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Cable/Video

BigBand Falls out of Tune

Shares in BigBand Networks Inc. (Nasdaq: BBND) plummeted more than 24 percent in early after-hours trading after the digital video specialist slashed revenue guidance for its third quarter.

BigBand, which just introduced a "universal" edge QAM product, said it expects to post revenues of $35 million to $39 million in the third quarter, well off the previous forecast of $54 million to $58 million. (See BigBand Cuts Q3 Forecast.)

BigBand said its ability to recognize switched digital video (SDV) revenue for some deployments in the third quarter were affected by unexpected levels of software customization and integration for some ongoing installations. (See SDV Deployment Snapshot.)

Continued "softness" in its data business will also result in an operating loss for the third quarter, the company noted in its statement.

The company also reported a "slowdown" of telco TV-related revenues, noting that a "major customer" had worked through some previously purchased inventory. That customer, not cited in the news release, could be Verizon Communications Inc. (NYSE: VZ), which has been a source of concern recently. (See BigBand Rebounds.)

"We are aggressively addressing these issues and will provide more specifics in our announcement of third quarter financial results in early November," BigBand CEO Amir Bassan-Eskenazi said in the company's statement.

BigBand shares were down $2.20 -- to $6.87 -- in after-hours trading Thursday. For the official trading day, BigBand shares closed down 16 cents (1.7%) at $9.07.

— Jeff Baumgartner, Site Editor, Cable Digital News

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