BigBand Networks, Inc. ( BBND) Q3 2010 Earnings Call Transcript October 19, 2010 5:00 pm ET Executives Erica Abrams – IR, The Blueshirt Group Amir Bassan-Eskenazi – Chairman, President & CEO Ravi Narula – CFO Analysts Blair King – Avondale Partners Victor Chiu – Morgan Keegan Larry Harris – CL King & Associates Presentation Operator
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Now, I will turn the call over to Amir. Please go ahead.Amir Bassan-Eskenazi Thanks, Erica. Hello and thank you all for joining us today, as we report our third quarter 2010 results. As you know from our press release, our performance in the quarter was in line with the outlook we provided last quarter. Revenues were $26.8 million and our non-GAAP results were $0.06 per share. During the quarter, we used $10.8 million in cash. We expect to continue in this cash in the fourth quarter. R&D expenses remain a high priority as we invest in our product and technology for the June certain milestones, specifically in bringing the application to our MSP broadcom (ph). Earlier this morning, we announced the latest advancement in our MSP platform that will converge our innovation in ultra-dense QAM with our availability multi-application industry. The differentiator of the product are QAM modulation in the same platform as media processing, high reliability that our customer demand, rapidly flowing (ph) of applications and capacity expansion, as well as unique capabilities such as dynamic allocations of bandwidth between services. BigBand’s platform base QAM architecture marks a shift from the traditional single-purpose box approach and provides a level of reliability, configuration, monitoring and overall simplicity that are a paradigm shift in the industry. In addition to the platform benefits, we believe our MSP QAM is the industry-leading order in terms of density, which is critical as our customers start deploying at increasing amount of narrowcase services. It’s been order closely with Q1 customers on trial of the MSP QAM and have received positive feedback. Shifting to another application of the MSP, local ad insertion, we achieved a key milestone in the quarter when we received booking from both cable and other (ph) customer for this application. While these bookings were modest, we believe these initial success validate our core strategy and the market potential of the industry. Moving to our SDV (ph) product, we remain a clear market leader in SDV. We have over 37 million household parts (ph).
The household number did not increase in the quarter as customer deployed previously purchased SDV shipments. Our next type of customers, however, including customers outside of North America is evaluating our SDV technology.We are also working with existing customers on expansion of their footprint as they deploy additional HD services as well as plan their IPTV rule-outs over our VIP PASS solution. Shifting to broadcast solutions, there remain a steady configuration (ph) of our performance. We have a number of initiatives in this category where we are working on extending the functionality of the solutions. Moving to the international opportunity, we continue to invest and make progress with our channels and partners. During the quarter, we asserted our strategy. We diversified our revenues with the help of one of our Board Members, Harald Braun, with background and expertise, make him a perfect fit for this activity. As you know from our 8-K filed earlier today, Harald has agreed to join us as an executive for interview in career to oversee the execution of our global growth and market strategy, including our international strategy. It is a communicative (ph) role, you will look closely with me while also remaining the Board Member and continuing to add tremendous value to our board. Harald has more than 25 years of experience in delivering networking gear to various (ph) cable, Telco and wireless carriers worldwide. First, the CEO of Siemens Communications in the U.S. and is an executive in Nokia and Siemens and then a COO of Aviat Networks. Together with the rest of the team, I look forward to Harald’s leadership in refining our execution efforts as well as moving forward with several important customer opportunities. In summary, during the first quarter, we made significant progress in advancing and investing in key areas of our product portfolio especially in regard to the milestones we discussed with the MSP. We believe the MSP is a highly differentiated platform that have its (ph) key requirements of our customers and position us well for success in 2011. Read the rest of this transcript for free on seekingalpha.com