|By Business Wire||
|August 11, 2014 04:03 PM EDT||
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.
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.
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.
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.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
|Three Months Ended June 30,||Six Months Ended June 30,|
|Cost of revenue||14,268||17,936||25,883||33,338|
|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||)|
|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|
|Basic and diluted net loss per share||$||(0.31||)||$||(0.33||)||$||(0.69||)||$||(1.22||)|
|Weighted-average number of shares used in computing basic and diluted net loss per share||46,882||27,425||46,760||15,077|
Condensed Consolidated Balance Sheets
|June 30, 2014||December 31, 2013|
|Cash and cash equivalents||$||13,211||$||32,509|
|Short-term lease receivable||—||201|
|Prepaid expenses and other||3,297||1,378|
|Total current assets||72,017||109,317|
|Long-term lease receivable||—||403|
|Property and equipment, net||11,299||11,155|
|Liabilities and stockholders’ equity (deficit)|
|Term loan, current portion||1,635||1,604|
|Total current liabilities||27,709||37,124|
|Term loan, non-current portion||2,571||3,396|
|Stockholders’ equity (deficit):|
|Additional paid in-capital||211,665||206,300|
|Accumulated other comprehensive income (loss)||(16||)||(86||)|
|Total stockholders’ equity (deficit)||51,900||78,937|
|Total liabilities and stockholders’ equity (deficit)||$||83,959||$||121,520|
Condensed Consolidated Statements of Cash Flows
|Six Months Ended June 30,|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||1,793||1,226|
|Change in fair value for warrants||—||2,602|
|Changes in operating assets and liabilities:|
|Prepaid expenses and other assets||(1,917||)||(34||)|
|Accrued and other liabilities||1,424||1,347|
|Net cash used in operating activities||(22,072||)||(5,969||)|
|Purchases of property and equipment||(2,623||)||(3,072||)|
|Purchase of available for sale securities||(12,803||)||—|
|Maturity of available for sale securities||17,900||—|
|Sale of available for sale securities||1,000||—|
|Net cash provided by (used in) investing activities||3,474||(3,072||)|
|Proceeds from initial public offering (IPO), net of issuance costs||—||88,164|
|Proceeds from stock-based compensation programs||398||1,105|
|Repayments of borrowings under notes payable||—||(7,563||)|
|Taxes paid related to net-share settlements of restricted stock units||(325||)||—|
|Repayments of borrowings under term loan||(794||)||—|
|Payments on capital leases||(39||)||—|
|Net cash provided by (used in) financing activities||(760||)||81,706|
|Effect of exchange rate changes on cash and cash equivalents||60||35|
|Net increase (decrease) in cash and cash equivalents||(19,298||)||72,700|
|Cash and cash equivalents at beginning of period||32,509||20,221|
|Cash and cash equivalents at end of period||$||13,211||$||92,921|
GAAP to Non-GAAP Reconciliation
(In thousands, except per share amounts)
|Three Months Ended|
|June 30, 2014||March 31, 2014||June 30, 2013|
|Reconciliation of Gross Profit:|
|US GAAP as reported||$||10,124||$||7,423||$||13,750|
|Non-GAAP Gross Profit||$||10,237||$||7,483||$||13,781|
|Reconciliation of Gross margin:|
|US GAAP as reported||41.5||%||39.0||%||43.4||%|
|Non-GAAP Gross margin||42.0||%||39.3||%||43.5||%|
|Reconciliation of Research and Development expenses:|
|US GAAP as reported||$||9,620||$||9,472||$||8,158|
|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|
|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|
|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|
|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||)|
|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||)|
|Preferred Stock Warrant Expense||-||-||0.02|
|Non-GAAP Net Income (Loss) per share, basic and diluted||($0.25||)||($0.33||)||($0.24||)|
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
May. 1, 2016 01:30 PM EDT Reads: 1,546
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
May. 1, 2016 01:30 PM EDT Reads: 767
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
May. 1, 2016 01:00 PM EDT Reads: 1,727
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 1, 2016 12:45 PM EDT Reads: 761
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
May. 1, 2016 12:15 PM EDT Reads: 604
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
May. 1, 2016 12:15 PM EDT Reads: 2,310
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 1, 2016 12:00 PM EDT Reads: 1,104
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
May. 1, 2016 11:45 AM EDT Reads: 1,482
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 1, 2016 11:00 AM EDT Reads: 829
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
May. 1, 2016 11:00 AM EDT Reads: 629
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
May. 1, 2016 11:00 AM EDT Reads: 1,084
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
May. 1, 2016 11:00 AM EDT Reads: 789
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 1, 2016 10:15 AM EDT Reads: 1,156
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
May. 1, 2016 10:15 AM EDT Reads: 954
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
May. 1, 2016 10:00 AM EDT Reads: 923