Mark, hello! what's wrong with this story? The days of Internet companies chasing revenue growth without never making a profit are gone.
Now, any idiot can read below and figure out Tern is in trouble.
Btw
Where's the General (Custer)?
>. For the 9 months ended 9/30/00, revenues totalled $276.7M, up from $58.3M. Net loss rose 98% to $89.2M.
Now the update.
>NEW YORK, Dec 18 (Reuters) - Shares of Terayon Communication Systems Inc. (NASDAQ: TERN) plunged nearly 60 percent on Monday after the maker of high-speed communications gear warned of a steep loss and sharply lower than expected revenue due to several order cancellations.
The stock was down $8-13/32, at $5-5/32 in heavy afternoon trading on the Nasdaq, where it was the No. 1 percentage loser on the day. The shares fell as low as $5-1/8, their lowest point since October 1998.
With Monday's fall, Terayon shares are now down more than 96 percent from their high of $142-5/8 in March.
Before the market opened, the Santa Clara, Calif., company said in a statement that, excluding charges, it expects to record a fourth-quarter loss of $34 million to $36 million, or 46 cents to 49 cents per share, on revenue of $60 million to $63 million.
The loss could be as high as 74 cents to 77 cents a share if the company incurs $20 million in charges related to the discontinuation of a cable modem product line, Terayon added.
Wall Street analysts on average had been expecting a profit of 6 cents per share on revenue of $130.3 million, according to research firm First Call/Thomson Financial. A year earlier it had earned 2 cents a share on revenue of $38.7 million.
The company said the shortfall is principally due to the cancellation of orders late in the quarter and an unexpected slowdown in the growth of existing and new customers' orders.
Terayon said its expenses and inventory had increased in anticipation of revenue more in line with the rapid growth rates it had been experiencing earlier this year. Now, with the economy softening, it said it believes its customers -- which include cable television and high-speed Internet access providers -- have sufficient inventory to handle slower expansion rates on their systems.
Terayon said the poor outlook will stretch into next year, forcing it to cut its internal operating plan for 2001.
The company is not alone in its difficulties.
Adtran Inc. (NASDAQ: ADTN), another maker of network-access equipment, warned last week its fourth-quarter profits will miss Wall Street expectations. Its shares were down 10 percent Monday.
Hurting the sector has been a slowdown in purchases by corporations and in sales to the dominant local telephone companies, which may be delaying purchases until the new year.
Terayon Chief Executive Officer Zaki Rakib said the company will reorganize itself and enact cost-cutting measures beginning in the first quarter as a result of the earnings outlook. Additional details of the plan were not immediately available. |
