Will Vyyo Fly-o?
"Cable system operators are recognizing the ability of our UltraBand spectrum overlay platform to provide an unparalleled increase in upstream capacity and to enable the delivery to subscribers of 100 channels of HDTV, HDTV on-demand, and T1, high-bandwidth Docsis 3.0 and Ethernet services," said Wayne Davis, CEO of Vyyo, in the earnings statement. (See Vyyo Posts Q1)
While cable operators may be recognizing the technology, they don't appear to be buying much of it.
Vyyo reported sales of only $0.6 million for the first quarter of 2007, a 75 percent decline from the $2.4 million generated in the same period a year ago.
Vyyo's loss for the first quarter of 2007 totaled $11 million, including a one-time non-cash charge of $3.3 million.
On the bright side, Vyyo counted $31.2 million in cash as of March 31. At the current burn rate, Vyyo can still fly-o for another year. That's a long enough runway to determine if MSOs really consider themselves bandwidth constrained, and if so, whether Vyyo's product set is part of the solution.
Vyyo trumpeted the hiring of Davis, formerly CTO at Charter Communications Inc. , as a sign of MSO enthusiasm for the vendor's spectrum overlay technology. (See Vyyo Adds New CEO, Vice Chairman).
Maybe so. Or, it could simply mark the opportunity for a steady gig after another reorg at beleaguered Charter. Tony Werner, now the CTO of Comcast Corp. (Nasdaq: CMCSA, CMCSK), served as CEO of vendor Aurora Networks Inc. for a year until he could find a more appealing position at a carrier.
— Michael Harris, Chief Analyst, Cable Digital News