international expansion; 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 March 31, 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.
Cyan enables network transformation. The company’s software-defined network (SDN) solutions deliver orchestration, agility, 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, and Cyan Pro professional services. For more information, please visit www.cyaninc.com or follow Cyan on Twitter at http://twitter.com/CyanNews.
Source: Cyan, Inc.
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