Light Reading

RGB CEO: Envivio's IPO Jumped the Gun

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/5/2012
50%
50%

RGB Networks Inc. Chairman and CEO Jef Graham has a new punching bag: Envivio Inc. (NASDAQ: ENVI).

His old one was BigBand Networks Inc., RGB's former video gear and software rival that went public in March 2007 and stumbled through a rough patch when it had a hard time maintaining growth and predicting revenues. Arris Group Inc. (Nasdaq: ARRS) bought BigBand in 2011. (See BigBand IPO: Boing!, BigBand Looks to Resolve BigProblems and Arris Snaps Up BigBand .)

Envivio's in a similar situation now. After going public in April, Envivio had to tweak its revenue guidance in its second and third quarters, and its shares have taken a beating because of it. After getting a nice win at Time Warner Cable Inc. (NYSE: TWC) and a piece of Cablevision Systems Corp. (NYSE: CVC)'s multi-screen business, Envivio's had trouble repeating the feat with other tier 1 U.S. cable operators while seeing service providers in Europe tighten their belts. (See Rough Times Continue at Envivio and Envivio Shares Fall More Than 50% in 3 Hours.)

Graham thought BigBand was not ready to go public when it did because he believed its business was not predictable enough, and his opinion of Envivo is the same. But Graham insists he's not just piling on because a competitor is having a tough time. He says Envivio's woes rub off on others in the multi-screen encoding and packaging sector.

"It's not good for [Envivo], and it's not good for me. It creates a bad smell around the market," Graham says. "It makes IPO'ing hard for all of us."

RGB, which has financial backing from Comcast Corp. (Nasdaq: CMCSA, CMCSK), has had IPO aspirations for years but has so far failed to pull the trigger. One big barrier has been predictability. "This quarter [the fourth quarter] was predictable; the last one was horrible," Graham said, referring to the fourth quarter of 2011. "I don't want to have a public company when I can't entirely predict what will happen." (See RGB Relights Its IPO Fire .)

So, when will that be? "Perhaps next year, but it's not there yet. It has to be consistent," he said.

RGB is private and therefore does not report earnings, but Graham says RGB is on track for $15 million to $16 million in revenues in the fourth quarter, which would be up from $9.5 million a year ago. RGB, founded in 2003, has shipped $290 million in product during its lifetime and will pass the $300 million mark in January, Graham says.

In the meantime, he's poached another exec from Envivio as RGB looks to expand its international business: Scott Pranger, who is on board as VP of global channels. (See RGB Hires Sales Channel VP and RGB Raids Envivio .)

Graham hopes the move will help RGB take advantage of the buying habits of European and Asian service providers. While North American operators tend to buy point products from vendors (Comcast, Rogers Communications Inc. (Toronto: RCI) and Cox Communications Inc. are among RGB's customers), many in Europe and Asia typically go with system integrators, which is why RGB is eager to expand its channels strategy.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:17 AM
re: RGB CEO: Envivio's IPO Jumped the Gun


Jef Graham continues to preach patience, so long as RGB's investors remain patient. But if those backers get anxious for an exit and it isn't going to come in the form of an IPO, I still wonder if M&A will be the answer if they can get the right price. JB

Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
CEO Chat With Bill Gates
Steve Saunders, CEO and founder, Light Reading, 8/31/2015
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Time to Monetize Cable WiFi
Alan Breznick, Cable/Video Practice Leader, 8/31/2015
Like Us on Facebook
Twitter Feed
September 16, 2015
Wi-Fi First or Second?
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Cats with Phones
Tastes Like Fish Click Here
Please hold while I lick the phone.