BigBand Cuts Workforce By 10%
Vendor Cites ‘Macro-Economic Environment' for Layoffs
By Todd Spangler -- Multichannel News, 2/13/2009 11:16:19 AM
BigBand Networks has laid off 46 employees, or about 10% of its current workforce, even as the video-equipment vendor swung to a net profit of $7.3 million on a 76% jump in revenue for the fourth quarter of 2008.
"In the near term, we remain cautious about the macro-economic environment and its potential impact on service provider spending," BigBand president and CEO Amir Bassan-Eskenazi said in a statement. "Over the long-term, service providers will continue to make substantial investments in the transition to digital television which will drive our business."
For the fourth quarter of 2008, BigBand's sales were $54.1 million, up 76% compared with $30.7 million the year prior. Net income was $7.3 million, or $0.11 per diluted share, compared with a net loss of $13.8 million in the fourth quarter of 2007.
Bassan-Eskenazi, on a call with investors Thursday, said BigBand grew switched digital video revenue and QAM sales in the quarter, noting that the company has shipped 470,000 QAM channels to date.
The company expects to record a restructuring charge of approximately $1.25 million in the first quarter of 2009, related to severance and facility charges associated with the layoffs.
For the first quarter of 2009, BigBand expects revenue in the range of $43.0 million to $45.0 million and a net loss in the range of ($0.01) to ($0.03) per share.
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