BigBand Networks 8-K Bigband Networks Reports Second Quarter 2008 Results

Exhibit 99.1

BIGBAND NETWORKS REPORTS SECOND QUARTER 2008 RESULTS

Company reports strong performance and solid fundamentals as a pure play digital video business

REDWOOD CITY, Calif., July 31, 2008—BigBand Networks, Inc., (NASDAQ: BBND) today reported financial results for the second quarter ended June 30, 2008.

For the second quarter of 2008, total revenues were $43.0 million as compared to $39.9 million reported in the first quarter of 2008 and $54.5 million reported in the second quarter of 2007, which included $7.1 million from the subsequently retired CMTS platform.

GAAP net income for the second quarter of 2008 was $1.2 million, or $0.02 per diluted share. These results compare to a net loss of $1.9 million, or $(0.03) per share, reported in the first quarter of 2008 and net income of $1.7 million, or $0.02 per diluted share, reported in the second quarter of 2007.

On a non-GAAP basis, the Company reported net income of $4.5 million, or $0.07 per diluted share, in the second quarter of 2008. These numbers exclude $2.4 million in stock-based compensation expense, $1.2 million in restructuring expense and $143,000 in amortization of intangibles, offset by a $287,000 benefit from the sale of CMTS platform inventory previously reserved for in a prior period and $202,000 in income taxes. This compares to non-GAAP net income of $1.4 million, or $0.02 per diluted share, reported in the first quarter of 2008 and non-GAAP net income of $ 4.7 million, or $0.07 per diluted share, reported in the second quarter of 2007. The previous quarters’ non-GAAP results also reflect adjustments for stock-based compensation, amortization of intangibles, restructuring and related tax expenses.

At June 30, 2008, deferred revenue was $69.2 million, up from $63.7 million at March 31, 2008 and $67.3 million as of December 31, 2007. The Company ended the second quarter with $158.8 million in cash, cash equivalents and marketable securities, compared to $150.0 million in the prior quarter and $154.5 million at December 31, 2007.

“We are pleased to report another quarter of solid execution, continued progress in leveraging our platform and building additional functionality for new and existing customers,” commented Amir Bassan-Eskenazi, president and CEO of BigBand Networks. “The industry is shifting toward more High Definition programming, and operators are retooling and enhancing their networks. This trend continues to drive all areas of our business - broadcast, Switched Digital Video and Telco TV solutions. We are optimistic about the opportunity ahead and are well positioned to leverage our technology know-how, customer relationships, and footprint.”

In an effort to reduce its foreign currency exchange exposure going forward, in the second quarter of 2008 the Company reduced foreign currency based purchases and the related forward exchange contracts it had in place. As a result of these changes, the Company recorded, in its GAAP and non-GAAP results, a one-time derivative gain of $1.0 million, which was reported in other income along with other foreign exchange gains of approximately $400,000.

Third Quarter 2008 Business Outlook

For the third quarter of 2008, management provides the following outlook:

• Net revenues are expected to be in the range of $46.0 to $48.0 million.

• Gross margins are expected to be in the range of 54% to 57%.

• GAAP operating expenses are expected to be in the range of $27.5 to $28.0 million.

• Non-GAAP operating expenses are expected to be in the range of $24.5 to $25.0 million.

• GAAP net earnings per share is expected to be in the range of a loss of $(0.02) to a profit of $0.01.

• Non-GAAP net income per share is expected to be in the range of $0.02 to $0.05.

The following table presents our non-GAAP anticipated results for the quarter ending September 30, 2008, reconciled to our GAAP anticipated results. Our non-GAAP anticipated results exclude (i) amortization of intangible assets, (ii) stock-based compensation and (iii) related income taxes.

	Third quarter 2008 Estimated Earnings per Share
	Low			High
GAAP net (loss) income	$	(0.02	)	$	0.01
Amortization of intangibles and stock-based compensation, net of taxes		0.04			0.04
Non-GAAP net income	$	0.02		$	0.05

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 that many investors feel may obscure our true operating costs. 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, amortization of intangible assets or preferred stock warrant expenses, which are non-cash charges, as well as restructuring charges in managing its operations. Specifically, management does not consider stock-based compensation expense when developing and monitoring our budgets and spending. The economic substance behind our decision to exclude preferred stock warrant expense, stock-based compensation and amortization of intangible assets relates to these charges being non-cash in nature and restructuring being one time charges. As a result, we use calculations of non-GAAP operating income, net income, net income per share and gross margin, which exclude, net of tax, amortization of intangible assets, stock-based compensation and restructuring charges, to evaluate our ongoing operations and to allocate resources within the organization.

