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: GOPbabe who wrote (1266)	11/13/2000 3:49:57 PM
From: CDMQ	Read Replies (1) \| Respond to of 1658

Snip from Gilder Terayon expands focus I break from my optical daydreams and resolve to interview Shlomo, a king of connectivity. He is a man in a plane, and in a company like in a plane still in hurtling ascent, yet, assumed by the market to be stalling and ready to tumble from the skies. You remember Terayon, don’t you? Breaking through last year in Asia with code division multiple access (CDMA) cable modems and set to become the “next Qualcomm.” Then strangely purchasing RADWIZ for $50 million to enter the digital subscriber line (DSL) market. And Imedia for $100 million to acquire video routing capabilities and MPEG digital video for the cable TV headend. And Combox for wireless and satellite terminal gear and Telegate for voice over IP. If you have the best cable technology, why diversify into the brambles of DSL and Voice over IP? Why flee upward into headend systems or satellites? I wanted to know. Shlomo replied that it was his decision and he would be vindicated by the convergence of all these technologies in single boxes, driven often by single chip systems. Without command of these access protocols, Terayon would risk usurpation by Broadcom (BRCM) and other companies supplying complete integrated silicon solutions. He implied that Terayon itself would soon sell such integrated systems on a chip along the Broadcom or Qualcomm “Spinco” model. He predicted the emergence of a more powerful Terayon that supplies boxes for residential access covering all three connection methods—cable, wireless, and twisted pair. Among the benefits of Shlomo’s four purchases, totalling over $300 million—compared to Broadcom’s $50 billion acquisition array—is the enlistment of scores of superb Israeli engineers who could constitute a potent force in fabless broadband semiconductors. Although I still have qualms about a possible loss of focus, I was persuaded that Shlomo commands an aggressive and ambitious model for his company based on a fully deliberated strategy. Yet, Shlomo has just undergone the weird experience of telling an analyst conference of his soaring revenues (up 35 percent quarter to quarter), earnings (up 70 percent), and market share (number one everywhere in the world outside the U.S. and gaining on Motorola (MOT) here), only to crash his stock by acknowledging the obvious residual effect of the force of gravity. In essence, he said that as his company accelerates its growth and increases its mass, its rate of ascent is likely to slow. According to Einstein, updated for the Telecosm, this phenomenon affects all objects as they near the speed of light, unless they are engaged in quantum tunneling or are navigated by Henry Nicholas.