CYAN INC

CIK:0001391636|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Revenue	$ 36,005us-gaap_Revenues	$ 19,038us-gaap_Revenues
Cost of revenue	20,974us-gaap_CostOfRevenue	11,615us-gaap_CostOfRevenue
Gross profit	15,031us-gaap_GrossProfit	7,423us-gaap_GrossProfit
Operating expenses:
Research and development	8,941us-gaap_ResearchAndDevelopmentExpense	9,472us-gaap_ResearchAndDevelopmentExpense
Sales and marketing	11,436us-gaap_SellingAndMarketingExpense	11,029us-gaap_SellingAndMarketingExpense
General and administrative	5,082us-gaap_GeneralAndAdministrativeExpense	4,563us-gaap_GeneralAndAdministrativeExpense
Total operating expenses	25,459us-gaap_OperatingExpenses	25,064us-gaap_OperatingExpenses
Loss from operations	(10,428)	(17,641)
Change in fair value of derivative and warrant liabilities	(41,285)	0
Interest expense	(1,546)us-gaap_InterestExpense	(47)us-gaap_InterestExpense
Other income (expense), net	419us-gaap_OtherNonoperatingIncomeExpense	(62)us-gaap_OtherNonoperatingIncomeExpense
Total other income (expense), net	(42,412)us-gaap_NonoperatingIncomeExpense	(109)us-gaap_NonoperatingIncomeExpense
Loss before provision for income taxes	(52,840)	(17,750)
Provision for income taxes	51us-gaap_IncomeTaxExpenseBenefit	50us-gaap_IncomeTaxExpenseBenefit
Net loss	$ (52,891)us-gaap_NetIncomeLoss	$ (17,800)us-gaap_NetIncomeLoss
Basic and diluted net loss per share (usd per share)	$ (1.11)us-gaap_EarningsPerShareBasicAndDiluted	$ (0.38)us-gaap_EarningsPerShareBasicAndDiluted
Weighted-average number of shares used in computing basic and diluted net loss per share (shares)	47,818	46,636

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net loss	$ (52,891)us-gaap_NetIncomeLoss	$ (17,800)us-gaap_NetIncomeLoss
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,177us-gaap_DepreciationAndAmortization	889us-gaap_DepreciationAndAmortization
Stock-based compensation	4,403us-gaap_ShareBasedCompensation	2,515us-gaap_ShareBasedCompensation
Change in fair value of derivative and warrant liabilities	41,285us-gaap_FairValueAdjustmentOfWarrants	0us-gaap_FairValueAdjustmentOfWarrants
Accretion of debt discount	419	0
Loss on disposal of assets	114	0
Changes in operating assets and liabilities:
Accounts receivable	5,717	293
Lease receivable	0	604
Inventories	2,812us-gaap_IncreaseDecreaseInInventories	1,395us-gaap_IncreaseDecreaseInInventories
Deferred costs	12	2,679
Prepaid expenses and other assets	123	83
Accounts payable	454	(1,577)
Accrued and other liabilities	1,704	(448)
Accrued compensation	1,171	(694)
Deferred revenue	(399)	(2,789)
Deferred rent	(106)us-gaap_IncreaseDecreaseInPrepaidRent	(27)us-gaap_IncreaseDecreaseInPrepaidRent
Net cash provided by (used in) operating activities	5,995	(14,877)
Investing activities
Purchases of property and equipment	(843)	(2,284)
Purchase of available for sale securities	0	(11,498)
Maturity of available for sale securities	0	1,000
Sale of available for sale securities	0	11,750
Sale of other investment	807	0
Net cash used in investing activities	(36)	(1,032)
Financing activities
Proceeds from stock-based compensation programs	1,358	236
Taxes paid related to net-share settlements of restricted stock units	(1,060)	(92)
Repayments of borrowings under term loan	0us-gaap_RepaymentsOfBankDebt	(396)us-gaap_RepaymentsOfBankDebt
Payments on capital leases	0	(39)
Net cash provided by (used in) financing activities	298	(291)
Effect of exchange rate changes on cash and cash equivalents	(127)	137
Net increase (decrease) in cash and cash equivalents	6,130	(16,063)
Cash and cash equivalents at beginning of period	47,740	32,509
Cash and cash equivalents at end of period	53,870	16,446
Supplemental disclosures of cash flow information
Cash paid for interest	0us-gaap_InterestPaid	47us-gaap_InterestPaid
Non-cash Investing and financing activities
Property and equipment included in accounts payable	$ 244	$ 215

Balance Sheet Components

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following (in thousands):



	March 31, 2015		December 31, 2014
Cash	$	53,870	$	43,630
Money market funds	—		4,110
Total cash and cash equivalents	$	53,870	$	47,740

Inventory

Inventories consisted primarily of finished goods purchased from the contract manufacturer and are stated at the lower of cost or market value (on a first-in, first-out basis). Inventory consisted of the following (in thousands):



	March 31, 2015		December 31, 2014
Raw materials	$	928	$	1,202
Finished goods	8,339		11,160
Total Inventory	$	9,267	$	12,362

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):



	March 31, 2015			December 31, 2014
Lab equipment and tooling	$	18,965		$	18,303
Software	849			628
Leasehold improvements	1,735			1,569
Furniture and fixtures	1,112			987
Computer equipment	730			720
	23,391			22,207
Less accumulated depreciation and amortization	(11,262		)	(10,311		)
Property and equipment, net	$	12,129		$	11,896

For the three months ended March 31, 2015 and 2014 depreciation and amortization expense on property and equipment was $1.0 million and $0.9 million.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):



	March 31, 2015		December 31, 2014
Inventory-in-transit	$	99	$	1,516
Warranty reserve (1)	2,641		2,564
Sales returns reserve	1,248		370
Professional fees	1,525		1,137
Sales and use taxes	224		201
Accrued interest	1,187		18
Other	714		969
Total accrued liabilities	$	7,638	$	6,775

(1) Activity related to warranties is as follows (in thousands):



	Three Months Ended March 31,
	2015			2014
Beginning balance	$	2,564		$	1,374
Charge to cost of sales	361			473
Costs incurred	(284		)	(170		)
Closing balance	$	2,641		$	1,677