REDWOOD CITY, Calif. -- (Business Wire)
BigBand Networks, Inc. (NASDAQ:BBND), a leader in digital video
networking, today reported financial results for the third quarter ended
September 30, 2011.
For the third quarter, total revenues were $22.5 million as compared to
$26.8 million reported in the third quarter of 2010. GAAP net loss for
the third quarter of 2011 was $8.3 million, or ($0.12) per share,
compared to GAAP net loss of $7.3 million, or ($0.11) per share,
reported in the third quarter of 2010.
On a non-GAAP basis, the Company reported a net loss of $5.9 million, or
($0.08) per share, in the third quarter of 2011, which compares to a
non-GAAP net loss of $4.0 million, or ($0.06) per share, reported in the
third quarter of 2010. These non-GAAP results exclude $2.4 million of
stock compensation expense and related income taxes as compared to $3.2
million of stock compensation expense, restructuring credits and related
income taxes in the third quarter of 2010.
The GAAP to non-GAAP reconciling items, for the quarters ended September
30, 2011 and 2010 can be found in “The Reconciliations of GAAP to
Non-GAAP Financial Measures” attached to this press release.
The third quarter of 2011 GAAP and non-GAAP results include $1.6 million
in charges related to inventory reserve taken against legacy products,
as the Company transitions to its newer MSP products. In addition, these
GAAP and Non-GAAP results include approximately $0.5 million in general
and administrative expenses related to the acquisition of the Company by
ARRIS.
The Company closed the third quarter of 2011 with $119.8 million in
cash, cash equivalents and marketable securities.
On October 11, 2011, BigBand announced that it has entered into a
definitive agreement to be acquired by ARRIS for a purchase price of
$2.24 per share in cash. The acquisition will be conducted by means of a
tender offer for all of the outstanding shares of BigBand. The tender
offer was filed with the SEC on October 21, 2011.
Non-GAAP Financial Measures
BigBand reports all financial information required in accordance with
U.S. generally accepted accounting principles (GAAP), but we believe
that evaluating our ongoing operating results may be difficult to
understand if limited to reviewing only GAAP financial measures. Many of
our investors have requested that we disclose non-GAAP information
because it is useful in understanding our performance as it excludes
non-cash and other one-time charges or benefits that many investors feel
may obscure our true operating results. Likewise, management uses
non-GAAP measures to manage and assess the profitability of our business
going forward and does not consider stock-based compensation expense or
restructuring charges and related taxes in managing our operations.
Specifically, management does not consider these expenses/benefits when
developing and monitoring our budgets and spending. The economic
substance behind our decision to exclude stock-based compensation is
that this charge is non-cash in nature. We exclude restructuring charges
as they are one-time events. As a result, we use calculations of
non-GAAP operating loss, net loss, net loss per share and gross margin,
which exclude these expenses when evaluating our ongoing operations and
allocating resources within the organization.
As a result, our management believes it is useful, for itself and
investors, to have access to both GAAP information that includes such
charges and non-GAAP financial measures that exclude these charges
because management believes such information enables readers of these
financial results to have a better understanding of the overall
performance of our ongoing business operations in the periods presented.
Whenever we use a non-GAAP financial measure, we provide a
reconciliation of the non-GAAP financial measure to the most closely
applicable GAAP financial measure. Investors are encouraged to review
the related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures.
For a detailed discussion of these and other risk factors, please refer
to BigBand’s Quarterly Report on Form 10-Q for the three months ended
June 30, 2011 and other reports filed with the SEC. You can obtain
copies of the reports on the SEC's Web site (www.sec.gov).
Stockholders of BigBand Networks are cautioned not to place undue
reliance on our forward-looking statements, which speak only as of the
date such statements are made. BigBand Networks does not undertake any
obligation to publicly update any forward-looking statements to reflect
events, circumstances or new information after this October 24, 2011
press release, or to reflect the occurrence of unanticipated events.
