BigBand's After-Hours Free Fall
BigBand shares closed Thursday at $13.98, up 11.9 percent, but were down $2.87, or 20.53 percent, to $11.11 in early after-hours trading.
The company, which makes gear and software for switched digital video and next-generation cable modem termination systems, posted earnings of $1.7 million, significantly less than the $5.1 million analysts, on average, had expected.
Revenues of $54.5 million, up 45 percent year on year, came in just short of the $55.2 million Wall Street had forecast. (See BigBand Revenues Jump 45%.)
BigBand shares, on a rollercoaster ride of late, are off more than 30 percent since its debut as a public company in March. (See BigBand IPO: Boing! and BigBand Shares on Downward Swing.)
The company said results were affected by elements such as stock compensation and product and service costs. During the conference call Thursday, BigBand said its ability to forecast for the second quarter was partially impaired because of funds that had to be applied toward its intellectual property battle with Imagine Communications .
BigBand drew first blood by suing Imagine, but Imagine filed a counter claim late last week. (See BigBand Throws the Book at Imagine.)
During Thursday's call, analysts also pressed BigBand about its competitive position at Comcast Corp. (Nasdaq: CMCSA, CMCSK) relative to switched digital video (SDV), a technique designed to help MSOs use bandwidth more efficiently. Comcast has already selected gear, including advanced edge QAMs, for some initial SDV work from BigBand rivals such as Harmonic Inc. (Nasdaq: HLIT) and Arris Group Inc. (Nasdaq: ARRS). (See Comcast Taps Arris for Edge QAM Initiative and Comcast Puts SDV Vendors to the Test.)
Although BigBand had nothing new to announce involving Comcast, the vendor believes more business opportunities will open up as the MSO expands its SDV strategy.
"We don't view that the game is up," said Frederick Ball, BigBand's chief financial officer.
— Jeff Baumgartner, Site Editor, Cable Digital News