|Excerpt of previously posted article:|
Cumello tells us that Cyan will further elaborate on the reasons for its change in outlook when the company reports fourth-quarter earnings on Feb. 18. For now, he's dancing around the question of how much the higher revenue projection has to do with the Windstream deal, saying that Cyan saw increased interest "across all markets" for its optical and SDN/NFV products.
Industry analysts are keenly watching Cyan for some progress in converting its numerous SDN/NFV trials into paying contracts. This week's statement from the company also reiterated CEO Floyd's earlier projection that Cyan will do just that during the first half of this year, but how soon such contract wins will translate into revenue remains to be seen.
"We remain concerned that Tier 1 carriers are notoriously slow-moving, and it might be a few quarters before Blue Planet [Cyan's SDN software platform] could hit the top-line for these Tier 1 opportunities," says George Notter, analyst with Jefferies, in a research note.
Lagging SDN purchasing cycles were part of what drove Cyan to size up new funding options late last year. In December, it announced a sale of Convertible Senior Secured Notes to obtain more than $46 million to be used to support ongoing business operations.