Digital video specialist BigBand Networks Inc.(Nasdaq: BBND - message board) posted second-quarter net revenues of $54.5 million, up 45 percent from a year ago. That fueled a profit of $1.7 million, or 2 cents per diluted share, versus last year's net loss of $600,000, or 5 cents per share. (See BigBand Posts Q2 Profit and BigBand IPO: Boing!)

    BigBand saw gross margins improve in the quarter, from 48.7 percent to 53.4 percent. (See BigBand Shares on Downward Swing and BigBand Rebounds.) The company's shares were up $1.49 (11.93 percent), to $13.98 each in late afternoon trading Thursday.

    Although BigBand has not secured a switched digital video foothold with Comcast Corp. (Nasdaq: CMCSA, CMCSK) as that MSO embarks on early technical trials, it has been a key deployment partner with MSOs such as Time Warner Cable Inc. (NYSE: TWC - message board), Cox Communications Inc. , and Cablevision Systems Corp. (NYSE: CVC - message board).

    Looking ahead,the company expects to record third-quarter revenues in the range of $54 million to $58 million, and non-GAAP (generally accepted accounting principles) earnings per share of 3 cents to 7 cents. On a GAAP basis, earnings could range from a loss of 1 cent per share to a profit of 3 cents per share.

    The company said investors have requested it disclose non-GAAP information because it excludes non-cash and other "special" charges that may "obscure our true operating results."

    BigBand is holding a conference call Thursday afternoon to discuss financial results and deployment activity in more detail.