To: Redfisherman who wrote (1721 ) 2/15/2000 1:28:00 PM From: pat mudge Read Replies (2) | Respond to of 2347
Terayon's latest SEC filing:sec.gov If you compare today's filing with the on filed on January 25, you will notice one entire paragraph has been omitted (highlighted at bottom). I need help in understanding why the description of the Rogers agreement would be missing. Today's: <<<< Our Business Is Subject to the Risks of Product Returns, Product Liability and Product Defects. Products as complex as ours frequently contain undetected errors orfailures, especially when first introduced or when new versions are released.Despite testing, errors may occur. The occurrence of errors could result inproduct returns and other losses to our company or our customers. This occurrence also could result in the loss of or delay in market acceptance of our products. Due to the recent introduction of our products, we have limited experience with the problems that could arise with this generation of products. Our purchase agreements with our customers typically contain provisions designed to limit our exposure to potential product liability claims. However, the limitation of liability provision contained in our purchase agreements may not be effective as a result of federal, state or local laws or ordinances or unfavorable judicial decisions in the United States or other countries. We have not experienced any product liability claims to date, but the sale and supportof our products entails the risk of such claims. In addition, any failure by our products to properly perform could result in claims against us by our customers. We maintain insurance to protect against certain claims associated with the use of our products, but our insurance coverage may not adequately cover any claim asserted against us. In addition, even claims that ultimately are unsuccessful could result in our expenditure of funds in litigation and management time and resources. The one filed on January 25, 2000: <<<< Our Business Is Subject to the Risks of Product Returns, Product Liability and Product Defects. Products as complex as ours frequently contain undetected errors orfailures, especially when first introduced or when new versions are released.Despite testing, errors may occur. The occurrence of errors could result inproduct returns and other losses to our company or our customers. This occurrence also could result in the loss of or delay in market acceptance of our products. Due to the recent introduction of our products, we have limited experience with the problems that could arise with this generation of products. Our purchase agreements with our customers typically contain provisions designed to limit our exposure to potential product liability claims. However, the limitation of liability provision contained in our purchase agreements may notbe effective as a result of federal, state or local laws or ordinances or unfavorable judicial decisions in the United States or other countries. We have not experienced any product liability claims to date, but the sale and support of our products entails the risk of such claims. In addition, any failure by our products to properly perform could result in claims against us by our customers. We maintain insurance to protect against certain claims associated with the use of our products, but our insurance coverage may not adequately cover any claim asserted against us. In addition, even claims that ultimately are unsuccessful could result in our expenditure of funds in litigation and management time and resources.On March 18, 1999, we entered into a Supply Agreement with Rogers Cablevision Limited (Rogers Cablevision), a subsidiary of RogersCommunications. 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 committedto certain product pricing and specifications. Under the terms of the SupplyAgreement, Rogers retains the right to return to us all product purchased untilwe meet certain conditions. Accordingly, we do not recognize revenue on shipments to Rogers Cablevision until the milestones specified in the SupplyAgreement have been achieved or Rogers Cablevision has waived the right toreturn the product. For the three month period ended December 31, 1999, we did not met the milestones required by Rogers Cablevision in the Supply Agreementand 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 theconditions specified in the Supply Agreement or obtain waivers from RogersCablevision in future quarters.