Cyan, which provides a software-driven transport/switching
platform for network operators, raised $88 million by offering 8
million shares at $11, within its $10 to $12 range. The company
has seen extraordinary growth since it began shipping its first
products in late 2009, though it remains unprofitable.
Revenue in 2012 totaled $96 million, up from $40 million in
Cyan represents the first pure-play telecom equipment/software
IPO in the U.S. since video processing platform vendor Envivio (
) debuted in April 2012 (Envivio has since dropped 83% from its
$9 offer price). WiFi equipment supplier Ruckus Wireless (
), which derives roughly one-third of its revenue from telecom
carriers in the US and Asia, went public on November 15, 2012.
Ruckus Wireless rose as much as 77% from its IPO price by mid
February, but tumbled 26% on Tuesday (and now sits below its
offer price) after issuing a revenue and earnings shortfall. The
company cited deployment delays from its telecom customers.
Cyan, which has venture backing from Norwest, Azure Capital,
Tenaya, Focus Ventures and Meritech, is led by a veteran
management team including former executives from broadband
equipment provider Calix (
) and optical switch company Cerent (acquired by Cisco for $7
billion in 1999).
Cyan will list on the NYSE under the symbol CYNI. Goldman Sachs,
J.P. Morgan and Jefferies & Co. acted as bookrunning managers
on the deal.