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
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
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (3) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Cyber Security Expert Warns: You're Doing It Wrong
Sarah Thomas, Editorial Operations Director, 2/23/2015
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
Is FCC Weighing Net Neutrality Changes?
Mari Silbey, Independent Technology Editor, 2/25/2015
MWC: Let the Madness Begin
Ray Le Maistre, Editor-in-chief, 2/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.