BigBand Network Inc. (Nasdaq:BBND) has unveiled strong results for the third quarter of 2008 after a succession of disappointing quarters. The company posted $48.3 million revenue, 25% more than the $38.5 million in the corresponding quarter in 2007, and $1.2 million higher than the analysts' consensus estimate ($47.1 million). BigBand develops network-based hardware and software platforms for cable operators and telephone companies.
BigBand also beat the analysts' estimates in its bottom line. The company recorded a GAAP net profit of $3.1 million ($0.05 per share), compared with a net loss of $12.2 million ($0.21 per share) in the corresponding quarter last year. On a non-GAAP basis, the company's net profit totaled $6.5 million ($0.10 per share), higher than the analysts' consensus of $0.03. BigBand generated $7.9 million in cash from operating activities, closing the third quarter of 2008 with $165 million in cash and investments, compared with $158.8 million in the second quarter of 2008.
BigBand also published its guidance for the fourth quarter of the year. The company expects revenue of $48-50 million (the analysts consensus estimate is near the upper end of this range), and net earnings per share on a non-GAAP basis of $0.04-0.06. The company also expects non-GAAP gross margins of 57-59% (compared with 59.2% in the corresponding quarter).
BigBand president and CEO Amir Bassan-Eskenazi said, "This was another quarter of solid financial performance. As we look ahead, we are cautious about the economic environment, but confident in the long-term growth prospects for our business.”
BigBand's share was unchanged at $3.70 in trading on Nasdaq on Friday, giving the company a market cap of $237 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2008
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