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BigBand Networks Announces Third Quarter 2009 Results REDWOOD CITY, Calif.--(BUSINESS WIRE)--BigBand Networks, Inc., (NASDAQ: BBND - News) today reported financial results
for the third quarter and nine months ended September 30, 2009. For the third quarter of 2009, total revenues were $22.2 million, and GAAP net loss was $10.9 million, or ($0.16) per share. This compares to revenues of $48.3 million and GAAP net income of $3.1 million, or $0.05 per diluted share, reported in the third quarter of 2008. On a non-GAAP basis, the Company reported a net loss of $5.9 million, or ($0.09) per share, in the third quarter of 2009, which compares to non-GAAP net income of $6.5 million, or $0.10 per diluted share, reported in the third quarter of 2008. Third quarter 2009 non-GAAP results exclude $3.8 million of stock-based compensation expense and include a $1.1 million tax benefit for the reduction of taxes provided earlier in the year. The GAAP to non-GAAP reconciling items, for the three and nine month periods ended September 30, 2009 and 2008 can be found in “The Reconciliations of GAAP to Non-GAAP Financial Measures” attached to this press release. The Company closed the third quarter with $41.8 million in deferred revenue. In addition, cash, cash equivalents and marketable securities were $161.6 million at September 30, 2009. “We are encouraged by the significant improvement in bookings during the third quarter, compared to the slower order activity experienced in the second quarter of 2009 that resulted in lower revenues in the September period,” commented Amir Bassan-Eskenazi, president and CEO of BigBand Networks. “We won major new Switched Digital Video markets, which increased our coverage to more than 28 million homes. In addition, we experienced stronger bookings in other solutions, which increases our confidence for improved operating results in the fourth quarter. Based on interactions with our customers and prospects, we believe operators are preparing to increase capital spending on video equipment in 2010.” For the nine months ended September 30, 2009, total revenues were $105.1 million, and GAAP net loss was $5.5 million, or ($0.08) per share. This compares to total revenues of $131.2 million and GAAP net income of $2.5 million, or $0.04 per diluted share, reported in the nine months ended September 30, 2008. On a non-GAAP basis, the Company reported net income of $6.2 million, or $0.09 per diluted share, in the nine months ended September 30, 2009. This compares to non-GAAP net income of $12.4 million, or $0.18 per diluted share, reported in the nine months ended September 30, 2008. Fourth Quarter 2009 Business Outlook For the fourth quarter of 2009, management provides the following outlook:
The following table shows our non-GAAP business outlook for the quarter ending December 31, 2009 reconciled to our GAAP business outlook. Our non-GAAP business outlook excludes stock-based compensation and income tax benefit.
Non-GAAP Financial Measures BigBand reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP), but we believe that evaluating our ongoing operating results may be difficult to understand if limited to reviewing only GAAP financial measures. Many of our investors have requested that we disclose non-GAAP information because it is useful in understanding our performance as it excludes non-cash and other one-time charges or benefits that many investors feel may obscure our true operating results. Likewise, management uses non-GAAP measures to manage and assess the profitability of our business going forward and does not consider stock-based compensation expense and related income taxes which are non-cash charges. Specifically, management does not consider these expenses when developing and monitoring our budgets and spending. The economic substance behind our decision to exclude stock-based compensation and related income taxes relates to these charges being non-cash in nature. As a result, we use calculations of non-GAAP operating income (loss), net income (loss), net income (loss) per share and gross margin, which exclude these expenses, when evaluating our ongoing operations and allocating resources within the organization. As a result, our management believes it is useful, for itself and investors, to review both GAAP information that includes such charges and non-GAAP information that exclude these charges because management believes such information enables such parties to have a better understanding of the overall performance of our ongoing business operations in the periods presented. Whenever we use a non-GAAP financial measure, we provide a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. Conference Call Details for November 3, 2009 BigBand Networks will host a corresponding conference call and live webcast at 2:00 p.m. Pacific Time today. To access the conference call, dial +1-888-846-5003 for the U.S. or Canada and +1-480-629-9856 for international callers. The webcast will be available live on the Investor Relations section of the Company’s corporate website at www.bigbandnet.com and via replay beginning approximately two hours after the completion of the call until the Company's announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 4:00 p.m. Pacific Time on November 3, 2009 until 11:59 p.m. Pacific Time on November 10, 2009, by dialing +1-800-406-7325 or +1-303-590-3030 for callers outside the U.S. and Canada, and entering passcode 4171235#. Cautionary Statement The statements in this release regarding being encouraged by improvement in bookings, increasing our confidence for improved operating results in future periods, operators preparing to increase capital spending on video equipment in 2010 and our GAAP and non-GAAP business outlook, as applicable, with respect to the fourth quarter of 2009 (including revenues, gross margins, operating expenses, taxes and earnings per share) are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: unexpected fluctuations in our business due to the continuing weakness in the global economy, global credit issues, changes in demand for video services, the market acceptance of our products; the financial strength of our current and potential customers; the fluctuations in our gross margins; the concentration of our customer base; competitive developments including pricing pressures; the timing of recognition of a significant portion of our net revenues given the complex systems integration involved; our ability to manage operating expenses effectively; the level of orders that are received and can be shipped in a given quarter; and the general economic, industry or political conditions in the United States or internationally. For a detailed discussion of these and other risk factors, please refer to BigBand’s most recent Form 10-Q for the quarter ended June 30, 2009 and Form 10-K for fiscal year 2008. You can obtain copies of these reports on the SEC's Web site (www.sec.gov). Stockholders of BigBand Networks are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. BigBand Networks does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this November 3, 2009 press release, or to reflect the occurrence of unanticipated events. About BigBand Networks BigBand Networks, Inc. (NASDAQ: BBND - News) provides broadband service providers with innovative network solutions designed to make it easier to move, manage and monetize video. These solutions are based on BigBand's video-networking platforms that are built to enable efficient and reliable delivery across a wide range of services, including digital TV, high definition TV, advanced advertising, video-on-demand and interactive TV. BigBand Networks' customers include more than 200 service providers -- including seven of the ten largest service providers in the U.S. -- and leading cable and telco service providers in North America, Asia and Europe. BigBand Networks is based in Redwood City, Calif., with offices worldwide. For additional information about the company, please call +1.650.995.5000, email info@bigbandnet.com or visit www.bigbandnet.com. BigBand Networks' brand and product names are service marks, trademarks or registered trademarks of BigBand Networks, Inc. in the United States and other countries. All other marks are the property of their respective owners.
Contact: for BigBand Networks, Inc. Investor Relations: Erica Abrams, +1-415-217-5864 erica@blueshirtgroup.com Matthew Hunt, +1-415-489-2194 matt@blueshirtgroup.com Source: BigBand Networks, Inc.
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