BigBand Networks, a supplier of switched digital and IP video equipment, posted a 32% drop in revenue and swung to a net loss of $9.6 million for the second quarter of 2010.
The company reported sales of $26.4 million for the three months ended June 30, versus $39.0 million in the year-ago period. Net loss for the second quarter of 2010 was $9.6 million, or $0.14 per share, compared with net income of $3.1 million in the second quarter of 2009.
Most of BigBand's revenue in the recent quarter came from two customers: Time Warner Cable, which represented 36% of revenue; and Verizon Communications, at 22%. Other customers include Cox Communications, Charter Communications and Cablevision Systems.
BigBand president and CEO Amir Bassan-Eskenazi, on a call with analysts, said the company experienced a slowdown in revenue on SDV and QAM as "some customers are preparing for capacity expansion and others are taking a breather on deploying new systems."
"We believe this is a temporary situation but it impacts our third-quarter outlook," he said, noting that BigBand's switched digital video now passed more than 37 million households.
For the third quarter of 2010, BigBand expects revenue to be $24 million to $27 million, with a net loss per share of $0.11 to $0.14.
In May, the company announced it would cut 6% of its work force, representing about 30 full-time employees and contractors. For the second quarter, BigBand incurred a $1.0 million charge related to restructuring.
Charter is in the process of launching SDV in about 60% of its markets by the end of 2010, Bassan-Eskenazi noted. However, in addition to BigBand, Charter also is using Motorola switched digital video equipment.
In March, BigBand shook up its management ranks, with the resignations of COO David Heard, senior vice president of worldwide sales Sean Rooney and chief financial officer Moe Castonguay. The company promoted vice president of finance Ravi Narula to the position of CFO effective May 1.