BigBand Lays Off 9% Of Employees
Company Cuts 40, Expecting Savings of $8 Million Per Year
By Todd Spangler -- Multichannel News, 1/11/2011 5:24:03 PM
Video equipment vendor BigBand Networks, one of the leading providers of switched digital video gear, will cut 9% of its staff -- or 40 employees worldwide -- as part of cost-reduction measures.
The company disclosed the layoffs in announcing preliminary results for the fourth quarter of 2010. BigBand expects the job cuts, along with the consolidation of certain facilities, to achieve annualized cost savings of approximately $8 million. As a result of these measures, BigBand expects to incur a one-time charge of approximately $2 million in the first quarter of 2011.
For the fourth quarter, BigBand expects to report revenues of about $26 million, with a net loss of approximately $0.09 per share.
"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," BigBand president and CEO Amir Bassan-Eskenazi said in a statement. "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."
The company has been hurt by faltering sales and undertook a management shakeup last spring. In May 2010, the company said it would cut 6% of its work force, representing about 30 full-time employees and contractors.
BigBand is scheduled to report fourth-quarter 2010 earnings on Feb. 1 after market close.
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