BigBand posts loss, looks to 2010
BigBand Networks swung to a loss in its third quarter, as it had warned it might after announcing its second-quarter results three months ago.
Bookings are now up a bit in the third quarter, however, and the company sees indications there will be a pickup in capital spending in 2010.
Third-quarter total revenue was $22.2 million, less than half of the $48.3 million recorded in the third quarter a year ago. The net loss was $10.9 million, compared with a net income of $3.1 million in Q3 ’08.
“We are encouraged by the significant improvement in bookings during the third quarter, compared to the slower order activity experienced in the second quarter of 2009 that resulted in lower revenues in the September period,” said Amir Bassan-Eskenazi, president and CEO of BigBand Networks.
“We won major new switched digital video markets, which increased our coverage to more than 28 million homes. In addition, we experienced stronger bookings in other solutions, which increases our confidence for improved operating results in the fourth quarter. Based on interactions with our customers and prospects, we believe operators are preparing to increase capital spending on video equipment in 2010.”
For the fourth quarter of 2009, BigBand said it expects net revenues to be in the range of $32 million to $34 million. The result could be a break-even quarter or a small loss.