What Digeo Was Making

11:10 AM -- Arris Group Inc. (Nasdaq: ARRS) snapped up the assets of Digeo Inc. for a modest $20 million, but now, thanks to the magic of the Securities and Exchange Commission (SEC) , a new 8-K/A filing offers a glimpse at the financials that were weighing down Paul Allen's set-top box and software firm. (See Bucking for Digeo and Arris Digs Digeo .)

And, as many probably already suspected, they aren't pretty, offering more evidence that Arris is banking on the long-term potential of what Digeo brings to the table as Arris develops a strategy to develop fancy, do-it-all, "gateway" products for MSOs. (See Digeo Gives Arris Multimedia Gateway Potential .)

Through the end of June of 2009, Digeo had $3.2 million in revenues, coupled with a net loss of $14.8 million, according to the Arris filing made on Friday, Dec. 4.

And those first-half numbers indicated an improving trend over Digeo's 2008 results. Last year, Digeo pulled in revenues of just $5 million, to go along with a net loss of $37.7 million. According to the filing, Digeo had an accumulated deficit of $553.99 million during its 10-year history -- putting it on par with the $500 million deficit video-on-demand service and software upstart Diva Systems Corp. rang up before filing for bankruptcy in 2002.

Although Arris is best known for selling direct to MSOs, it appears that it intends to maintain the retail end of the Digeo Moxi box business for the foreseeable future. (See Arris Slashes Moxi Retail Prices .)

— Jeff Baumgartner, Site Editor, Cable Digital News

Be the first to post a comment regarding this story.
Sign In