BigBand Networks to layoff 9 percent of workforce
BigBand Networks announced late yesterday afternoon that it was cutting 9 percent of its workforce, which is about 40 jobs worldwide, and consolidating its facilities in an effort to save money.
BigBand Networks, a switched digital video pioneer and edge QAM vendor, said the job reductions and consolidation would save it about $8 million a year, and the Redwood City, Calif.-based company plans to incur a one-time charge of $2 million in the first quarter.
Last year, BigBand's edge QAM and SDV sales slumped, but the company was optimistic that SDV deployments by Charter Communications, and possibly Comcast, would lead to increased sales.
For the fourth quarter, BigBand expects to report revenues to be approximately $26 million, GAAP net loss of approximately 9 cents per share and non-GAAP net loss of approximately 5 cents per share. These results are in line with the outlook provided by the company on Oct. 19.
BigBand will report its quarterly results on Feb. 1.
"Our preliminary results for the fourth quarter are in line with the prior outlook we provided, and today's actions are designed to help us strike the right balance between preserving cash and investing in the future," said BigBand President and CEO Amir Bassan-Eskenazi. "We are emerging from a challenging year and remain focused on our strategic priorities for the cable and telco markets such as the MSP QAM, SDV, vIP Pass and advanced advertising."
At last year's SCTE Cable-Tec Expo, BigBand Networks unveiled its new 40:1 QAM, which comes as either a blade or a plug-in to the company's Media Services Platform (MSP). The new 40:1 QAM was part of a wave of new, denser QAMs that are expected to play a role in the converged multi-service access platform (CMAP) approach.
BigBand released its vIP Pass product in March of 2009.
In May of last year, BigBand cut 6 percent of its workforce after a disappointing first quarter.