About BigBand Networks
BigBand Networks, Inc. (NASDAQ:BBND) provides broadband service
providers with innovative digital video networking solutions designed to
make it easier to move, manage and monetize video. These solutions are
based on BigBand's video-networking platforms that are built to enable
efficient and reliable delivery across a wide range of services,
including digital TV, high definition TV, advanced advertising, IPTV,
video-on-demand and interactive TV. BigBand Networks has done business
with more than 200 customers in North America, Asia and Europe -
including eight of the ten largest cable and telco service providers in
North America. BigBand Networks is based in Redwood City, Calif., with
offices worldwide. For additional information about the company, please
call +1.650.995.5000, email info@bigbandnet.com
or visit http://www.bigbandnet.com.
BigBand Networks' brand and product names are service marks, trademarks
or registered trademarks of BigBand Networks, Inc. in the United States
and other countries. All other marks are the property of their
respective owners.
| BigBand Networks, Inc. |
|
Condensed Consolidated Balance Sheets
|
| (In thousands, Unaudited) |
|
| |
| |
| | As of September 30, | | As of December 31, |
| |
| 2011 |
| |
| 2010 |
|
| ASSETS | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
16,797
| | |
$
|
21,537
| |
|
Marketable securities
| |
|
103,015
|
| |
|
122,012
|
|
|
Total cash, cash equivalents and marketable securities
| | |
119,812
| | | |
143,549
| |
|
Accounts receivable, net
| | |
10,211
| | | |
5,001
| |
|
Inventories, net
| | |
8,247
| | | |
11,117
| |
|
Prepaid expenses and other current assets
| |
|
3,686
|
| |
|
4,190
|
|
|
Total current assets
| | |
141,956
| | | |
163,857
| |
| | | |
|
|
Property and equipment, net
| | |
6,454
| | | |
8,088
| |
|
Goodwill
| | |
1,656
| | | |
1,656
| |
|
Other non-current assets
| |
|
5,963
|
| |
|
7,170
|
|
|
Total assets
| |
$
|
156,029
|
| |
$
|
180,771
|
|
| | | |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
|
Current liabilities:
| | | | |
|
Accounts payable
| |
$
|
5,634
| | |
$
|
4,656
| |
|
Accrued compensation and related benefits
| | |
6,110
| | | |
5,178
| |
|
Current portion of deferred revenues, net
| | |
15,941
| | | |
18,143
| |
|
Current portion of other liabilities
| |
|
3,822
|
| |
|
4,266
|
|
|
Total current liabilities
| | |
31,507
| | | |
32,243
| |
| | | |
|
|
Deferred revenues, net, less current portion
| | |
6,787
| | | |
8,327
| |
|
Other liabilities, less current portion
| | |
1,402
| | | |
1,692
| |
|
Accrued long-term Israeli severance pay
| | |
4,163
| | | |
4,376
| |
| | | |
|
|
Stockholders’ equity:
| | | | |
|
Common stock
| | |
72
| | | |
70
| |
|
Additional paid-in-capital
| | |
307,044
| | | |
299,003
| |
|
Accumulated other comprehensive (loss) income
| | |
(506
|
)
| | |
253
| |
|
Accumulated deficit
| |
|
(194,440
|
)
| |
|
(165,193
|
)
|
|
Total stockholders’ equity
| |
|
112,170
|
| |
|
134,133
|
|
|
Total liabilities and stockholders’ equity
| |
$
|
156,029
|
| |
$
|
180,771
