Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Terayon - S CDMA player (TERN) -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (489)	4/12/2000 12:48:00 AM
From: arun gera	Read Replies (1) \| Respond to of 1658

>>The letter from CableLabs to Rakib is dated Feb. 2, 2000, and the final decision to use TDMA and not S-CDMA, and thus eliminate Terayon from the co-authoring process, was made around the second week of January. I don't have this documented but you could contact CableLabs to verify exact date.>> May be worth verifying. The date for conference call is really quite close to the Cable Labs decision date. >>What I do like about Terayon - they have been aggressively selling to a large number of customers. The selling practices and issuing warrants is fishy, but no customer will buy TERN products if they do not work and especially the headends. No Cable operator is going to risk committing to a headend because TERN is giving discounts on modems. However, it is possible that the warrant sweet deal could have inflated margins.That would be something to worry about. >>I have a different understanding of "wide array of customers." Their two largest represent 70% of sales, and their four largest, 95%. From the latest 10-K:>> That is not unexpected. There are not that many large Cable Companies out there. Tell me why would even one of them buy a product that does not work or sub-par, especially a headend? Arun

To: pat mudge who wrote (489)	4/12/2000 12:48:00 AM
From: Jay Fisk	Respond to of 1658

Why would "Cost of Goods Sold" vary from proforma to actual ? Guess we'll have to wait for the 10Q. --------------------------------------------------- Terayon Communication Systems, Inc. Unaudited Pro Forma Condensed Consolidated Statements of Operations Three Months Ended March 31, ------------------------------- 2000 1999 ---- ---- Revenues $59,337 $15,873 Cost of goods sold 37,619 13,955 ---------------------------- Gross profit 21,718 1,918 ---------------------------- Operating expenses: Research and development 10,008 3,155 Sales and marketing 7,198 2,836 General and administrative 4,019 1,163 ---------------------------- Total operating expenses 21,225 7,154 ---------------------------- Pro forma income (loss) from operations 493 (5,236) Net interest income 1,394 958 ---------------------------- Pro forma net income (loss) $1,887 ($4,278) =============================== Pro forma net income (loss) per share, basic and diluted $0.06 ($0.23) =============================== Shares used in pro forma per share calculation, basic and diluted 32,966 18,336 =============================== Terayon Communication Systems, Inc. Unaudited Condensed Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended March 31, ------------------------------- 2000 1999 ---- ---- Revenues $59,337 $15,873 Cost of goods sold 43,948 13,955 ------------------------------- Gross profit 15,389 1,918 ------------------------------- Operating expenses: Research and development 10,568 3,155 Cost of product development assistance agreement 9,563 1,615 Sales and marketing 7,676 2,836 General and administrative 4,185 1,163 In-process research and development 6,750 -- Amortization of goodwill 6,435 -- ------------------------------- Total operating expenses 45,177 8,769 ------------------------------- Loss from operations (29,788) (6,851) Net interest income 1,394 958 ------------------------------- Net loss (28,394) (5,893) =============================== Historical net loss per share, basic and diluted ($1.04) ($0.32) =============================== Shares used in historical per share calculation, basic and diluted 27,256 18,336 ===============================

To: pat mudge who wrote (489)	4/12/2000 12:52:00 AM
From: Dan B.	Read Replies (1) \| Respond to of 1658

Pat, Re: "The letter from CableLabs to Rakib is dated Feb. 2, 2000, and the final decision to use TDMA and not S-CDMA, and thus eliminate Terayon from the co-authoring process, was made around the second week of January." You should know darn well the above is misleading as all get out, if not plain false. So you say Terayon was "eliminated" from the authoring process as of the 2nd week of January? I think that's false, plain false. And you say a "final" decision was made not to use S-CDMA? Gimme a break...that's an interim decision, not a final one. Cablelabs latest on the subject still states that S-CDMA will "likely" be included in the future if TERN delivers a system with the compatibility and benefits "EXPECTED." So TERN is STILL welcome to be a part of the authoring process, I do believe. Please correct me if I am materially wrong here. Good lord, the cease and desist letter itself recognizes TERN's valued contributions. You should be ashamed of yourself, IMO. Dan B

To: pat mudge who wrote (489)	12/20/2002 3:04:48 PM
From: Dan B.	Respond to of 1658

Re your: "The letter from CableLabs to Rakib is dated Feb. 2, 2000, and the final decision to use TDMA and not S-CDMA, and thus eliminate Terayon from the co-authoring process, was made around the second week of January." I told you at the time you mis-stated the above. Tern thought sooner(1.1), you thought/wrote never. Now S-CDMA has been in DOCSIS for some time, and I think perhaps my point ought finally to be well taken. Still never having owned this stock, I am never-the-less pleased to report that while 5 companies received DOCSIS 2.0 certification yesterday(TDMA AND S-CDMA within), including Terayon, ONLY Terayon received certification for a CMTS, Re: "DOCSIS 2.0 modems from Motorola, Scientific-Atlanta, Terayon, Texas Instruments and Xrosstech were certified and a cable modem termination system (CMTS) from Terayon received DOCSIS 2.0 qualification." -- cablelabs.com So, here is an obvious window for Terayon, which has become the fifth largest DOCSIS modem seller already, and now has the only 2.0 certified CMTS to boot. I'm sure this will likely change in the next certification wave. I only wish my confidence had led me to buy TERN two days ago, for a quick little bundle of profit, LOL. Dan B