- In an SA Pro column (embargoed until 9:30AM tomorrow), Stephen Simpson argues Cyan (CYNI +4.9%) is capable of delivering a 20% CAGR through 2022 on the back of strong demand for its packet-optical systems (they combine Ethernet switching and optical transmission systems) and carrier software-defined networking (SDN) platform.
- Simpsons observes Cyan had 85 customers for its Blue Planet SDN platform (still less than 10% of revenue) at the end of Q2, up from the 35 going into its IPO, and that the company's hardware addresses an $18.5B/year market opportunity.
- However, he cautions Cyan remains dependent on telco Windstream (37% of Q2 revenue), and that competition is fierce. Cisco, Ciena, and Tellabs are major players in the packet-optical space, and Cisco and Huawei are among the companies working on carrier SDN solutions.
- Cyan remains 14% below its May IPO price of $11.