Wednesday, September 26, 2007

BigBand Trims Financial Guidance for Q3

Citing several technical and sales cycle factors, BigBand Networks revised downward its revenue outlook for the third quarter ending September 30, 2007. The company now expects to report revenue for the third quarter in the range of $35 to $39 million, which is below the company's previous guidance of $54 to $58 million.

Factos cited for the decline include a delay in revenue recognition for some switched digital video deployments due to a need for more software customization and integration than originally expected.

BigBand also experienced slowdown in Telco-TV revenue, as its major customer worked through some previously purchased inventory. Finally, the company experienced continued softness in its data business. As a result of lower revenue expectations, BigBand expects to report an operating loss for the third quarter of fiscal year 2007.

"While we believe the market for our video solutions continues to be strong and are confident in our roadmap for the long term, we are clearly disappointed in our execution this quarter," said Amir Bassan-Eskenazi, BigBand's chief executive officer.

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