BigBand Networks reports Q2 sales slump
Citing a slowdown in the deployment of switched digital video and QAMs, BigBand Networks posted a net loss of $9.5 million in its second-quarter earnings.
Revenues for the second quarter that ended June 30 were $26.4 million, compared with $39 million for the second quarter of 2009. The $9.6 million loss, or 14 cents per share, was in contrast to the net income of $3.1 million, or 4 cents per diluted share, reported in the second quarter of last year.
BigBand finished the second quarter with $163.1 million in cash and marketable securities.
"In our SDV and QAM business, we experienced a slowdown in revenues as we discussed with you last quarter, as some customers are preparing for capacity expansion and others are taking a breather on deploying new systems," said BigBand President and CEO Amir Bassan-Eskenazi. "We believe this is a temporary situation, but it impacts our Q3 outlook.
"We're excited about the opportunity in front of us in SDV in terms of footprint expansion into new systems and new customers, capacity expansion, supporting HD growth, as well as functional expansion with new IPTV applications. We believe we'll remain the clear leader in SDV and have now reached over 37 million households passed, deployed or in the process of being deployed."
Bassan-Eskenazi cited a recent customer win with SureWest Communications and Charter Communications' plan to deploy more SDV in its systems as reasons for his optimism.
Going forward, BigBand said its revenue for the third quarter will be $24 million to $27 million.