BigBand swings to profit, lays off 10%
BigBand closed its fiscal 2008 with a fourth-quarter surge to record digital video networking revenue. But expecting the economic recession might compel service providers to cut capex in the near term, BigBand also decided on a restructuring that will include a layoff of 46 employees.
BigBand CEO Amir Bassan-Eskenazi said: “In the near term, we remain cautious about the macro-economic environment and its potential impact on service provider spending. Over the long term, service providers will continue to make substantial investments in the transition to digital television, which will drive our business.”
Fourth-quarter revenue was $54.1 million, a 76 percent increase from $30.7 million in the fourth quarter of 2007. Revenues from Digital Video Networking (DVN) products and services were $52.3 million in the fourth quarter of 2008, a 118 percent increase from the $24 million reported in the fourth quarter of 2007. The results helped the company swing from a Q4 ’07 loss of $13.8 million to a Q4 ’08 profit of $7.3 million.
Annual revenue was up 5 percent to $185 million from the year previous, sending BigBand $9.8 million into the black after a 2007 loss of $25.4 million.
Looking ahead, the company is expecting less revenue, in the $43 million to $45 million range.
BigBand said it will incur a restructuring charge of approximately $1.25 million in the first quarter of 2009, related to severance and facility charges associated with the reduction in workforce.