As a result, our 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 our ongoing business operations and its performance 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 measure.

Conference Call Details for July 31, 2008

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 +1-800-218-0713 for the U.S. or Canada and +1-303-262-2125 for international callers. 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 Daylight Time on Thursday July 31, 2008 until 11:59 p.m. Pacific Daylight Time on August 7, 2008, by dialing +1-800-405-2236 or +1-303-590-3000 for callers outside the U.S. and Canada, and entering pass code 11116592#.

Cautionary Statement

The statements in this release regarding our business outlook with respect to the quarter ending September 30, 2008 (including revenues, gross margins, operating expenses and GAAP and non-GAAP earnings per share) 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; our ability to manage operating expenses effectively; the level of orders that are received and can be shipped in a given quarter; 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-K for fiscal year 2007 and Report on Form 10-Q for the quarter ended March 31, 2008. 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 July 31, 2008 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 of video, voice and data across a wide range of services, including digital TV, high definition TV, addressable advertising, video-on-demand, interactive TV, Internet TV, video telephony, high-speed Internet and voice-over-IP. BigBand Networks' customers include more than 100 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, emailinfo@bigbandnet.com or visitwww.bigbandnet.com.

Investor Relations:

Erica Abrams

+1.415.217.5864

erica@blueshirtgroup.com

Matthew Hunt

+1.415.489.2194

matt@blueshirtgroup.com

BigBand Networks, Inc.

Condensed Consolidated Balance Sheets

(In thousands, Unaudited)

	As of June 30, 2008			As of December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	50,854		$	55,162
Marketable securities		107,915			99,358
Total cash, cash equivalents and marketable securities		158,769			154,520
Trade receivables, net		25,195			27,855
Inventories, net		8,242			6,832
Prepaid expenses and other current assets		5,414			4,012
Total current assets		197,620			193,219
Property and equipment, net		17,193			17,432
Goodwill and other intangible assets, net		2,104			2,390
Other non-current assets		6,230			5,545
Total assets	$	223,147		$	218,586
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	9,532		$	13,811
Accrued compensation and related benefits		9,450			6,475
Current portion of deferred revenues, net		49,395			48,256
Accrued warranty		2,944			3,502
Other current liabilities		7,006			11,879
Total current liabilities		78,327			83,923
Deferred revenues, net, less current portion		19,804			19,032
Accrued warranty, less current portion		1,085			857
Accrued long-term severance pay fund		4,005			3,188
Stockholders’ equity:
Common stock		64			62
Additional paid-in capital		257,518			248,139
Deferred stock-based compensation		(65	)		(203	)
Accumulated other comprehensive (loss) income		(258	)		248
Accumulated deficit		(137,333	)		(136,660	)
Total stockholders’ equity		119,926			111,586
Total liabilities and stockholders’ equity	$	223,147		$	218,586

BigBand Networks, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts, Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Net revenues:
Products	$	33,888		$	46,261		$	65,851		$	91,917
Services		9,123			8,202			17,066			15,380
Total net revenues		43,011			54,463			82,917			107,297
Cost of net revenues:
Products		14,353			21,761			26,678			40,829
Services		3,285			3,611			6,499			6,981
Total cost of net revenues		17,638			25,372			33,177			47,810
Gross profit		25,373			29,091			49,740			59,487
Operating expenses:
Research and development		12,809			13,678			27,212			26,750
Sales and marketing		7,002			11,113			14,866			21,427
General and administrative		5,360			4,115			10,188			7,637
Restructuring charges		1,158			—			1,493			—
Amortization of intangible assets		143			143			286			286
Total operating expenses		26,472			29,049			54,045			56,100
Operating (loss) income		(1,099	)		42			(4,305	)		3,387
Interest income		1,202			2,157			2,871			3,038
Interest expense		—			(271	)		—			(609	)
Other income (expense), net		1,365			105			1,447			(4,997	)
Net income before provision for income taxes		1,468			2,033			13			819
Provision for income taxes		221			378			686			141
Net income (loss)	$	1,247		$	1,655		$	(673	)	$	678
Basic net income (loss) per common share	$	0.02		$	0.03		$	(0.01	)	$	0.02
Diluted net income (loss) per common share	$	0.02		$	0.02		$	(0.01	)	$	0.01
Shares used in computing GAAP basic net income (loss) per common share		63,400			58,140			62,898			38,373
Shares used in computing GAAP diluted net income (loss) per common share		67,548			70,764			62,898			66,725

