Packet-optical networking vendor Cyan prices IPO at $11, midpoint of the range

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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 2011.

Cyan represents the first pure-play telecom equipment/software IPO in the U.S. since video processing platform vendor Envivio ( ENVI ) debuted in April 2012 (Envivio has since dropped 83% from its $9 offer price). WiFi equipment supplier Ruckus Wireless ( RKUS ), 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 ( CALX ) 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.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: News Headlines , IPOs

Referenced Stocks: CALX , CYNI , ENVI , RKUS

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