Switched digital video and data head-end equipment vendor Bigband Networks has warned that its Q3 revenues will be in the $35-39 million range,as opposed to the expected $54-58 million. The lowered revenue guidance follows a profit warning issued at the beginning of August when the vendor announced its Q2 and H1 results. As a result of lower revenue expectations, BigBand expects to report an operating loss for the third quarter.
Bigband identified three reasons for its lower than expected revenue.
- Ongoing deployments have required more software customization and integration than originally expected. This impacted the company’s ability to recognize switched digital revenue for some deployments in the third quarter.
- A slowdown in Telco-TV revenue, as its major customer worked through some previously purchased inventory.
- Continued softness in its data business.