R&D costs rise 77% for startup
PETALUMA — Startup telecommunications equipment and software developer Cyan (NYSE: CYNI) on Tuesday reported revenue increased 22 percent in 2013, but its net loss widened substantially.
Cyan reported an annual net loss of $40.7 million, or $1.32 a share, on revenues of $116.6 million. The net loss was $16.6 million, or $6.60 per share, in 2012.
Total operating expenses grew 60 percent to $88 million $55 million. The research-and-development part of that soared 77 percent to $32.6 million from $18.4 milion.
“Overall, 2013 was a very important year for Cyan as our packet-optical technology and SDN software was deployed as part of customer network transformation efforts around the globe,” said Mark Floyd, Cyan’s chairman and chief executive officer, in a statement. “We are proud to be at the forefront of this transformation, and while we are still in the very early stages, we are excited about the traction we are gaining with our Z-Series packet-optical and Blue Planet SDN solutions.”
Earnings for Cyan include stock-based compensation and the conversion of preferred stock related to the company’s initial public offering in May. Cyan’s pro forma net loss for 2013 was $30.9 million, or $1.00 per share, compared with $9.2 million, or $3.64 per share in 2012.
The closing price of Cyan shares were $3.73 Tuesday, down 2.1 percent.
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