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

To: arun gera who wrote (500)	4/12/2000 2:04:00 AM
From: pat mudge	Respond to of 1658

May be worth verifying. The date for conference call is really quite close to the Cable Labs decision date. I was able to verify that FA/TDMA, and not S-CDMA, was selected for the DOCSIS advanced PHY at the DOCSIS vendor meeting on January 13th in Denver. Terayon was present(2 representatives), but they would have been informed of the outcome before this date. 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? I believe they have bought products but that sales are slowing because of the push to deploy standard, DOCSIS, systems. There are three points to this debate: 1) the amount given in warrants 2) the price paid for products shipped, and 3 the need to deploy DOCSIS products by both Rogers and Shaw. (Incidentally, the two cable companies are cooperating in their deployments with Shaw focusing on Western Canada and Rogers on Eastern.) 1) What the two companies have made in warrants has allowed them to over-pay for products. Nothing wrong as long as you don't mind paying a high price for a non-standard product. TERN has an OEM DOCSIS modem with no margins so there's no incentive to sell them. 2) By receiving high prices on their proprietary modems, TERN's revenues indicate they're selling more than they are. Again, no problem as long as you're making decent margins. Based on what was said in the CC, they aren't. 3) Rogers and Shaw have made it clear they want DOCSIS products. This issue was brought up in the last CC when it became clear Terayon hadn't received the Rogers waiver in time to ship products that quarter. (They recognized the revenue unfairly and the SEC has sanctioned them and they now have to subtract the amount at the end of 1H2000) I listened to the CC and it was not a class act. Far from it. I'll post summary on CMTO thread. Pat