NEW YORK (TheStreet) -- Small-cap Cyan Inc (CYNI) is tumbling during Tuesday's trading session, down 27.5% to $3.75 by midday.
A day earlier, the IT services and consulting company announced disappointing preliminary results for its fourth quarter ended Dec. 31, 2013. Revenue in the range of $20 million to $21 million is well below the previously guided $30 million to $33 million range. The sales decline is due to Cyan's largest customer decreasing its purchases 88% quarter-on-quarter to $2 million.
"Although we expect revenue from this customer to represent a meaningful portion of our revenue in future periods, we expect that it will continue to fluctuate from quarter-to-quarter. As we previously noted, our business in the near term is substantially dependent on this customer while we ramp revenue from new accounts and expand our customer base," said CEO Mark Floyd.
Excluding sales from the largest client, revenue increased between 32% and 34% year-on-year.The Petaluma, Calif-based business is due to release fourth quarter results in early February. --Written by Keris Alison Lahiff.
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