|
|
| BigBand Networks, Inc. |
|
Condensed Consolidated Statements of Operations
|
| (In thousands, except per share amounts, Unaudited) |
|
| |
| |
| |
| |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| |
| 2011 |
| |
| 2010 |
| |
| 2011 |
| |
| 2010 |
|
| | | | | | | |
|
|
Net revenues:
| | | | | | | | |
|
Products
| |
$
|
13,921
| | |
$
|
16,261
| | |
$
|
33,708
| | |
$
|
57,747
| |
|
Services
| |
|
8,575
|
| |
|
10,490
|
| |
|
26,931
|
| |
|
27,632
|
|
|
Total net revenues
| |
|
22,496
|
| |
|
26,751
|
| |
|
60,639
|
| |
|
85,379
|
|
| | | | | | | |
|
|
Cost of net revenues:
| | | | | | | | |
|
Products
| | |
8,931
| | | |
10,208
| | | |
20,878
| | | |
33,534
| |
|
Services
| |
|
2,796
|
| |
|
2,872
|
| |
|
8,631
|
| |
|
9,181
|
|
|
Total cost of net revenues
| |
|
11,727
|
| |
|
13,080
|
| |
|
29,509
|
| |
|
42,715
|
|
|
Gross profit
| |
|
10,769
|
| |
|
13,671
|
| |
|
31,130
|
| |
|
42,664
|
|
| | | | | | | |
|
|
Operating expenses:
| | | | | | | | |
|
Research and development
| | |
10,020
| | | |
12,432
| | | |
32,080
| | | |
39,034
| |
|
Sales and marketing
| | |
4,689
| | | |
4,483
| | | |
14,774
| | | |
16,531
| |
|
General and administrative
| | |
4,335
| | | |
4,024
| | | |
11,516
| | | |
12,560
| |
|
Restructuring (credits) charges
| |
|
-
|
| |
|
(139
|
)
| |
|
2,007
|
| |
|
900
|
|
|
Total operating expenses
| |
|
19,044
|
| |
|
20,800
|
| |
|
60,377
|
| |
|
69,025
|
|
| | | | | | | |
|
|
Operating loss
| | |
(8,275
|
)
| | |
(7,129
|
)
| | |
(29,247
|
)
| | |
(26,361
|
)
|
|
Interest income
| | |
191
| | | |
225
| | | |
615
| | | |
1,077
| |
|
Other income (expense), net
| |
|
25
|
| |
|
(134
|
)
| |
|
17
|
| |
|
(317
|
)
|
|
Loss before provision for income taxes
| | |
(8,059
|
)
| | |
(7,038
|
)
| | |
(28,615
|
)
| | |
(25,601
|
)
|
|
Provision for income taxes
| |
|
192
|
| |
|
216
|
| |
|
632
|
| |
|
63
|
|
|
Net loss
| |
$
|
(8,251
|
)
| |
$
|
(7,254
|
)
| |
$
|
(29,247
|
)
| |
$
|
(25,664
|
)
|
| | | | | | | |
|
|
Basic and diluted net loss per common share
| |
$
|
(0.12
|
)
| |
$
|
(0.11
|
)
| |
$
|
(0.42
|
)
| |
$
|
(0.38
|
)
|
| | | | | | | |
|
|
Shares used in basic and diluted net loss per common share
| |
|
71,203
|
| |
|
68,853
|
| |
|
70,448
|
| |
|
68,067
|
|
| BigBand Networks, Inc. |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
| (In thousands, except per share amounts, Unaudited) |
|
| |
| |
| |
| | Three Months Ended September 30, 2011 |
| | GAAP Results | | Stock-based
Compensation
and Income
Taxes | | Non-GAAP
Results |
| | | | | |
|
| | | | | |
|
|
Net revenues:
| | | | | | |
|
Products
| |
$
|
13,921
| | |
$
|
-
| | |
$
|
13,921
| |
|
Services
| |
|
8,575
|
| |
|
-
|
| |
|
8,575
|
|
|
Total net revenues
| |
|
22,496
|
| |
|
-
|
| |
|
22,496
|
|
| | | | | |
|
|
Cost of net revenues:
| | | | | | |
|
Products
| | |
8,931
| | | |
(176
|
)
| | |
8,755
| |
|
Services
| |
|
2,796
|
| |
|
(187
|
)
| |
|
2,609
|
|
|
Total cost of net revenues
| |
|
11,727
|
| |
|
(363
|
)
| |
|
11,364
|
|
|
Gross profit
| |
|
10,769
|
| |
|
363
|
| |
|
11,132
|
|
| | | | | |
|
|
