BigBand Networks 8-K Bigband Networks Announces Third Quarter Results and Restructuring Plan

Exhibit 99.1

FOR IMMEDIATE RELEASE

Investor Contact:	Erica Abrams
	The Blueshirt Group for BigBand Networks
	+1.415.217.5864
	erica@blueshirtgroup.com

BIGBAND NETWORKS ANNOUNCES THIRD QUARTER RESULTS AND RESTRUCTURING PLAN

Appoints Chief Operating Officer; Announces Decision to Retire Cuda CMTS Platform

REDWOOD CITY, Calif., October 30, 2007—BigBand Networks, Inc., (NASDAQ: BBND) today announced financial results for the three and nine months ended September 30, 2007.

Revenues for the third quarter of 2007 were $38.5 million, a decrease of 10% from the third quarter of 2006. GAAP net loss for the third quarter of 2007 was $12.2 million, or $(0.21) per diluted share compared to GAAP net income of $1.6 million, or $0.03 per diluted share, in the third quarter of 2006. GAAP gross margins for the third quarter of 2007 were 36% compared to 52% in the third quarter of 2006. In the third quarter of 2007, the Company‘s GAAP operating loss was $12.9 million, compared to an operating profit of $2.9 million in the third quarter of 2006.

GAAP results for the third quarter of 2007 include $3.2 million in stock-based compensation expense, $143,000 in amortization of intangibles, and $5.8 million in fixed assets and inventory charges associated with the retirement of the Cuda CMTS platform. In the third quarter of 2006, the Company incurred $0.6 million in stock-based compensation expense, $143,000 in amortization of intangibles and $1.2 million in preferred stock warrant expense. Non-GAAP results exclude such elements. A reconciliation of GAAP and non-GAAP results is included as part of this release as well as on the investor relations section of the Company’s website.

On a non-GAAP basis, the Company had a net loss of $2.7 million, or $0.05 per diluted share, in the third quarter of 2007, compared to net income of $3.5 million, or $0.06 per diluted share in the third quarter of 2006. Non-GAAP gross margins were 51.1% for the third quarter of 2007 compared to 52.0% in the third quarter of 2006. Non-GAAP operating loss for the third quarter of 2007 was $3.8 million as compared to a profit of $3.6 million in the third quarter of 2006.

In addition, BigBand announced a restructuring plan designed to realign resources and significantly increase its efforts on video networking. As part of this plan, the Company will reduce its workforce by 15% and retire its Cuda CMTS platform.

As part of the Company’s restructuring efforts, David Heard has been appointed chief operating officer. Heard was previously general manager of product operations and will now assume combined responsibility for research & development, marketing, sales, services and operations. Heard joined BigBand earlier in 2007, bringing with him experience in leadership positions at a number of data and telecom companies, including Tekelec, Lucent, AT&T and Somera Communications.

“Since our revised guidance announcement, we have re-evaluated our business, reviewed our market opportunities and conferred with our customers,” commented Amir Bassan-Eskenazi, president and CEO of BigBand Networks. “We have decided to focus on our unique core competency—video—and no longer commit resources to the Cuda CMTS platform. In addition, we will reduce our workforce across the company to more closely align spending with near-term revenue opportunities. While our current operating challenges will take some time to work through, we expect to emerge from the next few quarters as a stronger, more focused company.”

Concluded Bassan-Eskenazi, “We believe that switched digital video, edge QAM and Telco TV offer BigBand a significant opportunity for growth over the coming years and that addressable advertising and IPTV will create additional opportunities. We continue to be selected for a broad range of switched digital video deployments by major MSO customers. In the third quarter, two additional MSOs selected us for SDV deployments. These recent wins, as well as our long-term TelcoTV opportunities, give us confidence about our long-term growth prospects.”

Business Outlook

Based on current expectations, management provided the following outlook for its business in the fourth quarter of 2007:

• Net revenues are anticipated to be in the range of approximately $27 to $33 million.

• GAAP gross margins are anticipated to be in the range of 45% to 48%, which includes approximately $0.4 million in stock-based compensation.

• GAAP operating expenses are anticipated to be in the range of $25.5 to 26.5 million, which includes approximately $2.5 million in stock-based compensation, $143,000 in amortization of intangibles and approximately $0.8 million of litigation-related expenses.

