04:34 PM BW Terayon Reports Second Quarter 1999 Results
July 13, 1999 04:34 PM
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 13, 1999--Terayon Communication Systems, Inc. TERN , a leading supplier of cable modem broadband systems, today reported its results for the second quarter and for the six-month period ended June 30, 1999.
Terayon reported revenues of $19.1 million for the second quarter of 1999 compared to $6.9 million for the same period of last year. The net loss for the second quarter of 1999 was $3.5 million, or $0.17 per share, excluding the second quarter non-cash charge of $11.2 million, or $0.55 per share, for the cost of two warrants to purchase common stock.
This compares to a net loss for the second quarter of 1998 of $5.6 million, or $1.21 per share ($0.45 per share on a pro forma basis), excluding a dividend of $23.9 million, or $5.12 per share, recorded in connection with certain equity financing. The net loss for the second quarter of 1999, including the cost of the two warrants, was $14.6 million or $0.71 per share. The net loss for the second quarter of 1998, including the dividend, was $29.6 million or $6.33 per share ($2.36 per share on a pro forma basis). The warrants, each to purchase 1.0 million shares of common stock, were issued in the first quarter of 1999 in consideration of a Product Development Assistance Agreement. The $44.7 million fair value of the two warrants will be accounted for as a non-cash charge included in operations over the one-year term of the Product Development Assistance Agreement.
For the six-month period ended June 30, 1999, revenues increased to $35.0 million compared to $9.4 million for the same period last year. The net loss for the six month period ended June 30, 1999 was $7.7 million, or $0.40 per share, excluding the non-cash charge for the two warrants of $12.8 million, or $0.66 per share. The net loss for the same period in 1998 was $11.3 million, or $2.46 per share ($0.94 per share on a pro forma basis), excluding the dividend of $23.9 million or $5.19 per share. The net loss for the six month period ended June 30, 1999, including the non-cash charge, was $20.5 million or $1.06 per share. The net loss for the same period in 1998, including the dividend, was $35.3 million or $7.65 per share ($2.91 on a pro forma basis).
Terayon CEO Zaki Rakib stated, "Terayon continues to fire on all cylinders, with a rapid increase in the market footprint of our cable modem systems. We shipped a record 58,000 modems in the quarter to cable operators worldwide, and continue to enable new systems for future modem rollouts with the shipment of 158 headends this quarter.
"Our major customers continued to deploy modems aggressively in all geographies this quarter. In North America, Shaw Communications, the cable operator with the largest number of Excite@Home subscribers, continued to deploy Terayon modems and headends across their system. Internationally, we continue to rapidly grow our customer base. In Japan, where we are the market leader, we continue to see rapid growth in shipments to key operators, such as Excite@Home affiliate, Jupiter Telecommunications. In Europe, where Terayon has a contract to ship 225,000 modems to the largest European operator, United Pan-Europe Communications (UPC), we have begun shipments to UPC affiliates in several European countries. This quarter we completed a major training program with Rogers Cablesystems, Canada's largest cable operator, paving the way for shipments in the third quarter."
Zaki Rakib continued, "We are on track with the development of our next-generation DOCSIS cable modem system, based on the advanced physical layer specification. We expect to be first to market with a DOCSIS 1.2 system that offers a leap in reliability and performance for broadband access."
Terayon Communication Systems provides cable operators with reliable, high-capacity cable modem systems that support a full range of broadband services. The Company, based in Santa Clara, California, USA, has sales and support offices worldwide, and is traded on the Nasdaq National Market under the symbol TERN. Terayon can be found on the web at www.terayon.com.
|