Operating expenses:
| | | | | | |
|
Research and development
| | |
10,020
| | | |
(875
|
)
| | |
9,145
| |
|
Sales and marketing
| | |
4,689
| | | |
(388
|
)
| | |
4,301
| |
|
General and administrative
| |
|
4,335
|
| |
|
(641
|
)
| |
|
3,694
|
|
|
Total operating expenses
| |
|
19,044
|
| |
|
(1,904
|
)
| |
|
17,140
|
|
| | | | | |
|
|
Operating loss
| | |
(8,275
|
)
| | |
2,267
| | | |
(6,008
|
)
|
|
Interest income
| | |
191
| | | |
-
| | | |
191
| |
|
Other income
| |
|
25
|
| |
|
-
|
| |
|
25
|
|
|
Loss before provision for income taxes
| | |
(8,059
|
)
| | |
2,267
| | | |
(5,792
|
)
|
|
Provision for income taxes
| |
|
192
|
| |
|
(85
|
)
| |
|
107
|
|
|
Net loss
| |
$
|
(8,251
|
)
| |
$
|
2,352
|
| |
$
|
(5,899
|
)
|
| | | | | |
|
|
Basic and diluted net loss per common share
| |
$
|
(0.12
|
)
| | | |
$
|
(0.08
|
)
|
| | | | | |
|
|
Shares used in basic and diluted net loss per common share
| |
|
71,203
|
| | | |
|
71,203
|
|
| BigBand Networks, Inc. |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
| (In thousands, except per share amounts, Unaudited) |
|
| |
| |
| |
| |
| | Nine Months Ended September 30, 2011 |
| | GAAP Results | | Stock-based
Compensation
and Income
Taxes | | Restructuring
charges | | Non-GAAP
Results |
| | | | | | | |
|
| | | | | | | |
|
|
Net revenues:
| | | | | | | | |
|
Products
| |
$
|
33,708
| | |
$
|
-
| | |
$
|
-
| | |
$
|
33,708
| |
|
Services
| |
|
26,931
|
| |
|
-
|
| |
|
-
|
| |
|
26,931
|
|
|
Total net revenues
| |
|
60,639
|
| |
|
-
|
| |
|
-
|
| |
|
60,639
|
|
| | | | | | | |
|
|
Cost of net revenues:
| | | | | | | | |
|
Products
| | |
20,878
| | | |
(638
|
)
| | |
-
| | | |
20,240
| |
|
Services
| |
|
8,631
|
| |
|
(626
|
)
| |
|
-
|
| |
|
8,005
|
|
|
Total cost of net revenues
| |
|
29,509
|
| |
|
(1,264
|
)
| |
|
-
|
| |
|
28,245
|
|
|
Gross profit
| |
|
31,130
|
| |
|
1,264
|
| |
|
-
|
| |
|
32,394
|
|
| | | | | | | |
|
|
Operating expenses:
| | | | | | | | |
|
Research and development
| | |
32,080
| | | |
(3,080
|
)
| | |
-
| | | |
29,000
| |
|
Sales and marketing
| | |
14,774
| | | |
(1,102
|
)
| | |
-
| | | |
13,672
| |
|
General and administrative
| | |
11,516
| | | |
(2,048
|
)
| | |
-
| | | |
9,468
| |
|
Restructuring charges
| |
|
2,007
|
| |
|
-
|
| |
|
(2,007
|
)
| |
|
-
|
|
|
Total operating expenses
| |
|
60,377
|
| |
|
(6,230
|
)
| |
|
(2,007
|
)
| |
|
52,140
|
|
| | | | | | | |
|
|
Operating loss
| | |
(29,247
|
)
| | |
7,494
| | | |
2,007
| | | |
(19,746
|
)
|
|
Interest income
| | |
615
| | | |
-
| | | |
-
| | | |
615
| |
|
Other income
| |
|
17
|
| |
|
-
|
| |
|
-
|
| |
|
17
|
|
|
Loss before provision for income taxes
| | |
(28,615
|
)
| | |
7,494
| | | |
2,007
| | | |
(19,114
|
)
|
|
Provision for (benefit from) income taxes
| |
|
632
|
| |
|
(229
|
)
| |
|
-
|
| |
|
403
|
|
|
Net loss
| |
$
|
(29,247
|
)
| |
$
|
7,723
|
| |
$
|
2,007
|
| |
$
|
(19,517
|
)
|
| | | | | | | |
|
|
Basic and diluted net loss per common share
| |
$
|
(0.42
|
)
| | | | | |
$
|
(0.28
|
)
|
| | | | | | | |
|
|
Shares used in basic and diluted net loss per common share
| |