• Additionally, we expect to incur one-time charges associated with the restructuring of our business in the range of $3 to $5 million, which includes employee severance and lease termination costs.

• GAAP provision for income tax is anticipated to be in the range of approximately $0.5 to $0.7 million, and non-GAAP provision for income tax is anticipated to be in the range of approximately $0.2 to $0.4 million.

• Fully diluted weighted average shares are anticipated to be in the range of 58 to 60 million shares.

• This equates to GAAP loss per share in the range of $0.31 to $0.22 and a non-GAAP loss per share in the range of $0.18 to 0.12.

The following table shows our Non-GAAP anticipated results for the quarter ending December 31, 2007 reconciled to the GAAP anticipated results. Our Non-GAAP anticipated results exclude (i) amortization of intangible assets, (ii) stock-based compensation, and (iii) restructuring-related expenses.

	Estimated per Share
	Low			High
GAAP net income (loss)	$	(0.31	)	$	(0.22	)
Amortization of intangibles and stock-based compensation		0.05			0.05
Restructuring-related expenses		0.08			0.05
Non-GAAP net income (loss)	$	(0.18	)	$	(0.12	)

Non-GAAP Financial Measures

BigBand reports all financial information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its 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 this non-GAAP information because it is useful in understanding our performance as it excludes non-cash and other special charges that many investors feel may obscure our true operating costs. Likewise, management uses these non-GAAP measures to manage and assess the profitability of its business and does not consider amortization of intangible assets, preferred stock warrant expense or stock-based compensation expense, which are non-cash charges, in managing its operations. Specifically, we do not consider stock-based compensation expense when developing and monitoring budgets and spending. The economic substance behind our decision to exclude preferred stock warrant expense, share-based compensation and amortization of intangible assets relates to these charges being non-cash in nature. As a result, BigBand uses calculations of non-GAAP operating income, net income, net income per share and gross margin, which exclude, net of tax, amortization of intangible assets, preferred stock warrant expense, and stock-based compensation, to evaluate its ongoing operations and to allocate resources within the organization.

BigBand also excludes restructuring charges, including (i) employee severance and other termination benefits, (ii) lease termination costs and other expenses associated with exiting a facility, (iii) impairment of inventory relating to the retirement of our CMTS platform and (iv) retirement of CMTS-related fixed assets, from its non-GAAP financial measure, including its calculations of non-GAAP gross margins, operating expense, net income (loss) and net income

(loss) per share. Expenses related to severance and inventory impairment will have a significant cash impact on BigBand’s results of operations, including its net income (loss) as measured in accordance with GAAP. However, BigBand’s management believes such charges incurred to realign its operating expenses with its anticipated future revenues and, consequently, does not consider these costs as a normal component of its expenses related to ongoing operations. As a result, BigBand’s management believes it is useful for itself and investors to review both GAAP information that includes such charges and non-GAAP financial measures that exclude these charges to have a better understanding of the overall performance of BigBand’s ongoing business operations and its performance in the periods presented.

Whenever BigBand uses such a non-GAAP financial measure, it provides a reconciliation of non-GAAP financial measures 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 measure.

Conference Call Details for October 30, 2007

BigBand Networks will host a corresponding conference call and live webcast at 2:00 p.m. Pacific Standard Time today. To access the conference call, dial +1.800.240.8621 or +1.303.262.2004 (outside the U.S. and Canada). The webcast will be available live on the Investor Relations section of the Company’s corporate website atwww.bigbandnet.com and via replay beginning approximately two hours after the completion of the call until the Company's announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 4:00 p.m. Pacific Standard Time on October 30, 2007 until 11:59 p.m. Pacific Standard Time on November 6, 2007, by dialing +1.800.405.2236 (+1.303.590.3000 for callers outside the U.S. and Canada) and entering pass code 11099813.

