Monday, October 29, 2007

BigBand Posts Revenue of $38 Million, Restructuring Eliminates CMTS

BigBand Networks posted Q3 revenue of $38.5 million, a decrease of 10% from the third quarter of 2006. GAAP net loss for the third quarter of 2007 was $12.2 million, or $(0.21) per diluted share compared to GAAP net income of $1.6 million, or $0.03 per diluted share, in the third quarter of 2006. GAAP gross margins for the third quarter of 2007 were 36% compared to 52% in the third quarter of 2006.

In addition, BigBand announced a restructuring plan designed to realign resources and significantly increase its efforts on video networking. As part of this plan, BigBand will reduce its workforce by 15% and retire its Cuda CMTS platform.

"Since our revised guidance announcement, we have re-evaluated our business, reviewed our market opportunities and conferred with our customers," commented Amir Bassan-Eskenazi, president and CEO of BigBand Networks. "We have decided to focus on our unique core competency -- video -- and no longer commit resources to the Cuda CMTS platform. In addition, we will reduce our workforce across the company to more closely align spending with near-term revenue opportunities. While our current operating challenges will take some time to work through, we expect to emerge from the next few quarters as a stronger, more focused company."

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