TERN's latest SEC filing, dated January 25, 2000:
sec.gov
They've announced a secondary sale of shares, and there's also a thorough discussion of the current DOCSIS status, however, I find the following statements of most interest:
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On January 18, 2000, we announced revenues of approximately $38.7 million for the fourth quarter ended December 31, 1999. Our expectations are preliminary and are subject to the completion of an audit of our December 31, 1999 financial statements.
. . .
[Three customers were 65% for all of 1998 and 54% for first 9 mos of 1999:]
Three customers accounted for approximately 54% of our revenues in the first nine months of 1999 and three customers accounted for approximately 65% of our revenues for the year ended December 31, 1998. We believe that a substantial majority of our revenues will continue to be derived from sales to a relatively small number of customers for the foreseeable future. In addition, we believe that sales to these customers will be focused on a small number of projects. The cable industry is undergoing significant consolidation in the United States and internationally, and a limited number of cable operators controls an increasing number of cable systems. As a result, our sales will be largely dependent upon product acceptance by the leading cable operators. . . .
On March 18, 1999, we entered into a Supply Agreement with Rogers Cablevision Limited ("Rogers Cablevision"), a subsidiary of Rogers Communications. Under the Supply Agreement, we agreed to make available to Rogers Cablevision our current TeraLink Gateway and TeraLink 1000 MasterController, and TeraPro Cable Modems and specified software. We also committed to certain product pricing and specifications. Under the terms of the Supply Agreement, Rogers retains the right to return to us all product purchased until we meet certain conditions. Accordingly, we do not recognize revenue on shipments to Rogers Cablevision until the milestones specified in the Supply Agreement have been achieved or Rogers Cablevision has waived the right to return the product. For the three month period ended December 31, 1999, we did not met the milestones required by Rogers Cablevision in the Supply Agreement and Rogers Cablevision has not waived its right to return certain product purchased. Accordingly, we cannot recognize revenue on the sales of product to Rogers Cablevision for the three month period ending December 31, 1999 until our product meets certain milestones as required in the Supply Agreement or RogersCablevision waives the right to return the product. There is no guarantee that we will be able to obtain the waiver of conditions from Rogers Cablevision to recognize revenue for the three month period ending December 31, 1999.Additionally, there is no guarantee that we will be able to achieve the conditions specified in the Supply Agreement or obtain waivers from RogersCablevision in future quarters. |