Cautionary Statement

The statements in this release relating to BigBand reducing its workforce, focusing exclusively on video, no longer committing resources to Cuda, emerging as a stronger more focused company, significant opportunity for growth over the coming years, additional opportunities in advertising and IPTV, advanced market leadership, and our business outlook with respect to the quarter ending December 31, 2007 (including revenues, gross margins, operating expenses, on-time charges, GAAP and non-GAAP tax provision, anticipated shares outstanding, and GAAP and non-GAAP earnings per share) and expenses having a significant cash impact are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: changes in demand for video services, the market acceptance of our products; the fluctuations in our

gross margins; the concentration of our customer base; competitive developments including pricing pressures; the timing of recognition of a significant portion of our net revenues given the complex systems integration involved; the level of orders that are received and can be shipped in a given quarter; our ability to efficiently exit our Cuda business and the general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to BigBand’s Report on Form 10-Q (“Form 10-Q”) dated August 10, 2007. You can obtain a copy of the Form 10-Q 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 30, 2007 press release, or to reflect the occurrence of unanticipated events.

About BigBand Networks

BigBand Networks, Inc. (NASDAQ:BBND) provides broadband service providers with innovative network 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, IP video, addressable advertising, video-on-demand, interactive TV, and video telephony. BigBand Networks’ customers include more than 200 service providers—including six of the ten largest service providers in the U.S.—and leading cable and telco service providers in North America, Asia, Europe and Latin 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 visitwww.bigbandnet.com.

BigBand Networks, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

	As of September 30, 2007			As of December 31, 2006
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	56,080		$	38,570
Marketable securities		84,699			26,904
Total cash, cash equivalents and marketable securities		140,779			65,474
Trade receivables, net		38,954			33,988
Inventories		7,004			7,153
Prepaid expenses and other current assets		4,810			2,511
Total current assets		191,547			109,126
Property and equipment, net		14,514			12,788
Goodwill and other intangible assets, net		2,533			2,962
Other non-current assets		5,209			4,174
Total assets	$	213,803		$	129,050
Liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)
Current liabilities:
Current portion of loans payable and capital leases	$	265		$	5,937
Preferred stock warrant liabilities		—			3,152
Accrued compensation and related benefits		7,504			7,354
Accounts payable		15,601			15,109
Deferred revenues, net		39,408			39,553
Accrued warranty		2,831			3,241
Other current liabilities		6,581			9,724
Total current liabilities		72,190			84,070
Deferred revenues, net, less current portion		18,816			11,049
Loans payable and capital leases, less current portion		246			8,599
Accrued warranty, less current portion		1,282			895
Accrued long-term severance pay fund		2,886			2,744
Redeemable convertible preferred stock		—			117,307
Stockholders’ equity (deficit):
Common stock		59			12
Additional paid-in capital		241,588			17,063
Treasury stock		(113	)		—
Deferred stock-based compensation		(421	)		(1,405	)
Accumulated other comprehensive income		130			9
Accumulated deficit		(122,860	)		(111,293	)
Total stockholders’ equity (deficit)		118,383			(95,614	)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$	213,803		$	129,050

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,
	2007			2006			2007			2006
Net revenues:
Products	$	29,942		$	37,094		$	121,858		$	97,313
Services		8,608			5,970			23,988			16,309
Total net revenues		38,550			43,064			145,846			113,622
Cost of net revenues:
Products		21,284			18,382			62,113			49,486
Services		3,569			2,393			10,549			6,689
Total cost of net revenues		24,853			20,775			72,662			56,175
Gross profit		13,697			22,289			73,184			57,447
Operating expenses:
Research and development		12,869			9,316			39,619			26,600
Sales and marketing		9,907			7,045			31,335			20,965
General and administrative		3,668			2,922			11,305			8,048
Amortization of purchased intangible assets		143			143			429			429
Total operating expenses		26,587			19,426			82,688			56,042
Operating income (loss)		(12,890	)		2,863			(9,504	)		1,405
Other expense, net:
Interest income		1,874			387			4,913			849
Interest expense		(10	)		(444	)		(619	)		(1,348	)
Other expense, net		(426	)		(847	)		(5,422	)		(989	)
Net income (loss) before benefit from income taxes		(11,452	)		1,959			(10,632	)		(83	)
Provision for (benefit from) income taxes		793			381			935			(17	)
Net income (loss) for the period	$	(12,245	)	$	1,578		$	(11,567	)	$	(66	)
Net income (loss) per share - basic	$	(0.21	)	$	0.14		$	(0.26	)	$	(0.01	)
Net income (loss) per share - diluted	$	(0.21	)	$	0.03		$	(0.26	)	$	(0.01	)
Shares used in computing non-GAAP net income (loss) per share - basic		58,821			11,425			45,087			11,347
Shares used in computing non-GAAP net income (loss) per share - diluted		58,821			57,322			45,087			11,347