BigBand Networks, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts, Unaudited)

	Three Months Ended June 30, 2008
	GAAP Results			Stock-based Comp/Amortization of Intangible Assets			Realignment Expenses			Non-GAAP Results
Net revenues:
Products	$	33,888		$	—		$	—		$	33,888
Services		9,123			—			—			9,123
Total net revenues		43,011			—			—			43,011
Cost of net revenues:
Products		14,353			(268	)		287			14,372
Services		3,285			(167	)		—			3,118
Total cost of net revenues		17,638			(435	)		287			17,490
Gross profit		25,373			435			(287	)		25,521
Operating expenses:
Research and development		12,809			(636	)		—			12,173
Sales and marketing		7,002			(529	)		—			6,473
General and administrative		5,360			(837	)		—			4,523
Restructuring charges		1,158			—			(1,158	)		—
Amortization of intangible assets		143			(143	)		—			—
Total operating expenses		26,472			(2,145	)		(1,158	)		23,169
Operating (loss) income		(1,099	)		2,580			871			2,352
Interest income		1,202			—			—			1,202
Other income, net		1,365			—			—			1,365
Net income before provision for income taxes		1,468			2,580			871			4,919
Provision for income taxes		221			202			—			423
Net income	$	1,247		$	2,378		$	871		$	4,496
Basic net income per common share	$	0.02								$	0.07
Diluted net income per common share	$	0.02								$	0.07
Shares used in computing basic net income per common share		63,400									63,400
Shares used in computing diluted net income per common share		67,548	��								67,548

BigBand Networks, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts and percentages, Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
GAAP and Non-GAAP net revenues as reported	$	43,011		$	54,463		$	82,917		$	107,297
GAAP cost of net revenues as reported	$	17,638		$	25,372		$	33,177		$	47,810
Inventory recovery relating to CMTS platform		287			—			755			—
Stock-based compensation expense		(435	)		(426	)		(889	)		(699	)
Non-GAAP cost of net revenues	$	17,490		$	24,946		$	33,043		$	47,111
GAAP gross profit as reported	$	25,373		$	29,091		$	49,740		$	59,487
Inventory recovery relating to CMTS platform		(287	)		—			(755	)		—
Stock-based compensation expense		435			426			889			699
Non-GAAP gross profit	$	25,521		$	29,517		$	49,874		$	60,186
As a percentage of net revenues:
GAAP gross profit as reported		59.0	%		53.4	%		60.0	%		55.4	%
Non-GAAP gross profit		59.3	%		54.2	%		60.1	%		56.1	%
GAAP operating (loss) income as reported	$	(1,099	)	$	42		$	(4,305	)	$	3,387
Inventory recovery relating to CMTS platform		(287	)		—			(755	)		—
Stock-based compensation expense:
- Cost of goods sold		435			426			889			699
- Research and development		636			1,058			1,895			1,731
- Sales and marketing		529			1,037			1,248			2,189
- General and administrative		837			427			1,631			741
Restructuring charges		1,158			—			1,493			—
Amortization of intangible assets		143			143			286			286
Non-GAAP operating income	$	2,352		$	3,133		$	2,382		$	9,033
GAAP net income (loss) as reported	$	1,247		$	1,655		$	(673	)	$	678
Stock-based compensation expense		2,437			2,948			5,663			5,360
Amortization of intangible assets		143			143			286			286
Inventory recovery relating to CMTS platform		(287	)		—			(755	)		—
Restructuring expenses		1,158			—			1,493			—
Preferred stock warrant expense		—			—			—			4,974
Tax effect of adjustments		(202	)		(34	)		(107	)		(778	)
Non-GAAP net income	$	4,496		$	4,712		$	5,907		$	10,520
Basic Non-GAAP net income per common share	$	0.07		$	0.08		$	0.09		$	0.27
Diluted Non-GAAP net income per common share	$	0.07		$	0.07		$	0.09		$	0.16
Shares used in computing Basic Non-GAAP net income per common share		63,400			58,140			62,898			38,373
Shares used in computing Diluted Non-GAAP net income per common share		67,548			70,764			67,254			66,725