Video-equipment maker BigBand Networks posted a 23% decline in sales for the fourth quarter of 2010, and the company expects weak sales to continue into at least the first three months of 2011.
For the fourth quarter of 2010, total revenue was $26.3 million compared with $34.4 million in the year-prior period. Net loss was $5.9 million, compared with a net loss of $1.2 million for the fourth quarter of 2009.
For the first quarter of 2011, BigBand expects revenue to be between $17 million and $20 million -- representing a 38% to 47% decline from the same period last year -- with a net loss of $0.17 to $0.20 per share versus a $2.3 million net profit a year ago.
"While our financial performance in fiscal year 2010 and our current outlook are disappointing, our recent progress with our customers and products is promising," BigBand president and CEO Amir Bassan-Eskenazi said in announcing the results.
Separately Tuesday, BigBand announced that it expanded the footprint for its switched digital video with China's Jiangsu Broadcasting Television Network -- the vendor's first commercial SDV deployment outside of North America. Jiangsu Cable, which is one of the largest cable operators in China with more than 17 million subscribers, expects the project to free up bandwidth for HD video and video-on-demand.
BigBand is "encouraged by our recent [switched digital video] win in Asia, we have received promising feedback on the MSP QAM and are experiencing growing interest in our vIP Pass and Advanced Advertising solutions," Bassan-Eskenazi added. "We are optimistic that the strategy we are pursuing will allow for improved financial results in the second half of 2011."
For fiscal year 2010, sales were $111.7 million, down about 20% compared with $139.5 million in 2009. Net loss was $31.6 million, or $0.46 per share, compared with a net loss of $6.7 million, or $0.10 per share, in 2009.
In January, BigBand announced another round of layoffs, to cut 9% of its staff or 40 employees as part of cost-reduction measures.