BigBand Networks, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts, Unaudited)

	Three Months Ended September 30, 2007
	GAAP Results			Stock-based Comp/Amortization of Intangibles Expense			Realignment Expenses			Non-GAAP Results
Net revenues:
Products	$	29,942		$	—		$	—		$	29,942
Services		8,608			—			—			8,608
Total net revenues		38,550			—			—			38,550
Cost of net revenues:
Products		21,284			287			5,541			15,456
Services		3,569			166			11			3,392
Total cost of net revenues		24,853			453			5,552			18,848
Gross profit		13,697			(453	)		(5,552	)		19,702
Operating expenses:
Research and development		12,869			1,103			222			11,544
Sales and marketing		9,907			1,149			12			8,746
General and administrative		3,668			456			22			3,190
Amortization of purchased intangible assets		143			143			—			—
Total operating expenses		26,587			2,851			256			23,480
Operating loss		(12,890	)		(3,304	)		(5,808	)		(3,778	)
Other expense, net:
Interest income		1,874			—			—			1,874
Interest expense		(10	)		—			—			(10	)
Other expense, net		(426	)		—			—			(426	)
Net loss before provision for income taxes		(11,452	)		(3,304	)		(5,808	)		(2,340	)
Provision for income taxes		793			438			—			355
Net loss for the period	$	(12,245	)	$	(3,742	)	$	(5,808	)	$	(2,695	)
Net loss per share - basic	$	(0.21	)	$	(0.06	)	$	(0.10	)	$	(0.05	)
Net loss per share - diluted	$	(0.21	)	$	(0.06	)	$	(0.10	)	$	(0.05	)
Shares used in computing non-GAAP net loss per share - basic		58,821			58,821			58,821			58,821
Shares used in computing non-GAAP net loss per share - diluted		58,821			58,821			58,821			58,821

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,
	2007			2006			2007			2006
GAAP gross profit as reported	$	13,697		$	22,289		$	73,184		$	57,447
Stock-based compensation expense		453			89			1,152			181
Inventory write-downs relating to CUDA product line		5,000			—			5,000			—
Fixed Assets depreciation adjustments		552			—			552			—
Non-GAAP Gross profit	$	19,702		$	22,378		$	79,888		$	57,628
As a percentage of net revenues:
GAAP gross profit as reported		35.5	%		51.8	%		50.2	%		50.6	%
Non-GAAP Gross profit		51.1	%		52.0	%		54.8	%		50.7	%
GAAP operating income (loss) as reported	$	(12,890	)	$	2,863		$	(9,504	)	$	1,405
Inventory write-downs relating to CUDA product line		5,000			—			5,000			—
Fixed Assets depreciation adjustments		808			—			808			—
Stock-based compensation expense:
- Cost of goods sold		453			89			1,152			181
- Research and development		1,103			205			2,834			512
- Sales and marketing		1,149			131			3,338			310
- General and administrative		456			129			1,197			327
Amortization of intangibles		143			143			429			429
Non GAAP operating income (loss)	$	(3,778	)	$	3,560		$	5,254		$	3,164
GAAP net income (loss) as reported	$	(12,245	)	$	1,578		$	(11,567	)	$	(66	)
Stock-based compensation expense		3,161			554			8,521			1,330
Amortization of intangibles		143			143			429			429
Preferred stock warrant expense		—			1,244			4,974			1399
Inventory write-downs relating to CUDA product line		5,000			—			5,000			—
Fixed Assets depreciation adjustments		808			—			808			—
Tax effect of adjustments		438			(62	)		(340	)		(332	)
Non GAAP net income (loss)	$	(2,695	)	$	3,457		$	7,825		$	2,760
Net income (loss) per share, non-GAAP - basic	$	(0.05	)	$	0.30		$	0.17		$	0.24
Net income (loss) per share, non-GAAP - diluted	$	(0.05	)	$	0.06		$	0.12		$	0.05
Shares used in computing non-GAAP net income (loss) per share - basic		58,821			11,425			45,087			11,347
Shares used in computing non-GAAP net income (loss) per share - diluted		58,821			57,322			67,372			56,601