Vyyo (VYYO) came up short on fourth-quarter sales but confirmed a contract with Cox.
The Norcross, Ga.-based cable networking gearmaker posted an adjusted loss of $7.5 million, or 41 cents a share, in the fourth quarter ended in December. That compares with a pro forma loss of 51 cents a share in the year-ago quarter. Analysts were looking for an adjusted loss of 39 cents a share, according to Reuters Research.
Sales for the quarter were a mere $1.7 million, up from the $1.1 million in the third quarter and well above the $300,000 in revenue a year ago. But analysts had expected sales of $2.7 million.
On an earnings call with analysts Monday morning, Vyyo executives said they expect to reach cash flow break-even at the end of 2008.
first reported last month, Cox signed on as a customer to have Vyyo supply its system overlay products to boost capacity in some parts of the cable company's network.
Analysts and investors see the Cox deal as a positive sign for future wins at other big U.S. cable companies looking to expand bandwidth on connections to businesses and homes.
The news comes as Vyyo obtained $35 million in financing from Goldman Sachs last week. It was also a week ago that the company named two cable industry veterans -- Wayne Davis and Jim Chiddix -- to lead the company.
"Our growing list of customer wins and the decisions by Wayne Davis and Jim Chiddix to join our management team clearly demonstrate Vyyo's value as a cost-efficient alternative to cable bandwidth enhancements," Chairman Davidi Gilo said in a press release.
For the full year, Vyyo's adjusted net loss was $23.2 million on $8 million in revenue.
Vyyo shares fell 14 cents, or 2%, to $8.07 early Monday.