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[January 06, 2014]
Cyan lowers revenue guidance for 4th quarter
(Associated Press Via Acquire Media NewsEdge) PETALUMA, Calif. (AP) — Cyan Inc.'s shares fell in extended trading Monday after the software company said that its fourth-quarter revenue may come in lower than anticipated.
The Petaluma, Calif., company said that its revenue for the period that ended Dec. 31 should be between $20 million and $21 million. That's below the company's previous guidance of $30 million to $33 million. Analysts polled by FactSet were anticipating revenue of $31 million for the fourth quarter.
Cyan blamed the shortfall on a sharp decline in orders from its largest customer. The company said there was an 88 percent drop in revenue from this customer from its fiscal third to fourth quarter.
The company also said Monday that it anticipates its revenue for the full year will be between $116 million and $117 million. Analysts were anticipating revenue of $126.8 million.
CEO Mark Floyd said that he was disappointed in the preliminary revenue results for the quarter. The company expects revenue will continue to fluctuate from quarter to quarter.
Cyan's business is largely dependent on the unnamed customer while it tries to ramp up revenue from new accounts and expand its customer base. Cyan provides a software-driven transport and switching platform for network operators.
The company expects to report its full results for the fourth quarter and year in February.
Shares fell nearly 23 percent to $4 in after-hour trading following the announcement. Its stock slipped 12 cents to close regular trading at $5.17.
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