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Strategies & Market Trends : Working All Day, But Trading Behind the Bosses Back Thread -- Ignore unavailable to you. Want to Upgrade?

To: Mark[ox5] who wrote (764)	3/26/2000 3:56:00 PM
From: Mark[ox5]	Respond to of 779

More on Terayon Comm. (TERN) Last 4 Q's revenue: 38.6 Mil (65% sequential growth) 23.4 Mil (20%) 19.1 Mil (22%) 15.9 Mil (23% sequential growth) ************************* From Press Release 06-Mar-00 Terayon Communication Systems, Inc. (Nasdaq:TERN) today announced that demand for its broadband networking systems is stronger than that of the fourth quarter 1999, ended December 31, 1999. Based on current performance, the Company expects to achieve revenues of $55 million to $57 million and to exceed analysts' consensus estimates for earnings per share for first quarter 2000. ** So essentially this calls for a 42 to 48% sequential revenue Q. at $56 Mil revenue you have an annualized revenue rate of $225 Mil. Market cap currently near 5 Billion ($215), and had fallen to $150s during the recent correction (roughly 4B Mkt Cap) Terayon had a huge run recently inspired by George Gilder favorable comments (52 week high is $285, and since then corrected over 130 pts); now sitting still 25% below all time high. To put it in perspective, two of my favorite companies: Applied Micro Circuits (AMCC) is sitting at an annualized (based on last Q) revenue run rate just below $200M and last 4 Qs sequential growth rates of 20, 19, 6, 11, Market cap sits at $17 Billion PMC Sierra (PMCS) annualized revenue = $320M and last 4Q sequentials are 12,20,18,10. Market cap sits at $32 Billion. Granted AMCC and PMCS are considered more diversified plays compared to TERN and EFNT, as well as IC plays vs "equipment plays", but you are getting similar revenue run rates (and higher growth rates) in pure internet infrastructure (pick and shovel) stocks for a fraction of the market cap of the better known names.