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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Iris Shih who wrote (22787)	8/16/1999 1:28:00 AM
From: Clint E.	Read Replies (4) \| Respond to of 68600

>>>>Keep any eye on ,,,,,, and tern I'll be careful with TERN as an investment. From CMTO's 10Q: ============= The average sales price of cable modems declined 14% during the second quarter of 1999 due to planned price reductions to meet price pressures as competitors brought DOCSIS (standard compliant modems) products to market. We anticipate that the average sales price of cable modems will continue to decline during the remainder of 1999 but at a more moderate rate than we experienced in the second quarter. The average sales price of headend equipment also declined in the second quarter of 1999 due to planned price reductions and mix of product sold. We anticipate that the average sales price of headend equipment will be relatively stable during the remainder of 1999. ============= And from TERN's 10Q: -------- We anticipate that unit ASPs of our products will decline in the future. This could cause a decrease in the gross margins for these products........The TeraPro modems have significantly lower margins than the TeraLink 1000 Master Controllers and TeraLink Gateway headend products........For the foreseeable future, we expect to achieve only nominal margins on TeraPro cable modems. We also expect that sales of TeraPro cable modems will continue to constitute a significant portion of our revenues. As a result of these factors, our gross margins and operating results are likely to suffer in the near term...........In addition, we believe that the widespread adoption of industry standards is likely to further erode ASPs, particularly for cable modems. It is likely that the adoption of industry standards will result in increased retail distribution of cable modems, which could put further price pressure on our modems.............We believe the adoption of DOCSIS 1.2 will result in increased competition in the North American cable modem market. -------- Investors still remember USRX.