|
70,448
|
| | | | | |
|
70,448
|
|
| BigBand Networks, Inc. |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
| (In thousands, except per share amounts and percentages,
Unaudited) |
|
| |
| |
| |
| |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| |
| 2011 |
| |
| 2010 |
| |
| 2011 |
| |
| 2010 |
|
| | | | | | | |
|
|
GAAP and Non-GAAP net revenues as reported
| |
$
|
22,496
|
| |
$
|
26,751
|
| |
$
|
60,639
|
| |
$
|
85,379
|
|
| | | | | | | |
|
|
GAAP cost of net revenues as reported
| |
$
|
11,727
| | |
$
|
13,080
| | |
$
|
29,509
| | |
$
|
42,715
| |
|
Stock-based compensation expense
| |
|
(363
|
)
| |
|
(546
|
)
| |
|
(1,264
|
)
| |
|
(1,722
|
)
|
|
Non-GAAP cost of net revenues
| |
$
|
11,364
|
| |
$
|
12,534
|
| |
$
|
28,245
|
| |
$
|
40,993
|
|
| | | | | | | |
|
|
GAAP gross profit as reported
| |
$
|
10,769
| | |
$
|
13,671
| | |
$
|
31,130
| | |
$
|
42,664
| |
|
Stock-based compensation expense
| |
|
363
|
| |
|
546
|
| |
|
1,264
|
| |
|
1,722
|
|
|
Non-GAAP gross profit
| |
$
|
11,132
|
| |
$
|
14,217
|
| |
$
|
32,394
|
| |
$
|
44,386
|
|
| | | | | | | |
|
|
As a percentage of net revenues:
| | | | | | | | |
|
GAAP gross profit as reported
| |
|
47.9
|
%
| |
|
51.1
|
%
| |
|
51.3
|
%
| |
|
50.0
|
%
|
|
Non-GAAP gross profit
| |
|
49.5
|
%
| |
|
53.1
|
%
| |
|
53.4
|
%
| |
|
52.0
|
%
|
| | | | | | | |
|
|
GAAP operating loss as reported
| |
$
|
(8,275
|
)
| |
$
|
(7,129
|
)
| |
$
|
(29,247
|
)
| |
$
|
(26,361
|
)
|
|
Stock-based compensation expense:
| | | | | | | | |
|
- Cost of net revenues
| | |
363
| | | |
546
| | | |
1,264
| | | |
1,722
| |
|
- Research and development
| | |
875
| | | |
1,257
| | | |
3,080
| | | |
3,944
| |
|
- Sales and marketing
| | |
388
| | | |
424
| | | |
1,102
| | | |
1,735
| |
|
- General and administrative
| | |
641
| | | |
1,063
| | | |
2,048
| | | |
3,272
| |
|
Restructuring (credits) charges
| |
|
-
|
| |
|
(139
|
)
| |
|
2,007
|
| |
|
900
|
|
|
Non-GAAP operating loss
| |
$
|
(6,008
|
)
| |
$
|
(3,978
|
)
| |
$
|
(19,746
|
)
| |
$
|
(14,788
|
)
|
| | | | | | | |
|
|
GAAP net loss as reported
| |
$
|
(8,251
|
)
| |
$
|
(7,254
|
)
| |
$
|
(29,247
|
)
| |
$
|
(25,664
|
)
|
|
Stock-based compensation expense
| | |
2,267
| | | |
3,290
| | | |
7,494
| | | |
10,673
| |
|
Restructuring (credits) charges
| | |
-
| | | |
(139
|
)
| | |
2,007
| | | |
900
| |
|
Tax benefits (provision)
| |
|
85
|
| |
|
84
|
| |
|
229
|
| |
|
(41
|
)
|
|
Non-GAAP net loss
| |
$
|
(5,899
|
)
| |
$
|
(4,019
|
)
| |
$
|
(19,517
|
)
| |
$
|
(14,132
|
)
|
| | | | | | | |
|
|
Basic and diluted Non-GAAP net loss per common share
| |
$
|
(0.08
|
)
| |
$
|
(0.06
|
)
| |
$
|
(0.28
|
)
| |
$
|
(0.21
|
)
|
| | | | | | | |
|
|
Shares used in basic and diluted Non-GAAP net loss per common share
| |
|
71,203
|
| |
|
68,853
|
| |
|
70,448
|
| |
|
68,067
|
|
Contacts:
for BigBand Networks, Inc.
Investor Relations:
Erica Abrams,
+1-415-217-5864
erica@blueshirtgroup.com
Matthew
Hunt, +1-415-489-2194
matt@blueshirtgroup.com
Source: BigBand Networks, Inc.
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