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Non-Tech : Anthony Returned the Donation -- Ignore unavailable to you. Want to Upgrade?

To: Pluvia who wrote (106)	5/27/2000 1:29:00 AM
From: feminvstr	Read Replies (1) \| Respond to of 445

PLUVIA, once again we agree to disagree...I think this pretty well sizes up TERN and its future! Tell me what you disagree with? Terayon is currently on the verge of explosive revenue growth. To understand this company's potential, you must understand the needs of the cable companies, the advantages of the company's S-CDMA technology, and a little bit about CableLabs DOCSIS standards. CableLabs manages a certification process to ensure DOCSIS cable modems manufactured by different vendors comply with the standard and are interoperable. Those products that pass the tests earn the right to affix a seal marked "CableLabs Certified" to their DOCSIS cable modem packaging, informing buyers that the product is guaranteed to interoperate with other certified products. In April 1999 CableLabs issued a second-generation specification called DOCSIS 1.1, which adds key enhancements to the original standard, such as improved QoS and hardware-based packet-fragmentation capabilities, to support IP telephony and other constant-bit-rate services. In short, DOCSIS 1.1 provides the bandwidth and latency guarantees required to offer toll-quality voice, dedicated business-class data services and multimedia applications across a shared cable modem access network. The next-generation standard is designed to be backward compatible, enabling DOCSIS 1.0 and 1.1 modems to operate in the same spectrum on the same network. In addition to 1.1, CableLabs is eyeing a third-generation DOCSIS standard, tentatively called DOCSIS 1.2, which would add an advanced PHY to the core specification to increase upstream transmission capacity and reliability. The plan is to use frequency-agile time division multiple access (FA-TDMA) technology advocated by Broadcom and synchronous code division multiple access (S-CDMA) technology developed by Terayon Communication Systems. It is important to understand that DOCSIS is being threatened in Europe by a EuroDOCSIS standard that emphasizes digital broadcast video. I believe CableLabs will have to be more yielding in order to gain broader acceptance. Moreover, Adelphia Cable recently decided to use Terayon's proprietary S-CDMA modems in their Los Angeles cable market. This modem is not CableLabs certified, but confers strategic advantages to Adelphia in ramping up cable service. Adelphia is the first U.S. based cable operator to go with a non-CableLabs certified next-generation cable modem. CableLabs regulatory powers will continue to weaken as more U.S. based cable companies select to deploy non-standards based modems. For this reason, I expect CableLabs to be more yielding to Terayon's demands concerning the sharing of proprietary technologies and I anticipate the incorporation of S-CDMA technology in DOCSIS 1.2. Lastly, the current law suits have no merit and were brought about indirectly by short sellers after last quarters earnings conference call. Seeking to turn the tide in their favor, shorts posing as legitimate stock analysts attacked Terayon's credibility during the company's first-quarter earnings call on April 11, accusing top management of withholding critical information from shareholders and engaging in illegal insider trading activities. The strategy worked, spurring several class-action shareholder lawsuits, and combined with the NASDAQ's general malaise, sent Terayon shares into a tailspin Terayon CEO Zaki Rakib responded to the charges in a written statement saying "we are confident that a vigorous defense of these allegations will prove them to be groundless and completely without merit." I expect a quick resolution with regards to the current lawsuits, DOCSIS 1.2 CableLabs certification, continued market share gains worldwide with significant revenue growth, and a large stock price appreciation. Strong backing from George Gilder should also help lift the current stock price. thank you Kimberly