Listen Gst On Tern the whole Telecom sector is slow. Tern is not a bad company i think they'll turn it around when telecom sector does. I'm just thinking it might be dead money for awhile. This wasn't new news that just come out so be patient. But thats up to you?
Terayon Expects Lower Revenues and Earnings Loss in Fourth
Quarter
SANTA CLARA, Calif., Dec. 18 /PRNewswire/ -- Terayon Communication Systems, Inc. (Nasdaq:
TERN), a leading supplier of broadband networking systems, today announced that it expects
revenues and earnings for the fourth quarter 2000 to be significantly less than previously
anticipated, due to the cancellation of orders late in the quarter and an unexpected slowdown
in the growth of orders for its products by existing and new customers. As a result of the current
economic outlook, the Company believes that its customers have had sufficient inventory levels
as they face uncertainty in the growth of deployment rates in 2001. The Company, which
reported revenues of $38.7 million in the fourth quarter a year ago, said it expects revenues in
fourth quarter 2000 to be in the range of $60 to $63 million, below its previous internal
forecasts.
Terayon grew its operating expenses and inventory in the fourth quarter in anticipation of
substantially greater revenue growth, consistent with the Company's performance in earlier
quarters this year. Additionally, there is a possibility that Terayon may incur vendor cancellation
charges of approximately $20 million in connection with the discontinuation of one of its
DOCSIS cable modem products. Without these special charges, Terayon expects to report a pro
forma loss for the fourth quarter 2000 of between $34 and $36 million, or a loss per share of 46
to 49 cents. Including these cancellation charges, the pro forma loss would increase by
approximately 28 cents per share. Based on these results, the Company will be revising
downward its internal operating plan for 2001.
Terayon CEO Zaki Rakib said, "We are very disappointed with these results. Based on our
assessment of Terayon's core competencies and our outlook for the market segments that we
serve, the Company has decided to reorganize around two industry segments: highly
differentiated, high margin broadband infrastructure equipment and high volume, lower margin
customer premise equipment. We believe that this reorganization will allow Terayon to better
serve its customers and enhance shareholder value going forward by allowing the market to
better assess the value of its businesses. Beginning in the first quarter of 2001, we will also
undertake measures to re-align the Company's costs of operation to the new organization."
Furthermore, Mr. Rakib added, "With the recent achievement of milestones in the Company's
development of advanced physical layer technology, Terayon intends to create a separate
business focused on next generation, DOCSIS system-on-the-chip solutions."
Terayon will conduct a conference call concerning this announcement on Thursday, December
21, at 2:00 p.m. (PST)/5:00 p.m. (EST). A live audio webcast will be available at
www.streetfusion.com and www.terayon.com . A recording of this call will be available for replay
through Wednesday, December 27. The telephone number for the replay is 703-925-2435 and
the confirmation code is 4855869.
About Terayon:
Terayon Communication Systems provides innovative broadband systems and solutions for the
delivery of advanced, carrier-class voice, data and video services, which are deployed by the
world's leading cable, telco and satellite network operators and carriers. Terayon, headquartered
in Santa Clara, California, has sales and support offices worldwide, and is traded on the Nasdaq
under the symbol TERN. Terayon can be found on the web at www.terayon.com . |
